Registration of residential properties in Kolkata metropolitan area jumped more than twofold to 15,160 units during July-September period mainly driven by stamp duty reduction by the state government, according to Knight Frank. Property consultant Knight Frank said that a total of 15,160 residential sales deeds were registered in Kolkata metropolitan area during July-September 2021, up 122 per cent from the corresponding period of last year.
Registrations in July, August and September increased year-on-year by 39 per cent, 268 per cent and 80 per cent, respectively. As many as 7,316 units were registered in August 2021, the highest monthly sales this year. The West Bengal government announced a 2 per cent rebate on stamp duty for registration of all documents (except the documents of amalgamation of contiguous land) in its state budget in July 2021.
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The stamp duty cut benefit is available for documents which complete registration between July 9, 2021 to October 30, 2021, the consultant said. The stamp duty cut coupled with a 10 per cent reduction in circle rates has brought fence sitters back to the market, it added.
Swapan Dutta, Senior Branch Director, Kolkata, Knight Frank India, said the stimulant announced by the state government was critical for the growth of the market. "We expect this move will further propel fence sitters to make their purchase decisions, he added.
In the first nine months of the calendar year of 2021, 35,149 residential sales deeds were registered, marking a 102 per cent annual increase over the same period in 2020. Commenting on the rise in housing demand, Emami Realty MD and CEO Nitesh Kumar said the reduction in stamp duty and circle rates have spur the registrations in Kolkata by 2-3 times compared to last year.
"The demand for residential real estate has also risen owing to the pentup demand and lowest home loan interest rates in two decades. The affordability index has risen due to this," he said. "We have also seen a lot of demand from NRIs who were fence sitters and now taking active decisions for their future security," Kumar said.
The Emami CEO hoped that the state government may extend the 31st October deadline, which would further improve the real estate sentiment in the state. "With the comfortable win in the recent elections and stable government, Bengal is now seen as a great investment destination which will further catalyse real estate scenario in the state," Kumar said.
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