Tamil Nadu’s realty registers 11% growth
Chennai: During the last fiscal, real estate purchases in the city had fallen by 23.54%. However, property registration within the state appears to be mangling its way back after the slump. The period from April to May of 2013, recorded an impressive 11% growth in registrations.
Real estate guideline values were sharply raised by the government of Tamil Nadu. The guideline was made effective on the 1st of April, 2012. The guideline values were in regards to the base price at which a property is registered.
New home buys were impacted by the amalgamation of the guideline values and high lending rates. With the guideline rates going strong and the relenting mortgage rates have in turn encouraged property registrations.
Data from the state’s registration department dictates that new property registrations were homogenous and spread across the state. In April-May, registrations stood at 4.47 lakh as against 4.03 lakh in the fiscal year of 2011; indicating a rise of 10.87%.
Chengalapet, Dharmapuri, Kancheepuram, Krishnagiri, Kumbakonam, Myladuthurai, Namakkal, Nagapattinam and Pattukottai were among the regions which witnessed strong growth.
Real estate companies generally race to achieve their sales targets in the months of February and March. This adversely affects and compromises the realty prices. The same could also be the factor driving the definitive slowdown observed in the previous months. The real estate market however is improving with both sentiment and sales.
Growth in property deals was lead by Chennai with a growth of 18.9%. Southern sub-urban areas such as Guduvancherry, Medavakkam, Neelankarai, Pallikaranai, Tambaram and Tiruporur witnessed strong growth.
Data showed Kelambakkam off Vandalur and East Coast Road, Panaiyur and Siruthavur were the other hot-spots. 17.24% and 14% growth in property deals was respectively recorded by Thanjavur and Salem.
The registration of documents was brought down to 26 lakh last year. Till 2008, the registration of documents hovered around 27 lakh to 35 lakh. According to real estate enitities the past two months have been fairly good in terms of new sales. The prevailing market sentiment believes that the downward bias has been halted.
Drought hit delta districts observed brisk sales. Strong growth was also observed by the agricultural lands within the delta districts. Thanjavur region, comprising of Kumbakonam, Myladuthurai, Nagapattinam and Pattukkottai recorded good growth.
Close to 50% of the total sale was registered against agricultural lands with the urban areas claiming the rest. Proximity to the busiest national highways NH7 and NH45, have been attracting buyers to the industrial corridor of Salem, especially Hosur.
Sales are expected to further pick up as there is an abundance of choices which in turn is prompting buyers into window shopping. With the National Housing Bank (NHB) Residex (which tracks the housing prices in cities) suggesting a fall in real estate prices of several areas in the region of Chennai, the demand should soon pick up. It was also observed that the numbers for first time buyers too saw an incline.
Towards the western regions of the state, the towns of Namakkal and Thiruchengode reported strong property buying. Both the towns are popular for housing some of the best schools in the country.
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Chengalapet, Dharmapuri, Guduvancherry, Kancheepuram, Krishnagiri, Kumbakonam, Medavakkam, Myladuthurai, Nagapattinam, Namakkal, Neelankarai, Pallikaranai, Tambaram Tiruporur
