CHENNAI: Home developers in the city have hit out at the government’s higher composite rates for housing registration, alleging that the rates jumped around 120% to 150% from March dampening sales. Builders have urged the government to reduce the composite value rates and provide clarity in new regulations in the registration process.
Addressing reporters on Thursday, the consortium of builders urged the government to remove multi-tier composite rates ranging from 6% to 9% and introduce a uniform rate for all buildings with exception for affordable housing. They also requested the government to bring down the rate to 6% and raise the rates gradually.
The builders alleged that a single documentation system, which is in effect from December 1, 2023, is being implemented without groundwork leading to confusion among builders and registration officials. They called composite values published by the government arbitrary and out of touch with ground reality. “Multiple orders followed up with corrections have created confusion and uncertainty in property registration. These have severely affected the sale of apartments across the city in December,” said S Sivagurunathan, Credai-Chennai president.
Builders said housing sale slowed down in 2023 as a whole and there was a sharp decline in December. Real estate intelligence firm Anarock’s report on December 28 said housing sale in Chennai jumped 34% compared to 2022 with 21,630 units. However, builders call this report incorrect.
“We are not against the new single documentation system, but it has brought confusion and legal challenges to builders,” said R Ilankovan, president of Credai- Tamil Nadu. The composite documents allow registration of built property but lack of sale deed has made it difficult for us to make agreements before the apartments are constructed as most of them are sold before sale,” he added.