The State government’s decision to reduce the guideline value for properties by 33% has not enthused property developers and realtors in the city.
The move, realtors says, has been largely offset by the increase in the registration fee for sale, exchange, gift and settlement of properties to non family members to 4%.
“The move is not healthy and there will not be much benefit for flat buyers or property developers. It could only lead to generation of black money,” observed P.Ravichandran, president, Confederation of Real Estate Developers Associations of India (CREDAI), Tiruchi Chapter. Individuals buying residential plots may benefit marginally by the move, he said.
Agreeing that the move would not help check the “parallel economy”in the sector, R. Murugesan, Chairman, Builders Association of India, Tiruchi Centre, pointed out that there was huge gap between guideline value and market value of properties in some places. While the guideline value is much higher than the market value in some places, it is vice versa in some others. Such cases should be identified properly and the guideline values should be rationalised in line with the market prices.
“The across the board reduction in the guideline value is not going to help revive the industry which has already been badly affected by various issues including the implementation of RERA (Real Estate Regulation Act) and non availability of sand,”he said.
Mr.Murugesan also observed that apart from proper rationalisation of the guideline value of properties, uniform building rules should be introduced across the country, especially in the wake of the restriction on conversion of agricultural land.
Noor Mohamed, former president, CREDAI, Tiruchi chapter, said the move would not help bring about a revival in the construction industry. There will be only marginal benefit for buyers, he said.
