In a recent analysis, Knight Frank, the real estate consultancy firm, reported that 35,467 apartments have been registered in Kolkata Metropolitan Area (KMA) since the beginning of the calendar year 2023. A total of 4,441 apartments were registered in October 2023, up by a modest 2% since the preceding month. This surpassed September’s numbers, making October the month with the highest property registrations in 2023 thus far.
YoY Decline
On a year-on-year (YoY) basis, this marks a 35% decrease compared to October 2022. The YoY decline is attributed to the base effect from the previous year, which saw significant growth in registrations due to strong consumer sentiment encouraged by the continuation of the stamp duty rebate.
The extension of stamp duty rebate announced before Diwali coupled with the recent stance by Reserve Bank of India (RBI) to keep the repo rate unchanged for the fourth time in this fiscal year could help maintain a positive trend in Kolkata’s residential real estate market in the coming months.
The data encompasses transactions in both primary (fresh sale) and secondary (re-sale) markets for residential apartments throughout all periods.
Apartment size
In October 2023, apartments ranging from 501 to 1,000 sq ft accounted for 53% of the overall registrations, showing a notable increase from the 44% recorded during the same period in the previous year. The share of smaller unit sizes, up to 500 sq ft remained at par at 24% in both October 2022 and October 2023. The share of apartments in this size category has remained steady in the past one year. Units sized above 1,000 sq ft comprised 23% share in the total registrations. Compared to October 2022, this unit size category’s share has declined from 32% to 23% in the past one year.
Areas
During October 2023, the South Zone topped the micro-market registration list with a 39% share of Kolkata’s total apartment registrations. A year ago, October 2022 witnessed the South Zone at the second highest position with a 29% share of the total registrations. In the past one year, the share of this zone in the total property registrations has expanded to take the first spot.
In October 2023, the North Zone garnered the second position in terms of % of registrations with a 34% share. However, the share of North Zone has declined from 38% in October 2022 to 34% of total registrations in October 2023. The share of Rajarhat, Central and West Zones remained largely at par in both the periods with modest variations.
Abhijit Das, senior director- east, Knight Frank India, said, “Despite a 35% year-on-year decline attributed to the base effect from October 2022, the outlook remains optimistic in the city. The continued extension of the stamp duty rebate and the RBI’s decision to maintain the repo rate offer a promising trajectory, fostering positivity in Kolkata’s residential real estate market for the upcoming months.”
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