Knight Frank, India’s leading real estate consultancy, noted that the 3,044residential sales documents were registered in Greater Kolkata in June 2022, a 114% year-on-year (YoY)increase. This high annual growth is on the back of a low base of properties registered in June 2021, a period marred by the severe second wave of Covid-19 pandemic in June 2021.The first anniversary of the stamp duty cut tenure translates into a 20% YoY rise compared to the previous one-year period. However, on a month-on-month (MoM) comparison, June 2022 witnessed a 28% decline in properties registrations. Due to the applicability of the stamp duty rebate for nearly a year now, the monthly slowdown in properties being registered is noted as many buyers have already completed their property purchases. With the two repo rate hikes leading to rise in home loan rates, the homebuyer affordability has been affected leading to a slowdown in enquiries.
Since the stamp duty cut was announced, 44,189 residential properties have been registered in Greater Kolkata.The numbers capture all residential sales documents registered with flat/apartment sizes mentioned, the registration data comprised of transactions in both the primary and secondary markets.
Table 1: Monthly Residential Sales Deeds Registered: January 2021 –June 2022
| Total Number of Residential Sales Deeds Registered* | In Greater Kolkata | MoM trend | YoY trend |
| January 2021 | 3,553 | 38% | |
| February 2021 | 4,595 | 29% | 26% |
| March 2021 | 5,465 | 19% | 108% |
| April 2021 | 3,673 | -33% | – |
| May 2021 | 1,281 | -65% | 628% |
| June 2021 | 1,422 | 11% | -5% |
| July 2021 | 2,998 | 111% | 39% |
| August 2021 | 7,316 | 144% | 268% |
| September 2021 | 4,846 | -34% | 79% |
| October 2021 | 4,683 | -3% | 87% |
| November 2021 | 1,140 | -76% | -62% |
| December 2021 | 3,968 | 248% | -10% |
| January 2022 | 2,391 | -40% | -33% |
| February 2022 | 1,593 | -33% | -65% |
| March 2022 | 4,697 | 195% | -14% |
| April 2022 | 3,280 | -30% | -11% |
| May 2022 | 4,233 | 29% | 230% |
| June 2022 | 3,044 | -28% | 114% |
Source: Directorate of Registrations and Stamps Revenue, Government of West Bengal; Knight Frank India Research
*Includes all types of apartment sales documents registered with flat/apartment sizes captured at the time of registration of the property
Table 2: Residential Sales Deeds Registered: July 2020 – June 2021 vs. July 2021 – June2022
| Total Number of Residential Sales Deeds Registered* | In Greater Kolkata | YoY change |
| July 2020 to June 2021 | 36,792 | – |
| July 2021 to June 2022 | 44,189 | 20% |
Source: Directorate of Registrations and Stamps Revenue, Government of West Bengal; Knight Frank India Research
*Includes all types of apartment sales documents registered with flat/apartment sizes captured at the time of registration of the property
Table 3: Apartment Size Analysis Comparison
| Year | 0 – 46 sq m (0-500 sq ft) | 47 – 92 sq m (501-1000 sq ft) | More than 93 sq m (more than 1001 sq ft) |
| June 2022 | 823 | 1,420 | 801 |
| % Of total sales | 27% | 47% | 26% |
Source: Knight Frank India Research
Of the various configurations, homes in the range of 501-1,000 sq ft continued to account for the highest share of 47% of the total registrations inJune 2022. The bigger unit sizes of more than 1,001 sq ft comprised 26% share in the total pie. Smaller units of up to 500 sq ft comprised a 27% share of the total.
Figure1: Micro-market share by Percentage – June 2021 and June 2022
Source: Knight Frank India Research
North Zone and SouthZone continued to remain the best performing zones in terms of home sales in June2022.The share of North Zone expanded from 28% of the total in June2021 to 52% in June 2022 as affordable and mid-segment ticket sizes gained traction from home buyers. The EastZone witnessed a growth in its share from 12% in June 2021 to 15% in June 2022 due to sustained demand from home buyers. Rajarhat, on the other hand, witnessed a decline in its share from 4% in June 2021 to 1% in June2022.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “In the one-year since introduction of stamp duty rebate in West Bengal we have noted a 20% YoY growth in residential properties registered compared to the previous one-year period. There is however a month on month decline in property registrations in June 2022. A 90-basis point repo rate hike has impacted home loan rates which may have played a role in this slowdown. While we do not anticipate a pronounced dent in demand for new homes in the short term, as in affordability terms Kolkata remains well within the affordable range, rising loan rates and indeed the availability of the stamp duty rebate right up to September 2022 may delay decision making in the short term. Nonetheless, Kolkata is a price sensitive market and in H1 2022 it registered a 4% rise in average prices. A change in total outflow towards home ownership may disrupt the demand momentum.”