Kolkata witnessed increase of 61% in Home Registration since stamp duty sop

Kolkata: Registration of residential sales agreements increased by 7 percent in December 2022 compared to the previous month.

Since the introduction of the stamp duty rebate by the state government in July 2021, registration figures have increased by 61% in the last 18 months compared to the last 18 months prior to that.

However, compared to December 2021, the number of registrations was 17% lower in December 2022. Homes under 500 square feet were hardest hit, with registrations declining 33% in a year. According to developers, the government’s announcement to extend the lower stamp duty rate and the rise in home loan interest rates were the two factors that contributed to the decline.

According to real estate consultancy firm Knight Frank, Kolkata Metropolitan Area reported registrations of 3,274 sales in December 2022 which is lower than November 2022, when 3,047 residential sales agreements were registered. It was considerably lower compared to the count of December 2021, when 3,968 agreements were registered.

Since the initial stamp duty cut announcement in July 2021, more than 76,000 residential properties have been registered in the city between July 2021 and December 2022. In the previous 18 months, 47,317 units had been registered.

Half of all registrations in December 2022 were for apartments between 501 and 1,000 square feet. The percentage of larger units measuring more than 1,001 square feet was 29%. 21% of the total were smaller units with up to 500 square feet.

“A further extension of the stamp duty incentive will bring relief to prospective buyers as home loans have become expensive compared to the past year and a half,”  said Shishir Baijal, chairman and managing director of Knight Frank India. 

“The stamp duty rebate has helped the developers sustain homebuying demand. This measure will continue to enthuse homebuyers as loan rates climb northward. The government’s continued support in this context will go a long way in sustaining and developing the housing market momentum,” said Knight Frank India senior director (east) Abhijit Das. The state government had extended the incentive to March 31, 2023, in the last month.

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