TIRUCHY: Tiruchy’s growth, thanks mainly to mushrooming of IT and related firms, augurs well for Tamil Nadu’s economy. While speaking at an awareness programme recently, the Principal Commissioner of Income Tax (Madurai Region) T Vasanthan said Tiruchy’s Gross District Domestic Product (GDDP) for 2024-25 stood at Rs 71,236 crore, and per capita income was Rs 2.34 lakh. “TN’s per capita income for 2024-25 was Rs 0.96 lakh, while the national per capita income was Rs 1.15 lakh. So, Tiruchy’s per capita income is higher than both the state and national average, which is a matter of pride,” he said. On the flip side, the growth has sent real estate prices and cost of living on an upward spiral.
According to real estate consultants, rent has increased by 20%-25% in the last two years, with some localities witnessing a jump of over 30%. K Abdul Rahim and his wife Parveen of Karumandapam, rented a house without car parking at Mahalakshmi Nagar by paying Rs 3,000 more so that it would be convenient for their daughter to board her college bus. “The owner demanded rent of Rs 15,000, and 10-month advance payment, which was my five-months salary. We had to move in to help our daughter” Many owners increase rent by 10% every two years for old tenants, For new tenants, the hike is around 20 % to 30 %. For a middle-class family with monthly income of Rs 30,000 - Rs 50,000, the expenses stretch their finances.
Ramakrishnan (name changed) a retired government employee who owns a house in Thennur said, “Maintaining a house is not easy. Property tax, water tax and electricity tariff have gone up. Last year, I spent Rs 50,000 to fix the leaking roof. If I don’t charge a decent rent, how can I cover these costs? ” A real estate consultant said, “The city is attracting professionals due to growth in IT sector and infrastructure. But the supply of quality and affordable rental homes has not kept pace. People are willing to pay more because they want to live near good schools or workplaces. This trend affects middle-class families the most.”
Citing the Rent Control Tribunal Act and Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017, S Muthukumar, advocate and commissioner of oaths in Tiruchy said neither house owners nor tenants follow the legal provisions. Every district in Tamil Nadu is supposed to have a Rent Control Officer to oversee and fix rent based on the property , but in practice, these regulations are often ignored. “As a result, owners charge rent as per their needs. Many do not provide rent receipts or rental agreements to tenants. These are usually given only to leaseholders,” said Muthukumar.