Combined value of residential real estate sold in Calcutta during FY23 crossed the Rs 10,000 crore mark, riding on the back of the brisk sale of apartments, higher unit prices, and perceptible demand uptick in the luxury segment.

The milestone marked a 38 per cent rise in value over the previous year while the volume grew by 31 per cent, indicating a higher tick size of residential units sold during the fiscal. The sale value stood at Rs. 10,660 crore in FY23, compared to Rs. 7,720 crore in FY22.

During the same period, the number of apartments sold rose from 16,392 units in FY22 to 21,415 units in FY23, a study by real estate consultancy Anarock found. The consultancy noted that the continuation of the stamp duty relief and rebate offered in the circle rate is helping keep up the sales momentum and retain it too.

“Apart from the pandemic-driven need for homeownership, the other major growth enabler that supported in reviving the residential sales momentum of Calcutta is the extension of stamp duty cut rebate (a 2 per cent reduction in stamp duty and a 10 per cent in circle rate) four times till December 2022,” Anuj Puri, chairman, Anarock Group, said.

The rebates are now in place till September 30, 2023, having been extended by the state government 6 times since it was first announced in the state budget presented in July 2021.

Multiple factors drove the sale value to reach a record high. Apart from volume uptick, the bigger size of apartments translates to higher unit value contributed. Property consultancy Knight Frank noted that there has been a consistent uptrend in buyers’ preference for a bigger home post-pandemic which forced many to adopt a hybrid work model involving significant time spent working from home.

There has been a double-digit rise in demand for apartment sizes between 500-1000 square feet and above 1,000 per feet, compared to a single-digit increase in affordable homes (below 500 square feet), Knight Frank observed in a recent note.

Moreover, after years of stagnation prices went up in the Calcutta market.

“Between 2013 to 2021, prices hit a plateau and the market absorbed the cost-push. Post covid, prices went up on average by 10-15 per cent in 2022 before stabilising again,” Sidharth Pansari, president of Credai Bengal, said.

Prioritising capital allocation to home buying over other asset classes or experiences was also benefiting residential real estate in multiple ways, Pansari observed, adding heft to luxury and premium property sales.