Stamp duty rebate gives big boost to Greater Kolkata’s real estate market

Stamp duty rebate gives big boost to Greater Kolkata’s real estate market

Kolkata Metropolitan Area (KMA) or Greater Kolkata’s real estate market has entered a major help ever since the West Bengal state government announced a 2 rebate on stamp duty for enrollment of all documents in its state finances in July 2021, stated Knight Frank, in its newest report.

The stamp duty cut for documents which complete registration between 9th July 2021 to 30th October 2021. Coupled with a 10% discount in circle charges, the fence sitters are actually getting again to the market to seal the offers.

Buoyed by the stamp duty cut announcement, 6,861 units were sold in Kolkata’s primary residential market in Q3 2021, the report mentioned. 

"Government’s step to provide a demand stimulant at the opportune time. 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.

During the Q3 2021 (July-September) period, a total of domestic deals deeds were registered in KMA, marking a 122 time-on- time (YoY) growth over Q3 2020. In 2021, the months of July, August and September noted a YoY increase of 39, 268 and 80 over the separate months of 2020.

Since the stamp duty cut was only applicable for 22 days in July, the real upward momentum came in August 2021 before decelerating down in September 2021 due to the onset of the portentous Shradh period of 11 days beginning from September 20th, 2021. Due to a period of heightened instigation in enrollment of domestic deals deeds in August 2021, it constituted 48 of the quarterly total.

The highest proportion soar has been noticed within the unit sizes of 1,000 sq ft and above. During Q3 2021, residences above 1,000 sq ft witnessed a large 403% soar in registrations over Q3 2020.

“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 sf 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,” he stated.

For the primary 9 months of the timetable 12 months of 2021, domestic gross deals deeds had been registered, marking a 102 periodic enhance over the identical interval in 2020. Because of the lockdown throughout the first surge of COVID-19, a important YoY change was witnessed in May 2021 which is basically attributed to a drop base than any robust exercise in gross deals enrollment.

Still, to keep the deals instigation the state government have to consider extension of this rebate till at least December 31st, 2021. Especially, after the Durga Puja fests conclude inmid-October 2021. The instigation in new home deals and fresh force needs to be sustained as it's vital for the sector to attract fresh investments.

By LNN (Liyaans News Network)