Q3 2024: City sees 14% YoY growth in residential sales

Kolkata: Kolkata witnessed 14 per cent year-on-year growth in residential sales in the third quarter of 2024 while office space vacancy tapered by 90 basis points.

The report ‘India Real Estate: Residential and Office Q3 2024 (July-September 2024)’ by the real estate consultant firm Knight Frank India cited that despite the state government’s withdrawal two per cent stamp duty cut and 10 per cent reduction in circle rate, Kolkata witnessed the highest percentage growth in annual terms recording a 14 per cent YoY growth in residential sales from 3,772 in Q3 2023 to 4,309 units in Q3 2024.

During the review period, 3,782 units were launched in the city. The average weighted residential price witnessed an increase of 2 per cent YoY during Q3 2024 with a value of INR 3,652 per sq ft.

During Q3 2024, 42 per cent of the residential sales were in the ticket size between Rs 5 million to 10 million registering a YoY growth of 18 per cent. Ticket size of below 5 million constituted 40 per cent of the overall residential sales in the market in the region and recorded a YoY increment of 7 per cent. The ticket size of 10 mn and above registered a growth of 23 per cent and accounted for 18 per cent of total market share in the city.

Meanwhile, the office market observed space transactions of 0.18 mnsq ft during Q3 2024. Kolkata recorded the highest office leasing activities from India facing businesses in the city at 0.1mn sqft during Q3 2024. The city constituted 68 per cent of the India facing business-oriented transactions followed by Flex and GCC at 24 per cent and 8 per cent respectively.

Abhijit Das, senior director,East, Knight Frank India said: “The market’s tenacity and underlying demand has driven the growth in the residential sector in the past 2 months of the quarter reflecting homebuyers renewed confidence in the market, following a 13 per cent dip in property sales in July 2024 due to the end of the stamp duty rebate.

The commercial real estate market in Kolkata shows great promise and is rapidly evolving, driven by the West Bengal government’s efforts to attract international businesses to the city…”