December 18, 2023: The Tamil Nadu government has decided to withdraw its order regarding the introduction of a three-tier guideline value for apartment complexes in Chennai and its suburbs, which was announced a week ago. The state government restored the street and road-based composite value for registration, according to a TOI report.
According to the three-tier guideline value, each neighbourhood would have three categories of apartment complexes– basic, premium and ultra-premium – based on amenities. This meant that the guidance value would not differ according to the area but according to the project type. The basic category includes housing societies without any amenities, the premium category includes those with a swimming pool and/or clubhouse and the ultra-premium category includes those with more amenities.
The media report stated that developers and homebuyers opposed the formula as it involved higher registration charges since guideline values differ from apartment to apartment even on the same road and street.
For example, a flat on Anna Nagar Second Avenue will have a higher composite guideline value than the 6th Main Road, whereas the abutting lanes will have lesser values. The three-tier formula discounted such changes and instead restricted it to only three categories.
As cited in the media report, P Kruthivas, secretary, Credai, said that many registrations were kept on hold due to the three-tier formula hikes in registration charges and unstable guideline values.
According to builders, in areas such as Anna Nagar and Poonamallee, the prices of houses had gone up by Rs 6 lakh to Rs 8 lakh due to the registration hikes. The government should incentivise the Chennai housing sector to see a boom, P Kruthivas said.
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