The Hindu : Tamil Nadu / Chennai News : Suburbs outgrow city in property transactions

Online edition of India's National Newspaper
Friday, Sep 14, 2007
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Tamil Nadu

Tamil Nadu - Chennai

Suburbs outgrow city in property transactions

A. Srivathsan

Chennai is ahead in property value and contributes to slightly over half of the State’s revenue collection

CHENNAI: Suburbs of Chennai literally outnumber the city when it comes to property-related registrations, a pointer to the growing customer preference for outskirts and the availability of land in these areas.

The suburbs have witnessed around 100 per cent growth in property transactions over two years since April 2005. The Sub-Registrar office in Sriperumbudur takes the distinction of registering the maximum number of property deals in the State.

The number of documents registered during 2005-06 and 2006-07 reveal a substantial growth in the number of transactions at the Sub-Registrar offices in Tiruporur, Tiruvallur, Walajabad, and Tambaram. The offices at Velachery and Neelankarai have not seen a dramatic increase in the numbers, but maintain a steady rate of transaction.

The city, however, has outdone the suburbs in terms of property value. Between April 2006 and March 2007, the three zones within the Chennai city have registered about 3.7 lakh documents and netted about Rs.1,384 crore. Of this transaction, about 80 percent is property related. Chennai city alone contributes to slightly over a half of the State’s revenue collection , according to senior officials in the Registration Department.

Chennai recently witnessed two high-value property transactions. In July, a property near Anna Arivalayam on Anna Salai was registered for Rs. 202 crore at Rs.10,500 per square feet. The guideline value of this property, when it was registered, was only Rs.5,556 per sq.ft. It was subsequently revised to Rs.8,000 per sq.ft.

A single residential property in the Boat Club area was registered for Rs.175 crore in March at Rs.16, 657 per sq.ft. This value places Boat Club well above Usman Road, where the guideline value is only Rs.12,000 per sq.ft. The Government-prescribed guideline value of Boat Club before August was Rs.2,885 per.sq.ft and after revision it is now Rs.8,400 per sq.ft.

Senior officials in the Registration Department say that going by the trend, the number of property transactions has not reduced because of the rise in guideline value. But they add that the numbers, which at present are being collated, may not be buoyant since March this year owing to the slow-down in real estate transactions. The picture will be clear in another two months, they say.

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