Kolkata witnessed a significant downturn in home registrations, marking a 13% decline compared to the same month last year and an 18% drop from June 2024. This decrease comes after a sustained period of growth over the previous five months. The slump in home sales is largely attributed to the recent cessation of state incentives, which had been a major driving force in the residential property market.
The drop in registrations follows the state’s withdrawal of key incentives that had been in place since July 2021. These incentives included a 2% reduction in stamp duty and a 10% cut in circle rates, which had previously spurred the registration of over 1.4 lakh residential properties in Kolkata. In July 2024, the state directorate of registrations recorded 3,506 residential property registrations, down from 4,292 in June 2024 and 4,036 in July 2023. In July 2022, registrations had peaked at 6,709 units. The data also reveals a shift in the type of properties being registered. Mid-sized units ranging from 501 to 1,000 square feet accounted for 47% of the registrations in July, a decrease from 51% in the previous year. Conversely, the share of smaller units, up to 500 square feet, increased to 45% from 27% a year ago. Large apartments exceeding 1,000 square feet saw their share drop from 22% in July 2023 to just 8% in July 2024.
The Bengal chapter of Credai has urged the state government to reconsider the withdrawal of these incentives. President of Credai Bengal, pointed out that the state’s stamp duty rates are comparatively high and recommended a rationalisation to stimulate sales and improve revenue for the state exchequer. Senior Director East at Knight Frank India, noted that the residential market in Kolkata, having benefited from the incentives, has naturally reacted to their removal. He anticipates that the market will stabilise as buyers adjust to the new conditions and expects a potential rebound in registrations with the onset of the festive season. Das emphasised that overall economic stability will also play a crucial role in sustaining market momentum.
Regional performance in July showed that the north zone led in apartment registrations with a 34% share, followed closely by the south zone with 33%. The east zone maintained a steady 11% share, while Rajarhat held 10%-11%. The west zone’s share decreased from 8% to 6%, reflecting a broader trend across central Kolkata as well.
