THIRUVANANTHAPURAM: Property registrations in the state fell to a new low in September this year, indicating a slowdown in economy. The Registration Department’s data reveals that the number of real estate transactions in September was 59,563, a decline of around 17 per cent from 71,246 registrations during the same period last year.
Officials cited the economic slowdown and the dip in apartment sales after the Maradu flats issue as possible reasons for the sharp decline in property registrations.
“Fears of economic slowdown have an impact on property sales. The half-yearly figures show only a marginal increase in registrations compared to the previous year,” said A Alexander, Registration Inspector-General.
The total number of property registrations till September was 4,08,590, fetching `1,578.81 crore for the government.The figures for the corresponding period of the previous fiscal were 4,07,148 and `1516.6 crore.
Apartment registrations showed a dip after it became clear that the illegal apartment complexes at Maradu
in Kochi would be demolished.
“We are collecting data on the sale of apartment complexes in the past few years. We can arrive at a conclusion only after studying the data. Some sub-registrar offices have informed us that there is indeed a fall,” said Alexander.
CREDAI Kerala Chairman S Krishnakumar said the Supreme Court order on Maradu demolition was a big blow to the real estate sector. Business across the state is witnessing a significant drop, he said.
“We would have easily overcome the recession blues since the banks are offering liberal housing loans. But the impact of the Maradu issue is even bigger. It has shattered the confidence of customers and builders,” he said. Krishnakumar said the government should come up with a slew of measures to boost customers’ confidence.
“Firstly, there should be a transparent system to approve housing projects. Secondly, the government should stand by the approvals granted. It should make a public announcement in this regard,” he said.
The Registration Department will conduct a probe to detect cases of undervaluation in the registration of flats and commercial buildings during the past five years. The move comes in the wake of reports of gross undervaluation in the sale of the controversial flats in Maradu.
Also, the department is planning to expedite the settlement of around six lakh undervaluation cases already detected. Those who fail to pay the penalty will face revenue recovery.