After a slump during last fiscal when real estate purchases fell 23.54%, property registration in Tamil Nadu appears to be clawing back with a 11% growth in registrations in April-May 2013.
The government of Tamil Nadu raised guideline values sharply — the base price at which a property is registered– effective April 1, 2012. This coupled with high lending rates impacted new home buys. With no signs of a rollback on guideline rates and mortgage rates showing signs of easing, property registrations appear to pick up. New property registrations were homogenous and spread across the state, data from the state’s registration department showed. Registrations in April-May stood at 4.47 lakh as against 4.03 lakh a year ago, a rise of 10.87%.
Among the regions which witnessed strong growth includes, Kancheepuram, Chengalapet, Kumbakonam, Nagapattinam, Pattukottai, Myladuthurai, Namakkal, Dharmapuri and Krishnagiri.
“There was a definitive slowdown. Besides, February and March are months where companies race to achieve their sales targets which could have compromised on prices. But we are witnessing a definitive improvement in both sentiment and sales.
Chennai lead with 18.9% growth in property deals. Southern sub-urban areas like Medavakkam, Pallikaranai, Neelankarai, Guduvancherry, Tambaram and Tiruporur witnessed strong growth. The other hot-spots were Siruthavur, Panaiyur and Kelambakkam off Vandalur and East Coast Road, data showed. Thanjavur and Salem recorded 17.24% and 14% growth respectively in property deals. The registration of documents hovered around 27 lakh to 35 lakh till 2008, and fell to 26 lakh last year.
“The past two months have been fairly good in terms of new sales. We tend to believe that the downward bias has been halted.”
Sales in drought hit delta districts were brisk. The agricultural lands in delta districts were lapped up as hot cakes. Thanjavur region, comprising of Nagapattinam, Pattukkottai, Myladuthurai, Kumbakonam has recorded good growth. “At least 50% of the sale is registered against agricultural lands and the rest in urban areas,” said a district officer in Thanjavur. The proximity to NH7 and NH45, the busiest national highways, are attracting buyers to the industrial corridor of Salem, particularly Hosur.
“With too many choices around, buyers are doing window shopping. The sale will pick up”. With the National Housing Bank (NHB) Residex, that tracks on the housing prices in cities suggesting fall in real estate prices of several areas in Chennai region, the demand will soon pick up. “There is a high rise in first time buyers.
In the Western parts of the state, property buying was strong in Namakkal and Thiruchengode towns, famous for ‘super schools.’
Source: The Times of India, Chennai