Greater Kolkata property registrations in May bounce back with 230% YoY growth:Knight Frank India
Knight Frank India, country’s leading real estate consultancy, noted a recovery inthe registration of residential apartments in Greater Kolkata in May 2022.In May 2022, 4,233 apartment sale documents were registered in the city.Since January 2022, 16,194 residential propertieshave been registered, which is nearly 39% of the total properties registered since the stamp duty cut announcement in July 2021. After a slow start in the early part of 2022, residential property registrations have rebound recording a 29% MoM growth. On an annual basis, there is a 230% growth compared to May 2021. Also, for the first time since the introduction of the stamp duty cut,homes registered in Greater Kolkatahave crossed the 40,000 units mark.The registration data comprised of transactions in both the primary and secondary markets and include all sizes of residential properties.
Table 1: Monthly Residential Sales Deeds Registered: January 2021 –May 2022
| Total Number of Residential Sales Deeds Registered* | In Greater Kolkata | MoM trend |
| January 2021 | 3,553 | |
| February 2021 | 4,595 | 29% |
| March 2021 | 5,465 | 19% |
| April 2021 | 3,673 | -33% |
| May 2021 | 1,281 | -65% |
| June 2021 | 1,422 | 11% |
| July 2021 | 2,998 | 111% |
| August 2021 | 7,316 | 144% |
| September 2021 | 4,846 | -34% |
| October 2021 | 4,683 | -3% |
| November 2021 | 1,140 | -76% |
| December 2021 | 3,968 | 248% |
| January 2022 | 2,391 | -40% |
| February 2022 | 1,593 | -33% |
| March 2022 | 4,697 | 195% |
| April 2022 | 3,280 | -30% |
| May 2022 | 4,233 | 29% |
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 – May 2021 vs. July 2021 – May2022
| Total Number of Residential Sales Deeds Registered* | In Greater Kolkata | YoY change |
| July 2020 to May 2021 | 35,370 | – |
| July 2021 to May 2022 | 41,145 | 16% |
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) |
| May2022 | 927 | 1,978 | 1,328 |
| % Of total sales | 22% | 47% | 31% |
Source: Knight Frank India Research
Of the various configurations, homes in the size range of 501-1,000 square feet (sqft) continued to account for the highest share of 47% of the total registrations inMay 2022. The bigger homes measuring 1,001 sqftand above comprised 31% share in the total pie. Smaller units of up to 500 sq ft comprised a 22% share of the total. In line with the previous year, the trend for bigger apartment size preference amongst homebuyers remains a dominant theme in the residential market. With the homebuying demand skewed in favour of bigger units, the new residential supply also mirrors this preference.
Figure1: Micro-market share by Percentage – May 2021 and May 2022
Source: Knight Frank India Research
North, Rajarhat and Southwere the top three best performing zones in terms of home sales in May 2022.North Zone share expanded from 29% of the total in May 2021 to 42% in May 2022 as peripheral locations in this zone gained a lot of traction from homebuyers. Rajarhat, on the other hand, witnessed an expansion in its share from 5% in May 2021 to 19% in May 2022. This is indicative of a healthy sales velocity in this strategically located zone in Kolkata. TheSouth Zone witnessed a degrowth in its share from 32% in May 2021 to 17% in May 2022, though it remained the third most preferred zone in the city. Whilst South’s percentage share remained lower than May 2021, the number of units sold in this Zone has outpaced the May 2021 in absolute numbers.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The stamp duty rebate in force since July 2021 has had a definite impact on housing sales in West Bengal. In the past 11 months, more than 40,000 homes have been registered in Greater Kolkata. This enhanced sales velocity has supported the city’s residential market during the crucial pandemic years.”
Shishir further added,“After the repo rate hike by 40 basis points in May 2022, the Reserve Bank of India (RBI) has increased the repo rate by 50 basis points again in June 2022. Due to these two sequential increases, the repo rate now stands at 4.90% which will put an upward pressure on home loan interest rates. With increasing property prices, this will impact housing affordability in the near term.We are in a new residential business cycle with both rise in volume and price. While there are concerns regarding the inflationary pressures on home loan interest rate and property price, the continuation of this stamp duty rebateis an opportunity for homebuyers for the next few months in Kolkata.”