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In June, the Kolkata Metropolitan Area saw a record 25% increase in residential property registrations compared to the previous year. This surge occurred while a stamp duty discount was available. The state government will now end these benefits, including a 2% stamp duty reduction and a 10% circle rate cut, on July 1, 2024. Since these incentives began in July 2021, approximately 140,000 homes were registered. Despite the rebate ending, Knight Frank anticipates continued market growth due to strong demand. The company also reported new trends in the important zones, such as the South and North, within the city.
The Kolkata Metropolitan Area reported a record high number of registration of residential properties in June, 25% higher from the same period in the previous year. Around 4,292 residential properties were registered, when individuals could take advantage of the stamp duty discount in the state. Advertisement
The state government has declared that it will stop offering certain benefits, specifically a 2% reduction in stamp duty and a 10% decrease in the circle rate, starting on July 1, 2024. Knight Frank, a real estate consultancy company, published that around 1,40,000 homes were registered since the announcement of the benefits in July 2021.
Between January and June 2024, sales growth was high, and around 21,434 residential units were registered, which is 13% more than the registration record during the same period last year. In June 2024, the proportion of unit sizes up to 500 square feet increased to 42%, up from 36% in June 2023. Meanwhile, apartments ranging from 501 to 1,000 square feet continued to be the most popular, consistently accounting for 51% of all registrations in both June 2023 and June 2024.
On the other hand, the share of units above 1,000 sq. ft. decreased from 22% to 7% in this same timeframe. From February 2024, the fraction of this category went down to single digit percentages for the first time in the last four years. In June 2023, the south zone led the rankings for micro-market registrations, accounting for 57% of all apartment registrations in Kolkata.
According to data for June 2024, over the past year, the share of this important zone has decreased to 33%. The North Zone, which was second with a 16% share in June 2023, has now moved to the top with a 43% share in June 2024. The East Zone's share has also dropped from 16% in June 2023 to 10% in June 2024.
The South and North zones remain the most sought after areas for home purchasing due to their affordability, and these zones together account for the largest portion of apartment registrations. This activity is consistent with historical patterns.
Under new trends, the West Zone share rose from 8% in the last year to 15% in the current year and the portion of total apartment registrations in Rajarhat has decreased from 57% in June 2023 to 33% in June 2024. The share of other zones has largely stayed the same over the past year.
Abhijit Das, senior director for the East at Knight Frank said that despite the removal of the stamp duty incentive, the residential market is expected to keep growing due to its strength and existing demand, though the growth might be slower. Sushil Mohta, president of Credai West Bengal, called on the state government to lower the stamp duty because it's higher in West Bengal compared to many other states.
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