Knight Frank, India's top real estate consultancy, reported that 102,743 apartments have been registered in Kolkata Metropolitan Area (KMA) since the introduction of stamp duty rebate in 2021. More than two years after this support measure was introduced in the state budget, this key incentive continues to provide stimulus to commercial activities and incentivise homebuyers even after the pandemic. After three consecutive months of uptick in volume between May and July, August 2023 witnessed a 11% month-on-month (MoM) decline in volume. On a year-on-year (YoY) basis too, August 2023 represents a 42% decline over August 2022.
The data encompasses transactions in both primary (fresh sale) and secondary (re-sale) markets for all residential apartments throughout all periods.
In August 2023, apartments ranging from 501 to 1,000 sq ft constituted 48% of the of total registrations compared to 49% during the year ago period. The share of smaller unit sizes, up to 500 sq ft comprised 27% in August 2023 while it commanded a 25% share in August 2022. The repo rate pause has helped in gradual bounce back of demand in this category in 2023. Units sized above 1,000 sq ft comprised one-fourth share in the total registrations, which is at par with the year ago period. The share of larger homes continues to hold a substantial share in demand as shift in buyer preferences since Covid continue to influence buying decisions.
Abhijit Das, Senior Director, East, Knight Frank India, said, "Prevalence of homebuying sentiment continues to be visible in property documents registered in Kolkata, despite moderation in August 2023. Homebuyers continue to prioritize home purchases to avail ongoing benefit of a low stamp duty levy. With the buyers’ profile largely comprising of end-users, Kolkata remains a price sensitive market driven by value. Therefore, continued stability in interest rates and the ongoing benefits of stamp duty will drive demand, especially in the affordable and mid-segment properties.
During August 2023, the South Zone dominated the micro-market with an impressive 59% share of Kolkata’s total apartment registrations. In August 2022, the South Zone accounted for only 32% of the total registrations. However, the share of North Zone has declined from 40% in August 2022 to 10% of total registrations in August 2023. As this zone is populated with affordable housing projects, moderation in its share has been witnessed due to the demand in this category in the past one year. In August 2023, the share of Central and Rajarhat zones increased to 7% and 6% respectively. Both these zones have apartment options in the mid-segment and high-end segments for homebuyers where stable demand has prevailed so far.
The top 5 locations comprised one-third of August 2023’s apartment registration volume in Kolkata.
