Kolkata: Registration of homes falls 62% in 2021 but up by 51% since July

Registration of residential properties in the Kolkata region fell 62 per cent year-on-year in November to 1,140 units, but it rose by 79 per cent during the January-November period to 40,972 units, according to Knight Frank India.

The residential property registrations in Greater Kolkata in the 11-month period of 2021 stood at 40,972 units, of which 51 per cent were registered between July- November 2021 coinciding with the introduction of the stamp duty cut enforced since July 9, 2021.

"The 2 per cent stamp duty rebate has worked wonders for Kolkata residential real estate sector in the second half of the year and provided momentum to the residential sales. On a year-on-year (YoY) comparison, this rise translates to a sharp 79 per cent increase in residential properties being registered during the 11 month period of January to November 2021," the consultant said.

However, registration in November 2021 fell 62 per cent when compared with November 2020.

"This is the first time in the past five months that property registrations have declined YoY. There was a rush to register deals by October 2021, as the stamp duty cut window was supposed to close in that period. This would explain the lull in sales in November 2021, even after the extension of stamp duty cut window," the consultant said.

Moreover, Knight Frank India said it is possible that the buyers were not fully aware of the stamp duty cut extension in November as this announcement came during the Diwali break.

Kolkata-based Emami Realty Managing Director and Chief Executive Officer Nitesh Kumar said, "It is a good time for the realty sector in West Bengal. As a result of the extension of the stamp duty cut window, the real estate market of the state continues to benefit."

"Despite a slowdown in residential property registrations in November 2021 due to less registration in small units under 500 square feet, the sharp increase since July 2021 is encouraging for both developers and buyers moving forward," he said.

The registration of mid and luxury residential property along with plotted developments has been growing rapidly because of record-low home loan rates, discounts, and stamp duty reductions, Kumar said.