Registration of homes in Kolkata up 64% in 2021; down 10% in Dec: Knight Frank

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The residential property registrations in Greater Kolkata in the 12-month period of 2021 stood at 44,940 units, recording a growth of 64% compared to the previous year but the number dropped 10 percent on year in December to 3,968 units, said real estate consultancy Knight Frank.

Registration of homes in December 2020 stood at 4,422 units.

As expected, 56% of these units were registered since the introduction of the stamp duty cut in July 2021.

The registration data is for residential sales documents registered and included transactions in both the primary and the secondary market. The 2% stamp duty rebate has resuscitated Kolkata’s residential real estate sector in the second half of the year as the city battled COVID-19 induced economic uncertainties, the consultant said.

After a brief lull in November 2021 due to festivals, there has been a significant recovery in housing registrations as per December 2021 statistics. December 2021 recorded a 248% month-on-month (MoM) growth in the number of residential sales deeds registered.

Whilst there is still a 10% year-on-year (YoY) decline compared to December 2020, there has been a strong growth on a MoM basis. The stamp duty cut extension has been acting as a catalyst for transaction closures, it said.

With the registration offices operational and the extension of stamp duty cut window to  January 31, 2022 being known to prospective homebuyers, the buoyancy is back in the market. In Q4 2021, residential sales registrations largely remained at par with Q4 2020. In Q4 2021, the lull in November 2021 was balanced by the October 2021 numbers and the subsequent recovery in December 2021, culminating in only a minor 2% YoY decline.

In terms of unit sizes, apartments up to 46 sq m (0-500 sq ft), witnessed 62% YoY degrowth in December 2021. Unit sizes of 47-92 sq m (501-1,000 sq ft) and 93 sq m and above (1,001 sq ft and above) registered 67% and 73% YoY growth, respectively.

Looking at the yearly trend in 2021 also presents a similar picture, with apartments in 47-92 sq m (501-1,000 sq ft) and 93 sq m and above (1,001 sq ft and above) categories witnessing a substantial 209% and 230% YoY growth, respectively.

Knight Frank India Chairman and Managing Director Shishir Baijal said the lower stamp duty regime ends this month.

"The possible mobility restrictions due to rising Omicron virus cases will be a factor impacting the property registration activity in the first month of the new year," he added.