2023-05-10-莱坊-Kolkata_Residential_Property_Registrations_Update_February_2022_2页_520kb

Kolkata Residential Property Registrations Update February 2022 Summary

Core Content

The document presents an update on residential property registrations in Kolkata for February 2022, analyzing the impact of stamp duty reduction and other demand stimulant measures introduced by the West Bengal government. It also provides insights into the market trends across different micro-markets and apartment sizes.

Key Findings

• Stamp Duty Cut Impact: The reduction in stamp duty, announced on 7th July 2021, initially spurred a significant increase in property registrations. However, the momentum has slowed in February 2022, with a 33% MoM decline compared to January 2022.
• Total Registrations: In February 2022, 1,593 apartment sale documents were registered in Greater Kolkata.
• Cumulative Registrations: Since the stamp duty cut announcement, nearly 29,000 homes have been registered in Greater Kolkata.
• Annual Decline: There was a 65% annual decline in apartment sale documents registered in February 2022.
• Apartment Size Analysis:
  • Homes in the 47–92 sq m (501–1,000 sq ft) range accounted for 43% of total registrations in February 2022.
  • Homes above 93 sq m (1,001 sq ft) made up 33% of the total.
  • The 0–46 sq m (0–500 sq ft) category saw a 67% YoY decline.
  • The 47–92 sq m category also experienced a 67% YoY decline.
  • The 93 sq m and above category had a 61% YoY decline.
• Micro-market Trends:
  • The South Zone saw an increase in its share from 30% in February 2021 to 37% in February 2022.
  • The North Zone maintained a 30% share.
  • Rajarhat increased its share from 4% to 8%.
  • The West Zone experienced a sharp decline in share, from 19% to 6%, due to a lack of residential inventory.
  • The Central Zone saw a rise in its share from 5% to 7%.

Main Viewpoints

• The stamp duty cut and demand stimulant measures have had a positive effect on the residential market in Kolkata, especially in the early months following the announcement.
• However, the effectiveness of these measures has waned, leading to a decline in registrations in February 2022.
• The expiry of the stamp duty relief on 31st March 2022 may lead to a rebound in demand in March 2022.
• The development of the primary market could be stimulated if the relief measures are extended into the next financial year.
• Rising input costs may force developers to increase prices, potentially affecting buyer interest.
• Apartment size preferences have shifted, with mid-sized units (47–92 sq m) being the most popular, while smaller and larger units saw significant declines.

Key Information

• Total registrations in February 2022: 1,593
• MoM decline: 33%
• Annual decline: 65%
• Apartment size distribution:
  • 0–46 sq m: 24% of total
  • 47–92 sq m: 43% of total
  • 93 sq m and above: 33% of total
• Micro-market shares:
  • Central: 5% (2021) → 7% (2022)
  • East: 12% (2021) → 12% (2022)
  • North: 30% (2021) → 30% (2022)
  • Rajarhat: 4% (2021) → 8% (2022)
  • West: 19% (2021) → 6% (2022)
  • South: 30% (2021) → 37% (2022)

Conclusion

The residential property market in Kolkata is showing signs of normalization following the initial surge from the stamp duty cut. While the demand stimulant measures have helped, the market is now adjusting, and registrations have declined. The expiry of the relief in March 2022 may lead to increased activity in the following month, and continued support could help revive the primary market. The South Zone and Rajarhat are emerging as preferred micro-markets, while the West Zone is underperforming due to inventory shortages. The mid-sized apartment segment remains the most popular in terms of sales.