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Prospects of houses/plots prices going up
Posted on: 14/Jun/2017 3:59:01 PM
As the registration fees for lands/plots has been recently revised upwards, there are prospects of the prices of houses/plots also going up.
With this view, CREDAI Chennai President Mr. Suresh Krishnan, informed and requested that the increase of registration charges to 4% must be withdrawn and should be made 1%.
While having a session with the press reporters, Mr. Suresh Krishnan informed that CREDAI welcomed the decision to reduce the plot guideline value by 33%. However, the other step of increasing the registration fees from 1% to 4% will not yield any desired results.
The values of the land and building will be assessed together. So, if the plot guideline value is lesser, as the registration fee is higher, the prices of houses/flats will go up, maybe up by Rs. 30 per sq.ft.
It is remarkable that only in the state of Tamil Nadu, the registration fee is as high as 4%. Other states charge between 1% and 3.5%.
As there is the definite possibility of the prices of houses/flats going up due to this, the state government of Tamil Nadu must reconsider this decision. As this rise would adversely affect the real estate customers, it is advisable to revert the registration fee back to 1%.
Presently, the real estate business is severely affected due to the sand shortage. 1 cft of sand, which was sold at Rs. 35 to Rs. 40, is now sold at Rs. 100 to Rs. 120. Even if ready to pay this high price, sand is not readily available. Because of the construction activities covering 1 Crore sq.ft. have been severely affected.
M-sand, which is the alternative to sand, is also in short supply. So, the state government must take up this issue on a war-footing and come up with an immediate solution.
