In a remarkable surge, property registrations in Kolkata witnessed a staggering 64% year-on-year increase in February 2024. This spike, predominantly fueled by the resurgence of sales in the affordable housing sector, marks a significant turnaround for the real estate market in the city.
According to data compiled from the state directorate of registrations & stamps revenue by real estate consultancy firm Knight Frank India, the Kolkata Metropolitan Area witnessed a threefold increase in property registrations compared to the previous month. This surge also represented a remarkable 60% rise over the same period last year, indicating a robust revival in home sales.
The revival in the affordable housing segment has been identified as a key driver behind this exponential growth. Previously, there was a notable time gap between property sales and registrations; however, they are now occurring almost simultaneously to capitalize on the 2% stamp duty cut benefit, introduced by the state since July 2021.
In February, a total of 4,806 apartment registrations were recorded, marking a significant uptick compared to January 2024, when only 1,184 flats were registered. Similarly, this figure represents a remarkable 64% increase over the registrations recorded in February 2023, which stood at 2,922. Notably, the share of unit sizes up to 500 sq ft has seen a substantial increase, climbing from 27% in February 2023 to 43% by the end of February 2024, indicating a resurgence in budget-friendly apartments.
Abhijit Das, Senior Director (East) at Knight Frank India, expressed optimism about Kolkata's real estate sector, stating, "As Kolkata marks its best February property registrations since 2020, the growth underscores the city’s resilience and vitality in the real estate sector."
Siddharth Pansari, President of the Confederation of Real Estate Developers Association of India (Credai) Bengal chapter, echoed this sentiment, emphasizing the positive impact of the revival of the affordable housing segment on the market. Pansari also predicted sustained demand for homes in the coming months, despite potential temporary disruptions due to elections.
The statistics for February 2024 also revealed significant shifts in micro-market registration tallies, with the north zone emerging as the frontrunner with a 43% share of Kolkata's total apartment registrations, compared to 21% a year ago. Conversely, the share of the south zone decreased from 41% in February 2023 to 33% in February 2024, indicating changing preferences among homebuyers.
With Kolkata's real estate sector demonstrating robust growth and resilience, coupled with increasing demand for affordable housing, the city reaffirms its position as a thriving real estate market poised for further expansion.
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