Aided by the 2 percent stamp duty rebate, 4,683 apartment property sales documents were registered in Greater Kolkata or Kolkata Metropolitan Area (KMA) in October 2021, a report by Knight Frank has said.
In October 2021, the number of residential sales deeds registered remained a little shy of September 2021, but the YoY growth of 87 percent surpassed the growth recorded in the previous month. In September 2021, as many as 4,846 apartment sales documents were registered in Greater Kolkata.
In terms of micro-markets, North dominated the percentage share of apartment sales deeds registered with a 43 percent share in monthly registrations. South emerged as the second best performing micro-market with a 34 percent share of the pie. The peripherals’ residential growth story continues to advance as demand for new residential products in these micro-markets remains strong compared to others.
Unlike the past trend, when the Durga Puja festivities witnessed a lack of action in commercial activities in Kolkata, the prospect of savings on account of stamp duty cut led homebuyers to flock to registration offices in Oct 2021. The rebound in confidence towards homeownership is indicative of increasing buyer demand which is vital for the growth of the real estate sector.
Given the homebuyers' response towards this sop, the West Bengal state government has extended the stamp duty cut window by additional three months until January 31, 2022. This has been done with a view to combat the economic slowdown situation in the state due to the COVID-19 pandemic and provide relief to homebuyers.
The stamp duty cut benefit will remain available for documents (except the documents for amalgamation of contiguous land) presented for registration before the registering authority by this date. The 10 percent reduction in circle rates will also continue till January 31, 2022, which will further incentivize homebuyers to sign the deals.
“The recent buoyancy in the residential market is a direct result of the stamp duty cut introduced in July 2021 by the West Bengal government. Encouraged by the recent extension of the stamp duty rebate till January 31, 2022, we are confident that the ongoing festive season will see greater momentum from home buyers. Demand stimulants such as that taken by the state government have manifold impact, not only on the residential real estate sector but also on the economy at large. With sustained momentum in buying we expect supply to also pick pace leading to more employment and greater prosperity,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.