Sharp decrease Property document registration in Coimbatore district from April to December 2012 dropped by 50,000 compared to the same period last year, finds out M. Soundariya Preetha
In a year (2012-2013) that saw power cuts, deficient rainfall, and economic slowdown, property registrations in Coimbatore District also seem to be affected.
According to registration data, document registration in the district from April to December 2012 dropped by 50,000 compared to the same period last year. While 1.5 lakh documents were registered from April to December last year, it was about a lakh this year for the same period.
However, with increase in guideline value, the department’s revenue increased from Rs. 402 crore (April to December, 2011) to Rs.430 crore for the same period this year.
The Registration Department authorities will also explore by January 15 if there is a need for revision of guideline value in any location.
K. Jayaraman, president of the Coimbatore Association of Realtors, says that there is a slowdown in real estate and property purchases mainly because industries here are affected by several factors.
Coimbatore has a large number of small and medium-scale enterprises and they are affected by power shortage. Substantial investment in land, plots, or properties is driven by the industrial growth in the district.
Further, the inventory on the housing sector is also high here. With the slowdown now, purchases are mainly in the outskirts or affordable properties and land.
According to P. Karthikeyan, president of Coimbatore chapter of Confederation of Real Estate Developers’ Association of India, one of the reasons for the drop in registration of documents is the increase in guideline value.
Unlike before when consumers booked a property in advance, they prefer to wait till the completion stage. The construction industry is also facing escalation of costs.
New industrial projects should come up in and around Coimbatore to give a boost to industrial activity here.
The demand in Coimbatore is mainly for properties in the Rs. 40 lakh bracket.
When the economy revives, power situation improves, and industrial activity picks up in the region, investments and demand for properties will also go up.
New industrial projects should come up in and around Coimbatore to give a boost to industrial activity in the region
Registration Department authorities will decide by
January 15 if there is a need for revision of guideline value
Coimbatore has a large number of small and medium-scale enterprises and they are affected by power shortage
Substantial investment in land, plots, or properties is driven mainly by the industrial growth in the district