The Kolkata residential property market began 2026 with a notable pause, reflecting the seasonal ebb and flow typical of January after a busy December. According to Knight Frank India’s analysis of data from the Directorate of Registrations and Stamps Revenue, Government of West Bengal, the Kolkata Metropolitan Area (KMA) recorded 3,052 residential property registrations in January 2026, a 41% decline compared with January 2025.
While the year-on-year drop may seem steep, experts suggest this is more a reflection of short-term factors rather than a weakening market. The month-on-month comparison shows an even sharper fall of 45% from December 2025, underscoring the impact of the strong year-end transaction activity that tends to pull registrations forward.
Mid-Sized Apartments Take the Lead
A closer look at the types of properties changing hands reveals a clear shift in buyer preference. Apartments between 501 and 1,000 sq. ft accounted for 59% of all registrations in January 2026, up from 44% a year ago. Conversely, smaller units under 500 sq. ft saw their share fall to 30% from 52% in January 2025.
“This shift indicates a growing demand for mid-sized homes as buyers seek a balance between affordability and livable space,” says Shishir Baijal, Chairman & Managing Director of Knight Frank India. “The market is gradually evolving toward more practical living spaces, reflecting both lifestyle changes and long-term residential planning.”
The trend toward mid-sized units also aligns with developers’ increasing focus on catering to first-time buyers and mid-income segments, particularly in emerging peripheral areas around the city.
Understanding the January Dip
The January slowdown, according to market observers, is not unusual. “The sequential contraction of 45% in registrations represents a normalization after the year-end surge rather than a structural weakening of fundamentals,” Baijal explains.
High base effects, short-term delays in buyer decisions, and the time needed for administrative processes all contribute to this seasonal dip. Despite the slowdown, the underlying structural drivers of housing demand remain intact. Analysts believe that once deferred transactions from December close in the following months, registration activity is likely to stabilize and gradually regain momentum.
South Zone Leads the Way
The spatial distribution of registrations in January 2026 highlights an interesting trend: the South Zone of Kolkata emerged as the city’s most active market, capturing 43% of total apartment registrations. Key micro-markets such as Behala, Kasba, Sonarpur, and Thakurpukur contributed significantly to this surge.
Much of this activity is driven by peripheral locations catering to affordable and mid-segment residential projects. The South Zone’s dominance suggests a continued preference among buyers for areas that balance connectivity with cost-effective housing options.
The North Zone maintained the second spot, accounting for 33% of registrations. While it lagged behind the South Zone, activity in North Kolkata remained steady, supported by established residential pockets and increasing interest in redevelopment projects.
Developers and Buyers Adjust to the New Norms
As the new year unfolds, developers are recalibrating strategies to match evolving buyer preferences. Mid-sized apartments, particularly those in well-connected peripheral locations, are seeing heightened demand. Simultaneously, small units are gradually losing ground, indicating a shift in how families prioritize space over purely entry-level affordability.
For buyers, this means more choices and options for homes that offer a practical balance of space and cost. The temporary slowdown in registrations has also given prospective homeowners an opportunity to observe market trends and make informed decisions before committing to purchases.
Looking Ahead
Experts predict that as project pipelines gain momentum and pending transactions from December are executed, registration numbers are likely to recover in the coming months. The structural factors underpinning housing demand, rising urbanization, increased affordability, and targeted mid-segment supply which continue to support Kolkata’s residential real estate market.
In the meantime, market watchers will be keeping a close eye on how zones outside the traditional city core evolve, and whether the trend toward mid-sized units continues to shape the city’s housing landscape. With the South Zone already leading in activity, peripheral micro-markets could well be the key drivers of growth in 2026.
The January dip may have created a momentary pause, but for the Kolkata residential market, the broader trajectory remains on track. The focus now is on normalization, buyer confidence, and the gradual execution of deferred transactions—a combination likely to set the tone for the months ahead.
