Guideline values in Chennai and its suburbs are set to change significantly. Going by the revision proposed by the State government, which will be put up for public comments from October 14, values will increase by two to four fold at many places within the city and by about five to six fold in the suburbs.
Dr. Radhakrishnan Salai will be the most expensive real estate in the city with a guideline value of Rs.27,000 per square feet.
The existing guideline value is Rs.19,675. In other words, registration of a plot measuring one ground (2400 square foot) here has to be registered for a minimum value of about Rs.6.4 crore.
Property on Anna Salai and Usman Road will be the next most expensive, with a proposed guideline value of Rs.25,000 and Rs.20,000 respectively.
“It is not surprising that the Boat Club Road does not figure on top of the list even though properties there are the most priced possession. Not many plots change hands in Boat Club area and hence transaction values do not show steep increase,” said officials familiar with the land registration process.
The guideline value in about 10 areas within the city such as Anna Nagar and Purasawalkam would not be increased since there was a revision in those areas only in January 2011.
The value of properties in the suburbs particularly along the major roads has been substantially increased. For instance, the existing guideline value in Tiruporur along the Rajiv Gandhi Salai is about Rs.400 per square foot, and it is now proposed to be revised to Rs.3,000 per square foot. Similarly the guideline value in Guduvancheri is proposed to be revised from Rs.550 to Rs.4,000 per square foot.
Guideline value is the mandatory minimum value for which a property has to be registered.
The registration costs, which include eight per cent stamp duty and one per cent registration fee, are based on the guideline value. Hence, any revision in the values would imply increase in the registration costs.
Last year, Chennai alone contributed half of the Rs.5,000 crore revenue collected through registration of documents in the State.
“It is four years since the guideline value was revised. During this time, the market value of property has increased phenomenally and the guideline value never captured this increase. The proposed revision is an attempt to get closer to the market value. After a year-long study of property transactions, field survey and professional consultations we have proposed the revision,” said the government officials.
The proposed revised guideline value will be open for public comments and objections from October 14 at the respective sub-registrars' offices.
After reviewing public opinion, the guideline value would be fine-tuned and republished again for comments after a month.
By the end of next month, the values would be finalised and uploaded on the Registration Department's website.
Keywords: real estate