Kolkata witnessed a record growth in residential property registrations in June, as the West Bengal government withdrew rebates on stamp duty and circle rate, effective from July this year, after providing these benefits for the last three years.
A total of 4,292 residential properties were registered in Kolkata Metropolitan region in June 2024, making it the best performance for June in the past five years, real estate consultant Knight Frank said in its report on Wednesday.
The residential property registrations in June this year grew by 25 per cent year-on-year, compared to 3,437 units registered in June of the previous year. On a month-on-month basis, the growth was 27 per cent over May 2024. Notably, property registrations had month-on-month declines in March, April, and May, according to Knight Frank’s data.
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The data encompasses transactions in both primary (fresh sale) and secondary (resale) markets for residential properties across all periods.
The West Bengal government introduced a 2 per cent reduction in stamp duty and a 10 per cent slash in the circle rate in 2021 to combat the economic slowdown caused by the Covid-19 pandemic and boost the real estate market. The government extended the relief measures for homebuyers several times, with the extension valid until June 30 this year.
“Kolkata’s residential real estate market spiked in apartment registrations due to the stamp duty remission, recording its best June performance in five years. The surge, prompted by the impending end of the remission effective July 1, 2024, reversed a three-month decline and achieved a robust 25 per cent annual growth. The three-year stamp duty remission significantly boosted the sector,” said Abhijit Das, Senior Director – East, Knight Frank India.
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Since July 2021, when the stamp duty rebate was introduced, Kolkata has seen registrations of 140,358 home registrations.
“We believe that the market’s resilience and latent demand will help continue the growth of the residential market, albeit at a moderated pace without the stamp duty incentive,” Das added.
Sushil Mohta, President, Credai West Bengal and Chairman, Merlin Group, said the record growth in apartment registration in June was prompted by the impending end of the rebate, effective July 1. “Many fence sitters hurried to complete their registration at the eleventh hour and people who had not completed the registration process earlier opted to do so,” Mohta said.
He said the rebate in stamp duty and circle rate, along with the extension over the last three years by the State government, significantly boosted the real estate sector in Kolkata. It benefitted the pandemic-ridden real estate segment and made a substantial contribution to the state exchequer. In 2023, the sector contributed around ₹7,500 crore from property registrations to the exchequer.
“Now the Union Budget has urged the state governments to lower stamp duty for women buyers and we are expecting our state government to provide further support. We hope the sector will continue its growth trajectory with increased urbanisation and rising disposable income. However, we urge the government to further assist us by lowering the stamp duty, as it is higher in West Bengal compared to many other states,” Mohta added.