Notwithstanding the apprehensions raised by a section of the real estate promoters that the draft market value guideline would prove to be a market dampener, Registration Department officials say that the revised guideline values reflect the market value of properties to a large extent.
According to sources in the department, only 21 objections have been received so far from the public after the draft market value guideline was released. A few of the objections relate to the proposed guideline value in some of the newly added residential areas in the suburbs of the city. The objections would be considered by the district level sub-committee headed by the Collector and changes, if any, would be notified again, inviting public suggestions or objections.
The absence of large number of objections by itself goes to prove that the guideline values reflect the market rates, an officer of the Department observed. “We have held extensive consultations before preparing the draft. The revised values reflect at least 80 per cent of the market value of the properties,” the officer said.
The draft has been prepared after verifying revenue records and the land records available with the respective local bodies, and field inspections. The draft has been prepared revenue-village wise and approved by the taluk level committee and sub-committee before being released for public verification, he said. The market value guideline would come into force from the date to be notified by the government.
Though none of the organisations representing the builders or real estate promoters have reacted openly to the revision in the guideline value, some of the real estate brokers feel that the steep increase in the guideline value would lead to a corresponding increase in stamp duty for buyers. This could possibly dampen the market, which has already witnessed a slow down in recent months, says a real estate broker in the city.
But officials dismiss this apprehension as baseless saying that the revised guideline value would bridge the huge gulf between the existing guideline value and the market rates for most parts of the city.
For instance, a square of feet land in the city's prime commercial area of N.S.B.Road has now been fixed at Rs.15,000, which is much closer to the market rates that hover even above this. The previous guideline value here ranged between Rs.2,500 to Rs.4,000 a sq.ft., way too far off the market rates. The market value guideline in Thillai Nagar Main Road, another commercial area, has now been revised to Rs.7,000 from Rs.1,660 a sq.ft.
Residential areas in the different cross streets in Thillai Nagar has been revised to Rs.5,000 a sq.ft. Officials said they have taken care to revise the guideline value for different parts of a same locality, depending on the facilities available and their market value. The developments that have taken place over the last five years, the basic amenities available in the particular locality have all been taken into consideration before the fixing the revised guideline value, they said.