First introduced in the state budget in July 2021 to provide support to the real estate industry amidst the pandemic, the extension of the rebate has ensured a steady rise in sale and registration of properties. “This key incentive continues to provide stimulus to commercial activities and incentivise homebuyers,” said Credai Bengal president Siddharth Pansari.
In all, 102,743 apartments have been registered in KMA since the introduction of the incentive scheme 26 months ago. The incentives that are in place till this month end, offer 2% rebate in stamp duty and 10% reduction in circle rate. However, after three consecutive months of uptick in volume between May and July, August 2023 witnessed a 11% month-on-month (MoM) decline in volume. On a year-on-year (YoY) basis too, August 2023 represents a 42% decline over August 2022. The registration count for August 2023 is 3,605 apartments.
The data encompasses transactions in both primary (fresh sale) and secondary (re-sale) markets for all residential apartments throughout all periods. Thakurpukur, Sonarpur and Rajarhat emerge as the top three locations for home registrations this August with units sized between 500-1,000 sqft command nearly half of total registrations.
In August 2023, apartments ranging from 501 to 1,000 sq ft constituted 48% of total registrations compared to 49% during the year ago period. The share of smaller unit sizes, up to 500 sq ft comprised 27% in August 2023 while it commanded a 25% share in August 2022. The repo rate pause has helped in gradual bounce back of demand in this category in 2023. Units sized above 1,000 sq ft comprised one-fourth share in total registrations.
Knight Frank India senior director (east) Abhijit Das said, “Prevalence of home buying sentiment continues to be visible in property documents registered in Kolkata, despite moderation in August 2023. Homebuyers continue to prioritize home purchases to avail ongoing benefit of a low stamp duty levy. With the buyers’ profile largely comprising of end-users, Kolkata remains a price sensitive market driven by value. Therefore, continued stability in interest rates and the ongoing benefits of stamp duty will drive demand, especially in the affordable and mid-segment properties.”
During the month, the south zone dominated the micro-market with 59% share of Kolkata’s total apartment registrations, up from 32% a year ago. In contrast, the share of north zone declined from 40% in August 2022 to 10% of total registrations a year later. The top-five locations in August 2023 — Thakurpukur, Sonarpur, Rajarhat, Behala and Jadavpur — comprised one-third of August 2023 apartment registration volume in Kolkata.
Published On Sep 28, 2023 at 12:00 PM IST
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