Property registration falls on economic slowdown, high guideline value

Chennai: The number of properties registered in the state has declined substantially due to economic downturn and high guideline value. The number of properties transactions registered in the state has come down to 25.73 lakh in 2014-15 from 26.53 lakh in 2013-14, the policy note of the Registration Department tabled in the state Assembly on Monday said. All time highest number of transactions of 35.18 lakh was made in 2011-12 before the revision of guideline value. Despite the fall in transactions, the registration department’s revenue has gone up to Rs 8,279 crore last year over previous year’s Rs 8,055 crore.

The increase was due to the steep revision of guideline value from April 2012. “In TN, the problem is compounded with steep increase in the guideline value. It is not showing the true trend of market conditions,” Ajit Kumar Chordia, president, Confederation of Real Estate Developers Association of India (CREDAI), Chennai, told DC. There is a strong case for reducing guideline value, he said. T. Chitty Babu, chairman and CEO, Akshaya Homes Private Limited said the biggest challenge for the realty sector is guideline value which has gone beyond the market value across the state.

Land prices have not seen the growth that guideline value has, he said, adding that number of transactions have come down as sellers demand minimum guideline value fixed by the government which buyers are not willing to pay. Stamp duty: Registration minister M.C. Sampath announced that slashing of stamp duty by one per cent for those type of documents for which eight per cent duty is levied. Replying to the demand for grants of his department in the Assembly here, he said that at present, eight per cent stamp duty is being collected for registering document of settlement among non family members and release of partnership among non family members.