Property sales registration surged by 17% in a month and 2nd highest this year

Property sales registrations in July 2023 surged by 17% over the previous month, the fourth consecutive month of positive growth after a blip in April. Since the announcement of the stamp duty cut in July 2021, nearly a lakh residential apartments have been registered in greater Kolkata. According to real estate consultancy firm Knight Frank India, 4,036 units were registered last month, up from 3,437 units the previous month. This is also the second-highest home registration figure this year. The count was higher only in January when 4,178 units had been registered. Credai officials attributed the spike in registrations to the enforcement of RERA that had prompted serious customers to complete the registration along with signing of the agreement and also advancement of transactions as the month of ‘Bhadra’ in Bengali calendar overlapping with August and September is considered inauspicious for such big purchases. “Also, the government has announced the extension of the 2% reduction in stamp duty till September 2023,” said Credai West Bengal president, Sushil Mohta.

July 2023 registration figures were, however, lower by 40% over previous July when 6,709 units had been registered. In the past two years since the stamp duty cut announcement, 99,147 residential apartments have been registered in Kolkata. The data encompasses transactions in both primary (fresh sale) and secondary (re-sale) markets for all residential apartments throughout all periods.

“Kolkata is the only major market in India that has continued with its stamp duty benefits to the buyers across segments. With the buyers’ profile consisting of end-users, Kolkata remains a price-sensitive market driven by value. Therefore, further stability in interest rates and the ongoing benefits of stamp duty will continue to fuel demand, especially in the affordable and mid-segment properties,” said Knight Frank India senior director (east), Abhijit Das.

In July 2023, the north zone dominated the micro-market with 40% share of Kolkata’s total apartment registrations. Baranagar, Dum Dum and peripheral areas near the airport witnessed large volume in terms of registrations within this zone. However, the south zone’s share reduced from 33% in July 2022 to 27% in July 2023, though still maintaining the second rank in the city.