3rd Successive Year, Dip in Registration of Property & Plot in Chennai

Between March and September this year (2014), about 2.86 lakh documents were registered in Chennai

For the 3rd successive year, there has been a dip in registration of property & land in Chennai.

This time, the 11 story building collapse at Moulivakkam near Porur might have had something to do with it, according to members of the Confederation of Real Estate Developers’ Association of India (CREDAI).

The reluctance among the local bodies in Kancheepuram (Moulivakkam comes under it) & Tiruvallur districts that come within the Chennai Metropolitan Area to issue no-objection certificates & plan sanction approvals and the Revenue Department going slow on issuing pattas (land ownership documents) have definitely contributed to this, they say.

Between 2014 March & September this year, nearly 2.86 lakh documents were registered in Chennai, and this yielded Rs. 2,030 crore to the Registration Department.

For the same period during the previous financial year (2013-2014), about 2.88 lakh documents were registered with a revenue of Rs. 2,070 crore.

“The Rs. 40-crore dip in revenue for a period of 6 months is not that alarming. It is in line with the trend over the past few years,” said officials at the Department.

The number of documents registered all over the State too has been slipping.

From 35.1 lakhs during 2011-2012 to 26.9 lakhs during 2012 - 2013 to 26.5 lakhs during 2013-2014.

But, the revenue has jumped from Rs. 6,619 crore to Rs. 8,055 crore for the same period.

CREDAI representatives say the increase in revenue is due to the steady increase in plots of land costs.

However, the reduction in the number of actual registrations is a cause for concern, says one of CREDAI office-bearers. He puts it down to the increase in the guideline value and wants the Tamilnadu government to address this issue. However, he reckons, the building collapse in 2014 June had an impact for a couple of months, but it is no longer affecting the industry or / influencing the decision of property buyers.

In this sitution from 2014 November, in Tamilnadu Guideline value increased by 20%. But, there is no official announcemnet.

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