Residential Realty Market Recovery in Kolkata
In Kolkata, the residential real estate market has demonstrated an impressive recovery in housing sales following the pandemic-induced lull over the past two years. The city registered the second-highest number of property registrations in July 2022 in terms of home sales. Following the resurgence of Kolkata’s realty market, the state government introduced various incentives to encourage fence-sitters to enter the market.
The city experienced a significant increase in property registrations in August 2021, recording over 7,300 registrations. This surge occurred after two years of the pandemic. Recently, Kolkata and its suburbs recorded a substantial increase in July 2022, indicating a 124% year-over-year (YoY) rise in property registrations.
Key Facts Regarding Kolkata’s 124% Increase in Residential Property Registrations
- According to the transactions in July 2022, nearly 49% of the total registrations were in the 501-1,000 sq. ft. range. Units with a floor area of 1,001 sq. ft. or more account for only 25% of the total. The share of smaller units up to 500 sq. ft. is 26%.
- As of July 2022, about 6,700 sale documents were registered compared to July 2021, recording a growth of 124% YoY in property registrations.
- Since July 2021, Kolkata has recorded the registration of about 50,900 properties in a year.
Among all the zones in Kolkata regarding property registration, the northern and southern belts attracted the highest interest from homebuyers and achieved maximum sale conversions in July 2022.
Conclusion
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, “Although home loan rates have increased recently in Kolkata, there has been a strong home-buying trend in July 2022. This supports the idea that there is a latent demand for homes that will drive the residential market with the right growth.” This substantial growth is a result of the urgency to benefit from the lowest stamp duty before the rebate period ends. The industry is confident that the sales momentum will continue even after the stamp duty rate cut ends by September 2022. Thus, in light of the low stamp duty charge, many home buyers are rushing to purchase and register properties before any further rise in home loan interest rates.