The 2% stamp duty rebate has worked wonders for Kolkata residential real estate sector in the second half of the year and provided momentum to the residential sales with more than half (51%) of these units registered between July 2021 and November 2021,said Knight Frank India, the leading real estate consultancy in the country.
“Kolkata’s real estate market continues to benefit from the stamp duty cut window extension. Though the pace of residential property registrations slowed in November 2021, the sharp y-o-y rise since July 2021, is encouraging for both developers and buyers going forward,” said Shishir Baijal, Chairman and Managing Director.
Due to record-low home loan rates, discounts and stamp duty reductions, registration of mid and luxury residential property transactions in Kolkata has continued to expand at a rapid pace.
The original stamp duty reduction policy, intended to boost demand for residential real estate, was supposed to last until October 30.
However, despite the encouraging cumulative numbers, the month of November 2021 registered a YoY degrowth of 62% when compared with November 2020. This is the first time in the past five months that property registrations have declined YoY.
“We are hopeful that the next three months will see more deals being sealed in Kolkata’s residential segment as prices remain stable and the interest rates continue to be low. This is an opportune time for buyers to execute transactions before there is any upward revision in prices by developers as stamp duty cut window has been extended till January 31, 2022,” said Baijal.
In terms of unit sizes, apartments up to 500 sq ft, witnessed 81% y-o-y degrowth in November 2021, which is the highest across all size brackets. Unit sizes of 501-1,000 sq ft and 1,001 sq ft and above registered 41% and 25% YoY degrowth respectively.
“Whilst there has been a decline in this size bracket too, it is interesting to note that bigger apartments remained the flavour of the month even when overall volumes are low. This is also indicative of the ongoing trend of end-users leaning towards bigger apartments as witnessed since the start of the pandemic as work and study requirements take priority in home ownership preferences,” said Knight Frank.
Going forward, the extension of stamp duty cut to 31st January 2022 will help channelize incremental demand in the residential real estate sector. With developers citing high input costs and intent to review selling prices, end-users are likely to take homebuying decisions while the rebate lasts.