Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

A Rapid Hike in the Housing Sector

By Vinay Jain Subscribe to RSS | July 4th 2012 | Views:
loading
 
  



At a time when real estate values started stabilising in and around Chennai, the government of Tamil Nadu has increased the rule values for realty registration functions by hiking the values from sixty per cent to three hundred per cent effective April one. This has sent shock waves among the business and therefore the landowners and property developers are in a piquant state of affairs currently.

The government’s reduction in stamp duty by one per cent has not gone well with the business when the rule values were raised to unexpected levels. The realty sector is in for rebellious times owing to sudden and remarkable hike in guideline values and therefore the worst hit sector are going to be reasonable housing phase.

According to official sources, though the revenue for the 2 month amount (April and May) was up by Rs one hundred crore, the amount of transaction has come back down drastically. business sources say that town space transactions fell through owing to reluctance on the part of consumers to soak up the hike in stamp duty.

In vibrant industrial areas like Whites road, the rule price soared to Rs 16000 higher than the market price. In different town areas like Abhiramapuram, the price for residential property in Chennai is quite the industrial value. The state government in their anxiety to curb the unaccounted cash in realty transaction has sent a wrong signal to the market which can adversely impact the housing development.

Land transactions aren't happening today not attributable to the steep hike in guideline values alone however owing to the cascading impact of RBI restrictions on bank funding to realty sector, uncertainty in FDI investment, world meltdown, higher expectations of PE funds and soaring land price. What has aggravated the entire situation additional is that the sudden hike in guideline values.

The worst hit within the current situation is that the reasonable housing phase and therefore the common man for whom the dream of owning a shelter can solely get longer. Though official sources claim that the hike in guideline values vary from sixty per cent in suburbs and outermost areas, lack of development and lesser margins for developers won't encourage them and solely prolong the general development of reasonable housing within the returning months.

Yet another phase that bore the brunt of the hike in guideline values is that the homeowners in exigencies. The distress sale isn't happening due mainly to the hike in guideline values.

While guideline values within the town are over market values, within the suburbs it's the reverse, which may be a matter of concern. This disparity is partly owing to the slow growth of realty costs in suburban areas. Though properties are obtainable at lower rates, we've to pay a better stamp duty and registration fees there as they're calculated based mostly on guideline values, that are over market costs.

There is conjointly a region of developers who feel that in some areas, the rule price revision has been so much too steep. With such upward revisions, middle income individuals can realize it troublesome to purchase property in Chennai. Already, several of them are moving to suburban locations. However, so much this argument can cut ice may be a matter of dialogue.

Even when the rule values were low, builders kept apartment costs high, who ended his five-year look for an apartment a month ago.

Vinay Jain - About Author:
PropTiger is an independent real estate advisor with a pan-India presence. We aspire to be your first port of call if you want to buy a property in Chennai.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/a-rapid-hike-in-the-housing-sector.htm

Related Real Estate Articles Subscribe to RSS

Strata property investment advantages
Published by Chris Whelan on December 27th 2011 | Real Estate
In almost every country strata management property investment is getting more popularity due to its ...
 
Locate a property in Kolkata of your Choice
Published by Simmie on November 30th 2011 | Real Estate
Looking for a property in Kolkata? Ever looked up a classified ads web portal in the property sectio...
 
Letting agents and property to let
Published by Glyn Jones on December 6th 2011 | Real Estate
With the estate agents investing in the real estate market becomes really very easy. This allows you...
 
Building a "Buy to let" property portfolio
Published by Jordan Beard on May 9th 2012 | Real Estate
Investing in a portfolio of rental properties in desirable areas throughout the UK is a sure fire wa...
 
Know about property management in Marlow
Published by Ricky Charles on January 4th 2012 | Real Estate
In most parts of the world, property rates are going up and people who have invested in property are...
 
Best price property for sale in Mumbai
Published by Andy Wagon on February 14th 2012 | Real Estate
Owning a home is more than one can indeed serve as an investment in the future, especially if house ...
 
Lease your property for commercial strata management
Published by Chris Whelan on January 25th 2012 | Real Estate
Everyone should follow some qualified process during leasing their commercial strata management prop...
 
The demand of property in Delhi NCR
Published by Maaya on May 24th 2012 | Real Estate
Having an own land or property in Delhi NCR is like a dream, the prices of properties are increasing...
 
Greater Noida property getting costlier
Published by Sanjay Kumar on August 1st 2012 | Real Estate
In the commercial category for IT/ITES properties, consumers can ought to shell out Rs 29515 per sq ...
 
Invest on Penang property to enjoy financial security in future
Published by Rick Foster on January 19th 2012 | Real Estate
Everyone out there wishes to secure their future in terms of finances and investing on the property ...
 
Investing in property is what sound investors suggest
Published by Sophia Milller on December 13th 2011 | Real Estate
South Africa is one of the most developed countries in the entire continent of Africa. Does this mea...
 
Look out for the best property in Houston, Texas
Published by Brad Hermes on May 25th 2012 | Real Estate
Houston real estate market is reaching great heights in the United States. As the demand of housing ...
 
Buy residential property on rent
Published by Vicky Martin on June 18th 2012 | Real Estate
Never neglect tenant issues that are brought to your attention. This leads to dissatisfaction, late ...
 
Real estate agents for your property needs
Published by Glyn Jones on June 4th 2012 | Real Estate
The estate agents can help find the right kind of properties that suits your specific requirements a...
 
What a property Valuation Report Shows Us
Published by Ariel Linford on April 18th 2012 | Real Estate
Property valuation report is the best and easiest way to get a perfect and accurate value of your pr...
 
Mumbai property price is not expected to fall in near future
Published by Prop Tiger on July 18th 2012 | Real Estate
This normally happens throughout the end of quarter, as a result of some loans are falling due for r...
 
Get the best value of your property with Folsom Property management
Published by Nishaidhijames on August 23rd 2012 | Real Estate
Sale and purchase of property is an important part of man’s life. A person always tries to buy a h...
 
Real Estate Agent can be a good Profit maker for your property
Published by Mayank Gandhi on February 28th 2012 | Real Estate
feedbackhere.com: We provide easy to find Real Estate Agent for consumers vendors to make searching ...
 
Reasons for hiring an expert real estate agent to invest in property
Published by Deepti on April 17th 2012 | Real Estate
Buying your dream home for the first time is an incredible learning experience. Today, with the help...
 
Real estate agent is helpful to find suitable property to invest
Published by Glyn Jones on January 13th 2012 | Real Estate
The estate agents can be very much helpful in finding the right kind of property or investing in the...