After the Tamil Nadu government raised the stamp duty and registration fees for various services provided by the state registration department, there was a 25% decrease in flat bookings. Builders assert that cheap housing hotspots like Avadi, Ambattur, OMR, and Tambaram are the worst affected.
On July 8, the state government announced a rate increase for 20 registration department services, including the transfer of power of attorney (POA) to a third party and the registration charges of construction agreements. The change went into effect on July 10.
According to Sridharan, CREDAI’s national vice-president (south), first-time purchasers will face the brunt of the increase. “This increase will have a significant impact on redevelopment projects with multiple units,” he explained.
“For power of attorney, stamp duty rates have increased from a fixed amount of Rs 10,000 to 1% of the property’s market value.” Construction agreement registration fees have risen from 1% to 3%. This has had a significant influence on the affordable housing category,” said S Sivagurunathan, president of CREDAI Chennai.
According to K K Thirumalai, head of the Flat Promoters Association-Ambattur and Avadi, houses in the Rs. 60 lakh bracket are the most popular in regions such as Avadi and Ambattur. “Real estate has just recently begun to boom in our neighborhoods after Covid. “This increase will have a significant negative impact on our customers,” he explained.
According to G Mohan, head of the Chennai Southern Builders Association, residences up to Rs 1 crore are in high demand in areas between Guindy and Tambaram. “Those who have booked apartments with us are arguing with us about the additional amount they must pay.” “We are concerned that many people will cancel their bookings,” he said.