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Buying an apartment in December in Chennai is more costly than buying in April - Zoom in apartment costs now!!
Posted on: 05/Jan/2024 9:10:16 AM
Instead of making the lives of many home buyers easy, the spike in the composite value has become only a burden for the homebuyers now!!
The TN state government was of the view that the spike in the composite value for registration of apartments would benefit the home buyers. It was brought to light by Credai or Confederation of Real Estate Developers Association in India that the move to increase the composite value of the apartments has created a huge burden on the home buyers. It added that this move might lead to a downfall in the real estate industry.
According to Mr. S. Sivagurunathan, president of Credai, the real estate industry has started to recover now after the slump. He spoke about how due to the increase in the composite valve homebuyers would be affected. He concluded that home buyers, real estate industry and govt would benefit if the values are reduced. There is now a lot of confusion in the composite valuation that is adopted by the TN govt.
It must be recalled that the TN govt has issued a GO to implement a single agreement system with composite valuation methodology for the apartments from 1st of December. Information is that the composite valuation rates or registration charges have been fixed at 6% for the apartments below Rs 50lakhs and 7% for the apartments between Rs 50lakhs to Rs 3 crores and 9% for apartments exceeding Rs 3 cr.
It was mentioned by Credai that buying an apartment in December was costlier than buying an apartment in April. After the new system came into effect on 1st of December, the number of registrations across TN was lesser in December. This was revealed by Mr. S. Sridharan, VP, Credai National-South Zone. He added that registration fee charges of 4% for affordable housing category and 5% for all the categories were requested from the TN govt.
Homebuyers would have to pay Rs 20lakhs to Rs 22 lakhs while buying an apartment worth Rs 1 crore. This was according to Mr. L. Shanthakumar, RERA CMDA committee member, Builders Association of India. He threw light on how the composite guideline value fixed by the govt was higher than the market rate.
The Credai calculations have revealed that an apartment worth Rs 44lakhs in Poonamallee would cost Rs 45.38lakhs (with registration charges of Rs 1.35lakhs) before the month of April. Point is that after December the same apartment would cost Rs 47.01 lakh with registration charges of Rs 2.91 lakh. It is now said that the confederation has urged the TN govt to work collaboratively with the stakeholders to develop an efficient system.
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