Knight Frank, India's top real estate consultancy, reported a significant upswing in residential apartment registrations in the Kolkata Metropolitan Area (KMA). In June 2023, 3,437 apartments were registered, marking a remarkable 13% year-on-year growth compared to June 2022. This positive shift comes after three consecutive months of declining YoY growth from March to May 2023, signifying a renewed sense of activity and optimism among homebuyers.
Since the stamp duty cut announcement in July 2021, a total of 95,102 residential apartments have been registered in Kolkata between July 2021 and June 2023. Notably, June 2023 recorded the highest number of apartment registrations for the same month in the past four years. The data encompasses transactions in both primary (fresh sale) and secondary (re-sale) markets for all residential apartments throughout all periods.
In June 2023, apartments ranging from 501 to 1,000 sq ft constituted 42% of total registrations, aligning closely with the trend observed a year earlier. However, the smaller unit sizes, up to 500 sq ft, which had experienced a drop to 27% in June 2022 due to high interest rates impacting the affordable segment, are now bouncing back as the interest rate cycle has been paused. These smaller units represent 36% of June 2023 registrations, showing a remarkable 49% YoY and 57% MoM upswing. On the other hand, unit sizes larger than 1,000 sq ft witnessed a decline in their share by 3 percentage points compared to the same period last year.
Abhijit Das, Senior Director, East, Knight Frank India, said, "Kolkata is one of the only major markets in India that has continued its stamp duty benefits to the buyers across segments. While its main beneficiaries are buyers of the secondary market and ready-to-move-in inventory of the primary market, as the benefit accrues immediately, it has led to strong buyer sentiments even in the primary sales market of Kolkata. With the buyers’ profile comprising of end-users, Kolkata remains a price sensitive market driven by value. Therefore, further stability in interest rates and the ongoing benefits of stamp duty will continue to fuel demand, especially in the affordability and mid-segment properties.”
In June 2023, the South Zone dominated the micro-market with an impressive 57% share of the apartment registration pie. Thakurpukur, Bishnupur, and Jadavpur experienced the highest number of registrations within this zone. Interestingly, the North Zone held the highest share a year ago with 52%, but it has now drastically reduced to just 16%, equivalent to the East Zone's share during the same period. However, it's important to note that these are only monthly patterns, subject to change based on the upcoming month's activity.
On a positive note, the Central Zone saw a significant increase in its share, accounting for 6% of the total volume in June 2023 compared to a mere 2% in June 2022. Hare Street, Shakespeare Sarani, and Amherst Street were the top locations for apartment registrations in the Central Zone.
