Stamp duty remission boosts real estate activity in Kolkata

Kolkata and its adjoining Kolkata Municipal Development Zone (KMDA) witnessed 4,683 apartment sales documents registered last month with the 2% stamp duty remission helping sales. This prompted the state to extend the repayment for another three months until January 2022, adding joy to Diwali week.

According to a report by Knight Frank, although in October of this year the number of registered residential deeds of sale remained a little lower than in September of this year, year-on-year growth of 87% has outpaced growth. recorded the previous month. In September, 4,846 apartment sale documents were registered in greater Kolkata, contrary to the past trend, when the period of Durga Puja festivities witnessed a lack of action in business activities.

Knight Frank said the stamp duty rebate has been granted and extended to combat the state’s economic downturn following the Covid-19-induced pandemic. This has provided some relief to home buyers and has also boosted real estate sales. However, the discount benefit will not remain for the contagious land merger but the 10% reduction in circle rates will continue until January of next year.

Shishir Baijal, Chairman and CEO of Knight Frank, India, said the recent buoyancy in the Kolkata residential market is a direct result of the West Bengal government’s cut in stamp duties in July of this year. These demand stimuli have a multiple impact, not only on the residential real estate sector, but also on the economy as a whole. “With buying momentum sustained, we expect supply to accelerate as well, leading to more jobs and greater prosperity,” Baijlal said.

In terms of unit sizes, apartments over 500 square feet saw a 260% year-on-year growth, although apartment sizes up to 500 square feet saw a 23% percentage decrease. . Unit sizes of 500 to 1,000 square feet and 1,000 square feet and over recorded annual growth of almost 260% for each. Larger units continue to be the flavor of the holiday season and pique the interest of home buyers and non-resident Indians.

Demand stimulus in the form of low interest rates on home loans and the festive mood have improved consumers’ appetites for home purchases. Despite the deadly second wave earlier this year and fears of the third wave of the pandemic, residential sales deeds recorded in the ten months of calendar year 2021 have doubled from 2020, according to the report.