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

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 ...
 
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 ...
 
The contribution of property management companies of Dallas
Published by Nishaidhijames on August 10th 2012 | Real Estate
A city which is located on an area of 343 square miles with about 1,299,543 of population and also t...
 
The Roller Coaster Ride of Rental property Dubai
Published by Mark Castellino on December 1st 2011 | Real Estate
The best way to start up any business in Dubai is to find out the best location first then go for th...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
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...
 
Save your property through Landlords insurance
Published by Ashish Pandey on February 3rd 2012 | Finance
Having landlords insurance can be very advantageous for all the landlords and can protect the proper...
 
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...
 
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...
 
Welcome good tenants to your property by choosing the convenient way of screening your tenants
Published by Pamela Walker on March 15th 2012 | Real Estate
Landlords and property managers should understand that bad tenants can give them sleepless nights. S...
 
Three reasons why investment property repairs should be left to the professionals
Published by Ian Comnys on December 12th 2011 | Real Estate
Exchange licensee Ian Comyns shares a recent case which shows what can go wrong when landlords do th...
 
Know some facts before getting in contract for property buying
Published by John Mathews on July 20th 2012 | Real Estate
While you are looking to buy a home, there are certain things that you are to take into consideratio...
 
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 ...
 
Hire estate agents Marlow for smooth property deals
Published by Ricky Charles on January 4th 2012 | Real Estate
Many businesses have flourished and doomed but the real estate business has somehow managed to keep ...
 
Assistance from a good estate agency is essential in property investment
Published by Glyn Jones on January 4th 2012 | Real Estate
The estate agents can help you with the property dealings. They can make it really very easy for you...
 
Some things to consider for first time property buyers
Published by Jeevan Nanthan on May 27th 2012 | Real Estate
All the points mentioned above if followed aptly can surely help in taking a wise decision while buy...
 
Mohali property offering plethora of investment options
Published by Deepti on April 12th 2012 | Real Estate
Mohali, often termed as the Eco town of Punjab, is emerging as the favorite place for property in...
 
Buying a home Vs Renting a property
Published by Glyn Jones on December 30th 2011 | Real Estate
Buying or renting a property has their own merits and demerits. Where renting a property gives short...
 
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...
 
Why you should rent a property for your family?
Published by Andy Wagon on February 15th 2012 | Real Estate
To determine which properties are good indeed quite difficult, especially when some properties are n...