Tamilnadu : 50% increase in infrastructure Fees

Mr. T Chitty Babu, CREDAI
The Tamil Nadu budget dealt a heavy blow to the construction industry, which includes the housing sector, by slapping a 50% increase in infrastructure and amenities charges (Fees), commonly known as Impact Fee, levied on all new buildings constructed in the state.

As of now, a multi-storeyed residential building in any part of the Tamil Nadu state is charged an impact fee of Rs. 25 per square feet. 

Chennai , Chengelpet regions.


For multi-storeyed commercial, IT, industrial/institutional buildings, the impact fee is Rs. 50 per square feet in Chennai and Chengelpet regions.

In Coimbatore & Tirupur, it is Rs. 37.5 per square feet and in other regions in the state it is Rs. 25 per square feet.

A 50% hike in impact fee will translate into an increase of  Rs. 12,500 to Rs. 25,000 for a 1,000 square feet building depending on the category it belongs to.   

Shortage 30 lakh houses..!

Mr. T Chitty Babu, CREDAI**, secretary said ''Tamil Nadu faces a shortage of 30 lakh houses. The state government could have avoided increasing the infrastructure & amenities charges. It will lead to increase in prices of flats” 
.
** Confederation of Real Estate Developers’ Association of India
Src: TOI
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Election results The most obvious is not obvious

"The most obvious is not obvious" I frequently receive calls from clients asking if they should invest a sum of money before the e...