Real estate in Kolkata - rising trends to soar higher in 2022
By Pratik Balasaria

While real estate in Kolkata saw a dip in November 2020, the registration of residential properties in Kolkata rose by 79% during the January-November period to 40,972 units as per a survey carried out by Knight Frank India

Residential property registrations in the Greater Kolkata region during the 11 month period of January 2021 to November 2021 stood at 40,972 units. The real estate in Kolkata registered 51% of these between July 2021 to November 2021. This coincided with the introduction of the stamp duty cut enforced from July 9, 2021. The reason for this spike in property sales and registrations in real estate in Kolkata is primarily due to the twin sops announced for homebuyers in this year’s state budget. 

Real estate projects in Kolkata have been seeing negative growth in the last three years. Thus this all time high record sales come as a hopeful respite for the industry. With 3 more months of sops to follow, there are expectations of property registrations to continue to rise. 

What twin SOPS did the state budget announce?

real estate in Kolkata

The government announced a 2% cut in stamp duty and a 10% reduction in circle rates for registration of properties. These two measures helped real estate developers in Kolkata pick up sales. The industry is forecasting all-time record sales in the real estate industry this year.

Sales have been unexpectedly brisk since July, when the government announced a 2% cut in stamp duty and a 10% reduction in circle rates for registration of properties at Kolkata. 

A high registrations of real estate in Kolkata seen

The directorate of registration and stamp revenue reported 19,843 registrations between July and October. For comparison, the same period last year saw just 9,351 registrations. Reports predict the registrations to reach 50,000 in the next three months. This is a projected figure. 

The chairman of one of the top real estate companies in Kolkata, Sanjay Jain shared his thoughts. He said that the 2021-2022 fiscal year is all set to be the best for Kolkata. As per his statement, the registration figures till October were a mix of new units sold. These figures also included homes and apartments that had been purchased earlier that hadn’t been registered. 

However November onwards, new home sales will mostly drive this momentum. This is because customers are ready to avail themselves of the stamp duty cut.

Data for the July-September quarter in the real estate in Kolkata

The sales data of new homes for the July-September quarter shows that sales during this quarter reached 6,861 units. This is almost double of the 3,921 units in the corresponding period last year. Compared to the same period in 2019, it is an increase of almost 125%.

What has driven this buoyancy of real estate in Kolkata?

real estate in Kolkata

Real estate builders in Kolkata have attested that this buoyancy of Kolkata’s real estate market correlates directly to the stamp duty cut. Measures taken by the government have had a manifold impact. These primarily refer to the twin sops of a 2% cut in stamp duty and 10% reduction in circle rates for registration of properties. This has had a positive impact not only on the residential real estate sector in Kolkata but also on the economy at large. This sustained momentum in buying will also positively affect the supply, leading to more employment and greater prosperity.

In which region of Kolkata did more registrations take place?

More registrations happened in north Kolkata – close to 43%, while south Kolkata saw 34% registrations. In terms of unit size, apartments over 500 sq ft saw a 26% year on year growth. Which are primarily 2 bhk flats in Kolkata and 3 bhk flats in Kolkata. In the 500sq ft-1,000sq ft category, 2,275 units were registered this October, up from 631 units last year. In apartments sized over 1,000sqft, 1,227 units were registered in October, up from 341 units registered in October 2020. 

These measures have also allowed real estate developers in Kolkata to raise prices on properties without passing on the high prices to buyers. While the last few years have been extremely challenging for real estate in Kolkata, these measures have given much-needed respite. The star government catalyzed the SOPs and aided the low home loan interest rates as well as pent up demand, which was needed for West Bengal’s growth. 

Another positive side effect has been that these high sales have also reduced inventory. The high inventory was beginning to be a cause of worry for builders. They have been able to hire manpower again and reinstate salaries. 

FAQs

What were the twin SOPS announced during the state budget for real estate in Kolkata?

The government announced a 2% cut in stamp duty and a 10% reduction in circle rates for registration of properties. These two measures helped real estate developers in Kolkata pick up sales. The industry is forecasting all-time record sales in the real estate industry this year.

Sales have been unexpectedly brisk since July, when the government announced a 2% cut in stamp duty and a 10% reduction in circle rates for registration of properties in Kolkata. 

What is the sales data for the July-September quarter?

The sales data of new homes for the July-September quarter shows that sales during this quarter reached 6,861 units. This is almost double of the 3,921 units in the corresponding period last year. Compared to the same period in 2019, it is an increase of almost 125%.

In which region of Kolkata did more registrations take place?

More registrations happened in north Kolkata – close to 43%. This was followed by South Kolkata that saw 34% registrations.

What have been the positive side effects of these high sales?

While the last few years have been extremely challenging for real estate in Kolkata, these measures have given much needed respite. It was catalysed by the star government sops and aided by low home loan interest rates as well as pent up demand, was needed for West Bengal’s growth. Another positive side effect has been that these high sales have also reduced inventory. The high inventory was beginning to be a cause of worry for builders. They have been able to hire manpower again and reinstate salaries. 

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