Greater Kolkata sees 40% decline in property registrations over Omicron outbreak

Of the various configurations, homes in the range of 47-92 sq m (501-1,000 sq ft) accounted for 46 percent of the total registrations in January 2022.

The decline for apartments up to 46 sq m (0-500 sq ft) was approximately 25 percent year-on-year, which was the lowest across categories. Unit sizes of 49-92 sq m (500-1,000 sq ft) and 93 sq m and above (1,001 sq ft and above) registered 36 percent and 34 percent on-year de-growth.
Also Read: Registration of homes in Kolkata up 64% in 2021; down 10% in Dec: Knight Frank

In terms of micro-markets, peripheral micro-markets continue to remain popular among homebuyers. North Zone, which accounted for 28 percent or second highest share in January 2021 saw its share increase to 36 percent in January 2022 to take top position among micro-markets. This is the first time in the past three months that North Zone’s share has increased to the highest in apartment registrations, the data showed.

South Dum Dum, Baranagar, Barasat and Bidhannagar witnessed increased momentum in the apartment registrations front in the month gone by.  The South Zone, too, saw its share expand from 18 percent to 29 percent between the two Januaries.

The West Zone, on the other hand, saw its share shrink from 32 percent to 6 percent during the same period. Lack of new supply in the far-off western peripherals also led to a low percentage of documents being registered.

“For nearly six months now, the 2 percent stamp duty rebate has been the key support measure to provide stimulus to Kolkata’s residential real estate market. The extension of the stamp duty rebate till March 31, 2022 by the Government of West Bengal will provide a further relief to homebuyers, who may have had to put their buying decisions on hold due to the recent third wave of COVID apart from motivating new buyers to take advantage of this reduction.

"We expect the extension will encourage developers to continue with their incentives and sops for new home purchases,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

Infrastructure development focused Union Budget 2022-23 and continued support for affordable housing will also help catalyse latent demand in the months to come.

With two more months left to reap the benefits of a reduced stamp duty and rate of declining infections, Kolkata’s real estate market will benefit from these growth-oriented measures.