Property Registration in Kolkata slips down by 13% YoY in July 2024: Knight Frank Report

The data shared by  Directorate of Registrations and Stamps Revenue, Government of West Bengal informed that the property registration in Kolkata has sharply declined by 13% year-on-year in July 2024, just followed by  government’s decision of withdraw the 2% stamp duty benefits, and changing of the circle rates.

The data showcased that, as many as 3506 apartments were registered in Kolkata Metropolitan Region in July 2024 compared to 4036 units last year.

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. 

According to Knight Frank's analysis, apartment registrations in July 2024 experienced a 13% decline year-on-year and an 18% drop compared to June 2024. During the three-year period from July 2021 to June 2024, which saw phased extensions of stamp duty remission, the city recorded 143,864 residential property registrations.

Compared to July 2023, the proportion of units up to 500 sq ft increased from 27% to 45% by the end of July 2024. In contrast, the share of apartments sized between 501 and 1,000 sq ft decreased from 51% to 47% over the same period. Additionally, the proportion of units larger than 1,000 sq ft fell significantly from 22% to 8%. Unlike trends in other Indian cities, the registration of units over 1,000 sq ft has sharply declined over the past year, especially since February 2024.

The data analysis also showed during July 2024, North Zone has secured the top position having a moderate share of 34%, while the south zone is holding a share of 33% share in this month. Due to the availability of affordable options, these zones account for the majority of apartment registrations in both periods. The East zone’s share held steady at 11% in July 2024, unchanged from the previous year.

Abhijit Das, Senior Director East, Knight Frank India said, "The Kolkata residential market, which benefited from incentives, has responded predictably to the removal of stamp duty benefits and changes in circle rates. We anticipate that the decline in registrations will stabilize in the coming months as buyers adjust to these changes. With the festive season approaching, we expect to see a rebound in registration numbers. Additionally, the country’s overall economic growth and stability will contribute to maintaining a healthy market momentum in the near future."