by THO
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Kolkata property registrations declined by 13% year-on-year in July 2024 after the government decided to withdraw the 2% stamp duty benefits and change the circle rates, according to data shared by Directorate of Registrations and Stamps Revenue, Government of West Bengal.
As many as 3506 apartments were registered in Kolkata Metropolitan Region in July 2024 compared to 4036 units last year, the data showed.
This is the first month after the state government decided to withdraw the incentives i.e. 2% stamp duty cut and 10% reduction in circle rate.
On a year-on-year (YoY) basis, July 2024 apartment registrations represent a 13% degrowth. On a month-on-month (MoM) basis, an 18% decline over June 2024 registrations was witnessed, according to an analysis by Knight Frank.
During the three-year period of phase wise extension of the remission of stamp duty between July 2021 to June 2024, 143,864 residential properties were registered in the city, it showed.
500 – 1,000 sq ft apartments record highest share across all unit size categories
As compared to July 2023, the share of unit sizes up to 500 sq ft scaled up from 27% to 45% at the end of July 2024.
Apartments ranging in size from 501 to 1,000 sq ft witnessed their share taper from 51% to 47% during the same period.
However, the share of unit sizes over 1000 sq ft reduced from 22% to 8% when compared between July 2023 and July 2024. Unlike the trends unfolding in other Indian cities, the registration of units sized above 1,000 sq ft has shrunk drastically in the past one year, particularly since February 2024.
Also Read: West Bengal govt withdraws 2% stamp duty cut for homebuyers; 10% circle rate relief
In July 2024, the top position in apartment registration tally was still held by North Zone, albeit with a moderate share of 34%. The South Zone follows closely with a 33% share in this month. Due to the availability of affordable products, these zones together constitute the lion’s share of the apartment registrations across both periods. East zone’s share remained stable at 11% in July 2024 as compared to the same time last year, the analysis showed.
In line with past trends, Rajarhat, also witnessed its share remain steady at 10-11% between both periods. The West zone witnessed its share moderate from 8% to 6% in a year.
A similar trend was witnessed in Central Kolkata too.
“The Kolkata residential market, having seen the benefits of incentives, has reacted as expected to the withdrawal of the stamp duty benefits and change in circle rates. The decline in registrations is expected to normalize in the subsequent months as the buyers’ sentiments align to the change and we can hope to see a revival in registrations numbers soon, especially as we are at the cusp of the festive season. The overall economic growth and stability of the country will play its part in keeping the momentum of the market healthy in the coming months,” said Abhijit Das, Senior Director East, Knight Frank India.
Also Read: Here’s how metro projects in multiple cities will impact real estate markets
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