Home sales may take a hit if the Bengal government does not extend the 2 per cent stamp duty remission in Calcutta beyond December 31.

The tax break has boosted residential property sales in the city following three extensions in 2022 - from March 31 to September 30 and after that to December 31.

According to real estate consultancy firm Knight Frank, since the initial stamp duty cut announcement in July 2021, a total of 72,790 residential properties have been registered in the city in 17 months.

By contrast, registration in the 17 months prior to the rebate was 44,736 units (see chart). The total number of residential properties registered in the Calcutta Metropolitan Area (KMA) in November 20222 was 3,047, a 167 per cent year-on-year growth on a low base because of a lack of awareness on the extension of the rebate beyond October 2021. Sales in November were, however, down 55 per cent from October 2022.

Homes in the size of 47-92 sq m (501-1000 sq ft) accounted for a maximum share of 51 per cent of the total registrations in November 2022.

This segment saw a growth of 221 per cent during the month on a year-on-year basis. The bigger unit sizes of more than 93 sq m (more than 1001 sq ft) comprised 25 per cent of the total pie.

As many buyers have completed their primary home purchases since the announcement of the rebate in 2021, sales volume may moderate going forward as affordability is affected in the wake of rising home loan costs, Knight Frank said on Friday.

“Though the privilege is set to expire by the end of this year, we are hopeful that the state government may consider another extension as now homebuyer’s affordability has been dented due to multiple repo rate revisions in 2022,” said Shishir Baijal, chairman and managing director, Knight Frank India.

“Since this typically impacts purchases in the price-sensitive affordable and mid-segments, a continuation of this rebate will help home buying momentum in 2023.”

Credai Bengal

Siddharth Pansari has been elected as the new president of Credai Bengal at the industry body’s 33rd annual general meeting.

Other office bearers for the new term include Ashok Saraf and Apurva Salarpuria as vice- presidents of Credai Bengal.