Residential sales in Kolkata up by 74 pc YoY in H1 2021

Kolkata, Jul 15 (FN Agency) Kolkata witnessed significant growth in new home sales of 74 per cent year-on-year (YoY) to 5,115 units in H1 2021 as compared to 2,937 units in H1 2020. Concerning new launches, the city witnessed a rise of 156 pc YoY to 2,195 units as compared to 858 units in H1 2020. The growth is largely on account of the lower base of H1 2020, a period which witnessed a washout quarter of Q2 2020 during the first wave of the COVID-19 pandemic, according to a report published by Knight Frank India, a premium international property consultant, in their flagship market assessment report “India Real Estate January – June 2021”- that evaluates the performance of residential asset classes in top eight markets of India. For the seventh consecutive quarter, residential sales have outpaced new launches in Kolkata.

This contributed to a sequential decline in unsold inventory which stood at 25,240 units, an 18 pc YoY decline over H1 2020. The residential sales in Kolkata started to show resurgence, especially during Q3 2020 and Q4 2020; and Q1 2021 saw many developers reporting the prevalence of a positive homebuyer sentiment. However, with the second wave of the pandemic unfolding in Q2 2021, residential real estate demand was again impacted in the quarter. Sales of homes costing less than INR 50 lakhs continued to dominate the overall residential sales volume in Kolkata with a 63 pc share. Homes costing over INR 1 crore constituted about 13 pc of all sales during this period, a rise when compared to a 7 pc share in H1 2020. The high-end segment too witnessed a revival in demand, indicating homebuyer preference for spacious homes. In H1 2021, new residential launches stood at 2,195 units. Compared to H1 2020, this is a healthy increase of 2.5 times, mainly due to the lower base effect. Before the city went into a conditional lockdown in Q2 2021, many developers had launched new projects.

The new residential supply was largely introduced in the affordable and mid-segment category in locations such as Howrah, EM Bypass, Narendrapur, Rajarhat and other fringe areas in northern Kolkata. “Despite the two waves of the COVID pandemic that has disrupted the economy, Kolkata residential market remained resilient. The increase in sales momentum paired with the stable prices indicates a buyer-friendly environment. The recent budget announcement by the State Government with regards to reduction in stamp duty by 2 pc and circle rates by 10pc is sure to drive demand. This announcement will provide a much-needed morale boost to the real estate sector in the region. Developers are likely to introduce new-supply in the short term to service the potential demand.” Knight Frank India, Kolkata branch manager Swapan Dutta said.