However, the benefit of the rebate will not remain for the amalgamation of contagious land but the 10% reduction in circle rates will continue till January next year.
Kolkata and its adjoining Kolkata Municipal Development Area (KMDA) has witnessed 4,683 apartment sales documents registered last month with the 2% stamp duty rebate aiding the sales. This has prompted the state to extend the rebate for additional three months up to January 2022, adding cheer to the Diwali week.
According to a Knight Frank report, though in October this year the number of residential sales deeds registered remained a little shy of September this year, the year-on-year (y-o-y) growth of 87% surpassed the growth recorded in the previous month. In September, 4,846 apartment sales documents were registered in greater Kolkata, unlike the past trend, when the Durga Puja festivity period used to witness a lack of action in commercial activities.
Knight Frank said the rebate on stamp duty has been given and extended to combat the economic slowdown situation in the state in the wake of the Covid-19 induced pandemic. This has provided some relief to the home buyers as has also given a boost to real estate sales. However, the benefit of the rebate will not remain for the amalgamation of contagious land but the 10% reduction in circle rates will continue till January next year.
Shishir Baijal, chairman and managing director, Knight Frank, India, said, the recent buoyancy in Kolkata’s residential market is a direct result of the stamp duty cut by the West Bengal government in July this year. Such demand stimulants have a 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,” Baijlal said.
In terms of unit sizes, apartments above 500 sq ft witnessed a 260% y-o-y growth, though the apartment sizes of up to 500 sq ft registered percentage degrowth of 23%. Unit sizes of 500-1,000 sq ft and 1,000 sq ft and above clocked nearly 260% y-o-y growth for each. The bigger sized units continue to be the flavour of the festive season and pique the interest of domestic homebuyers and non-resident Indians.
Demand stimulation measures in the form of low home loan interest rates and the festive vibe have improved the home buying appetite of consumers. Despite the fatal second wave earlier this year and the fear of the third wave of the pandemic, residential sales deeds registered in the ten months of the calendar year 2021 doubled over 2020, the report said.