City's residential market sees 62% growth in 2021: Report

KOLKATA: Kolkata residential market witnessed remarkable growth by 62 per cent year-over-year (YOY) in 2021 with 14,405 housing units sold during the year. New launches also witnessed a mighty rise of 81 per cent YoY with the addition of 7,510 units in 2021.

The total office transactions for 2021 stood at 0.8 mn sq ft. New completions in 2021 for office space was recorded at 0.6 mn sq ft, according to the latest report by Knight Frank India.

Knight Frank India on Wednesday launched the 16th edition of its flagship half-yearly report – India Real Estate: H2 (second half of a calendar year) 2021.

The report highlights that Kolkata witnessed a spectacular growth in sales during 2021 calendar year, largely due to a strong performance in the second half. As a result, 2021 recorded the highest sales in the primary residential market in the past five years. Of the total, maximum sales took place in H2 2021 comprising 9,290 housing units. About 64 per cent of the total primary market sales of 2021 in Kolkata were achieved in H2 2021 alone, as 2 per cent government rebate on stamp duty for property registrations played a crucial role in the rejuvenation of the residential market.South and North remained the most favoured micro-markets accounting for 36 and 27 per cent of H2 2021 sales respectively. The share of ticket sizes < INR 5 million continued to lead sales volume with 64 per cent of the total market share during H2 2021. Locations in the city's southern micro-market, such as Joka and Diamond Harbour Road, continued to attract homebuyers. North Kolkata peripherals such as Madhyamgram and locations near Dum Dum are also faring well.

In H2 2021, the share of projects with ticket sizes of INR 5-10 million increased from 19 per cent in H2 2020 to 25 per cent of H2 2021's total sales.Co-working spaces emerged stronger from the pandemic influence with a 17 per cent share in transactions in H2 2021. The Banking, Financial Services and Insurance (BFSI) sector also witnessed a growth in market share from 1 per cent in H2 2020 to 9 per cent in H2 2021. The Peripheral Business District-I (Salt Lake City) dominated the market share with 70 per cent followed by Peripheral Business District-II (Rajarhat New Town) with 16 per cent of the total transactions in H2 2021.