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In March 2024, apartment registrations in the Kolkata Metropolitan Region (KMR) increased by 17% year-on-year, totaling 3,936 units, indicating a preference for budget-friendly homes. Notably, apartments under 500 square feet rose to 45%, reflecting a 21-point increase from the previous year. While units between 501 and 1,000 square feet still hold a significant share at 48%, affordability remains paramount. Abhijit Das of Knight Frank India emphasises the need for large, affordable projects with good connectivity. The real estate sector pushes for a permanent stamp duty rebate extension to sustain sales momentum, while infrastructure development enhances market appeal, especially in South and North zones known for affordable options.
According to a recent report by Knight Frank India, apartment registrations in the Kolkata Metropolitan Region (KMR) rose by 17% year-on-year (YoY) in March 2024, reaching 3,936 units. This significant growth indicates a growing taste for homes in the city, particularly among budget-conscious buyers. Advertisement
The report highlights a fascinating shift in buyer preferences. The share of apartments under 500 square feet has shot up from 24% in March 2023 to 45% in March 2024. This represents an increase of over 21 percentage points, signifying a strong demand for smaller, more affordable options. Apartments sized between 501 and 1,000 square feet, though still holding a significant share (48%) of the market, have seen a slight decrease compared to the previous year (down from 52%). These trends paint a clear picture: affordability is a top priority for Kolkata homebuyers.
Industry experts believe this trend is likely to continue. Abhijit Das, Senior Director, East India for Knight Frank India, commented that the data confirms that the vast majority of apartments sold in Kolkata are below 1,000 square feet. He emphasised the need for stakeholders, including developers and government agencies, to work together to create large, affordable land parcels with good connectivity and social infrastructure. Developing such projects will be crucial to meet the growing demand for budget-friendly housing options. Mr. Das's suggestion highlights a potential solution for future market growth.
The real estate sector in Kolkata is pushing for a permanent extension of the stamp duty rebate, which is believed to be a major driver of the current sales momentum. A stamp duty rebate reduces the overall cost of property registration, making homeownership more accessible. A permanent extension of this benefit could further bolster the market and encourage potential buyers to take the plunge.
While affordability is a key driver, infrastructure development also plays a crucial role in shaping the Kolkata housing market. The expansion of the Kolkata Metro and the development of new arterial roads are improving connectivity within the city, making previously less-developed areas more attractive to homebuyers. Investors are also keeping a close eye on upcoming infrastructure projects, anticipating potential price appreciation in these areas.
The report also sheds light on the most popular zones for apartment registrations. In March 2024, the South Zone led the pack with a 44% share of the total, followed by the North Zone at 30%. These two zones are known for offering a wider range of affordable housing options, which aligns perfectly with the current market trends. The West and East zones saw marginal increases, while the Central Zone's share remained unchanged.
The Kolkata real estate market is experiencing a positive shift, fueled by a strong demand for affordable housing options. If the stamp duty rebate is extended, developers cater to the evolving needs of buyers, and crucial infrastructure projects are completed, the market is likely to see continued growth in the coming months.
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