Home sales down by 30% in Chennai, says realtors’ body
In July and August 2023, there were fewer registrations than during the same period in 2022 in Chennai
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CHENNAI: The Confederation of Real Estate Developers' Associations of India (CREDAI) highlighted that home sales in Chennai plummeted by 30 per cent following an increase in registration fees.
"The Chennai real estate market has been a hub of activity post-Covid, with robust sales and increasing demand. However, 50 per cent increase in guideline values (GLV) earlier this year, the sharp registration fees in July 2023, and the insistence on registering the entire apartment, not just the UDS leading to doubling or trebling of stamp duty costs have had undeniable impacts on the market dynamics, resulting in about a 30 per cent decline in home sales," S Sivagurunathan, President, CREDAI Chennai, said.
He added that typically, the registration-related fees and stamp duty for a ready Rs. 60 lakh apartment has gone up from about Rs 2-Rs 2.5 lakh to about Rs. 5.5 lakh and there are cases where the impact exceeds even Rs. 15 lakh.
In July and August 2023, there were fewer registrations than during the same period in 2022 in Chennai.
"We understand the need for government revenue, we urge policymakers to reconsider the scale of the registration fee increase and its impact on middle-class home buyers. We remain committed to working together to find a balance that supports government revenue goals while also maintaining a vibrant real estate market. The sudden dip in home sales has raised concerns about the broader economic repercussions, including potential job losses in the real estate and construction sectors," he pointed out.
He noted that the present increase is the third hike in fees, duty, and practice by the registration department in the last few months, including the increase in the guideline value and other services such as construction agreements and power of attorney.
Urging the government to roll back all the changes made in the last few months, Sivagurunathan said that the decision to hike registration fees has left potential home buyers facing increased costs and, in some cases, uncertainty about their ability to purchase a home.
This abrupt change has also caused concern among real estate professionals, who have been navigating a challenging market landscape.
