Residential sales in Kolkata up by 39% in H1 2022, says report

Kolkata: Kolkata's residential market increased by 39 per cent YoY (year-on-year) to 7,090 housing units in H1 2022 (first half of a calendar year, January to June).

The state government's third extension of the 2 per cent government rebate on stamp duty for property registration in March 2022 has further supported sales in the market.

South Kolkata continued to dominate the city's residential space, accounting for a market share of 31 per cent during H1 2022.

According to Knight Frank India's latest report, India Real Estate: H1 2022, though South Kolkata commanded the highest share of 31 per cent in the city's sales volume in H1 2022, its share has reduced from 40 per cent in H1 2021. In contrast, North Kolkata's share increased from 27 per cent in H1 2021 to 32 per cent in H1 2022, making it the best performing micro-market in the city.

The office market performance in H1 2022 remained steady for Kolkata's market with transaction volumes increasing by 128 per cent YoY to 0.6 mnsq ft in this period. New office completions were recorded at 0.2 mnsq ft during the same period. Salt Lake leads the market with 86 per cent share in office space consumption.

Information Technology (IT) and the Banking, Financial Services and Insurance (BFSI) sectors witnessed an expansion in their share during H1 2022.

The IT sector's share in Kolkata's transaction volume increased from 35 percent in H1 2021 to 39 per cent in H1 2022. BFSI sector's share increased from 7 per cent to 20 per cent in the same period too.

A high demand from homebuyers coupled with increasing raw material costs have led to a 4 per cent YoY increase in average residential prices in H1 2022.

Several reputed developers are now able to command a premium for their under-construction residential developments.