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Knight Frank, India's premier real estate consultancy, has released a recent report showcasing the impact of the stamp duty rebate introduced in 2021 in the Kolkata Metropolitan Area (KMA). According to the report, a staggering 102,743 apartments have been registered in KMA since the implementation of this crucial incentive.
This stamp duty rebate, which was part of the state budget, has continued to fuel commercial activities and incentivize homebuyers, demonstrating resilience even in the face of the pandemic. The report highlights that after experiencing three consecutive months of increased registration volumes from May to July, August 2023 witnessed an 11% month-on-month decline in volume. Moreover, when compared to August 2022, August 2023 marked a significant 42% year-on-year decline in apartment registrations.
The data analysed in the report encompasses transactions in both the primary (fresh sale) and secondary (re-sale) markets for all residential apartments across various time periods.
In August 2023, apartments ranging from 501 to 1,000 sq ft constituted 48% of the total registrations, only slightly down from 49% during the same period the previous year. Smaller unit sizes, up to 500 sq ft, accounted for 27% of registrations in August 2023, compared to a 25% share in August 2022. The report attributes the rebound in demand for these smaller units to the pause in the repo rate. Apartments sized above 1,000 sq ft maintained a one-fourth share in total registrations, consistent with the previous year. The data suggests that larger homes continue to hold a substantial share of demand, driven by shifts in buyer preferences influenced by the ongoing pandemic.
Notably, during August 2023, the South Zone emerged as the dominant micro-market, accounting for an impressive 59% share of Kolkata's total apartment registrations. In August 2022, the South Zone had contributed only 32% of the total registrations. Conversely, the share of the North Zone declined from 40% in August 2022 to just 10% in August 2023, reflecting a decrease in demand for affordable housing projects in this region over the past year. In August 2023, the Central and Rajarhat zones saw their shares rise to 7% and 6%, respectively. Both of these zones offer apartment options in the mid and high-end segments, where stable demand has persisted.
The report also noted that the top 5 locations accounted for one-third of all apartment registrations in Kolkata in August 2023, underscoring their significance in the city's real estate landscape.
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