Kolkata Witnesses Record 4,200 Home Registrations in June Due to Stamp Duty Rebate

Kolkata’s real estate market experienced a remarkable surge in June 2024, with a total of 4,292 residential properties registered in the Kolkata Metropolitan region. This figure marks the highest level of registrations for the month of June in the past five years, reflecting a 25% increase compared to the 3,437 units registered during the same period last year. This growth comes as the West Bengal government prepares to withdraw the stamp duty rebate and reductions in circle rates, which have been in effect since 2021 to stimulate the real estate sector following the economic impact of the Covid-19 pandemic.

Government Initiatives to Support Homebuyers

In an effort to boost the housing market, the West Bengal government introduced a 2% reduction in stamp duty and a 10% cut in circle rates back in 2021 during COVID 19 pandemic. These measures aimed to raise the financial burden on homebuyers during a challenging economic period, including the flat registration cost in Kolkata. The government extended these relief initiatives multiple times, with the most recent extension valid until June 30, 2024. As a result, Kolkata has seen a significant uptick in home registrations since these incentives were introduced, with a total of 1.4 lakh homes registered since July 2021. 

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Growth Trends and Market Dynamics

Data from real estate consultancy firm Knight Frank reveals that the residential property registrations in June 2024 also represented a 27% month-on-month increase over May 2024. This growth comes after consecutive declines in registrations during March, April, and May. Between January and June 2024, 21,434 residential units were registered, reflecting a 13% increase from the same period last year.

A closer look at the data indicates a shift in preferences regarding apartment sizes. The share of units measuring up to 500 sq. ft. rose from 36% to 42% compared to June 2023. Meanwhile, apartments ranging from 501 to 1,000 sq. ft. remained the most popular, comprising 51% of total registrations. Conversely, the proportion of larger units over 1,000 sq. ft. saw a significant decline, dropping from 22% to 7% over the same period. This decline marks the first time in four years that the share of larger units fell into single digits since February 2024.

Regional Insights and Trends

In terms of micro-markets, the south zone, which dominated the registration landscape with a 57% share in June 2023, has seen its share decrease to 33% in June 2024. In contrast, the north zone, which held a 16% share last year, has surged to the forefront with a 43% share of total registrations. The east zone has also experienced a decline, dropping from 16% to 10% in its share.

Both the south and north zones continue to lead in home-buying activity, primarily due to the availability of affordable housing options, which has made navigating the property registration charges in Kolkata more manageable for buyers. The west zone has seen its share increase to 15%, up from 8% a year ago. Notably, the share of Rajarhat in the overall registration tally has fallen from 57% in June 2023 to 33% in June 2024.

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Kolkata’s record-breaking 4,200 home registrations in June 2024 can be attributed to the stamp duty rebate and circle rate reduction provided by the West Bengal government. Homebuyers, eager to take advantage of these incentives before their expiration, contributed to this surge in property transactions. With changes expected in the flat registration cost in Kolkata, the demand for affordable housing continues to rise.

As the real estate market evolves, the role of the best real estate developers in Kolkata becomes even more critical. These developers are at the forefront of delivering quality homes that cater to a wide range of buyers, from affordable options to premium properties, ensuring Kolkata remains an attractive destination for homeownership. The combination of government initiatives and the expertise of top developers sets the stage for continued growth in the city’s real estate sector.