Residential property registrations soar after 2% cut in stamp duty
Government’s move to provide a demand stimulant at the opportune time is just right: Knight Frank report
image for illustrative purpose
THE West Bengal government's two per cent rebate on stamp duty for registration of all documents (except the documents of amalgamation of contiguous land) in its State budget in July 2021 has boosted Kolkata Metropolitan Area (KMA) or Greater Kolkata's real estate market according to Knight Frank India, real estate consultancy.
The stamp duty cut benefit is available for those who complete registration between July 9, 2021 and October 30, 2021. Coupled with a 10 per cent reduction in circle rates, the fence sitters are now getting back to the market to seal the deals.
Homebuyers are completing the registration of the properties purchased previously as well as creating new demand for the residential sector. As many as 6,861 units that were sold in Kolkata's primary residential market in Q3 2021 (July-September) period, a total of 15,160 residential sales deeds were registered in KMA, marking a 122 per cent year-on-year (YoY) growth over Q3 2020. In 2021, the months of July, August and September noted a YoY increase of 39 per cent, 268 per cent and 80 per cent over the respective months of 2020, Knight Frank survey report says.
"Government's move to provide a demand stimulant at the opportune time is just right. Much like most other cities, the sales momentum had seen a significant drop in the early part of the pandemic, therefore,this stimulant was critical to give the market the growth. We expect this move will further propel fence sitters to make their purchase decisions," said Swapan Dutta, Senior Branch Director, Kolkata, Knight Frank India.
Shradh period of 11 days beginning from September 20th, 2021. Due to the heightened momentum in registration of residential sales deeds in August 2021, which constituted 48 per cent of the quarterly total, the highest percentage jump has been observed in the unit sizes of 93 sq m (1,000 sq ft) and above.
"The growth in the mid and high segment has also reaffirmed the fact that a
minor push has helped the market rejuvenate itself. The significant growth in homes larger than 1000 sft as well as in the high value locations of south Kolkata is largely since the mid to high income category buyers were looking at a push. With many other factors like growth in household income, stability in growth of the economy as well as historic low home loan interests has augured well for the sector," Swapan added.
