Land in Chennai: Spiraling values
According to an article in The Hindu on the 14nth September, the number of registrations of property transactions on the outskirts of Chennai far outnumber those anywhere else, including the city. According to the article, the suburbs have witnessed around 100 per cent growth in property transactions over the last two years, with the Sub-Registrar’s office in Sriperumbudur registering the maximum number of property deals in the State! Registrations during 2005-06 and 2006-07 show substantial growth in transactions in Tiruporur, Tiruvallur, Walajabad, and Tambaram. Velachery and Neelankarai have not, apparently, seen as dramatic an increase in the numbers, but maintain a steady rate of transactions.
The city, however, has outdone the suburbs in terms of property value, with the three zones in Chennai registering about 3.7 lakh documents netting about Rs.1,384 crore between April 2006 and March 2007. Chennai alone contributes to slightly over a half of the State’s revenue collection , according to senior officials in the Registration Department, with over 80% being registration of land deals. Chennai recently witnessed two high-value property transactions. A property near Anna Arivalayam on Anna Salai was registered for Rs. 202 crore at Rs.10,500 per square feet in July. 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 residential property in the Boat Club area was registered for Rs.175 crore in March at Rs.16, 657 per sq.ft. The Government-prescribed guideline value of the Boat Club area 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 have not reduced because of the rise in guideline value. But they add that the current number of registrations, which at present are being collated, may be lower since March due to the slow-down in real estate transactions. What does seem clear though is that as demand continues to increase, both from industry and for residences, the value of land will only appreciate. The demand, particularly in the outskirts, seems insatiable as Chennai’s urban sprawl spreads, spurred on by developments like the IT Corridor, the MRTS and the new ring road. The proposed metro will also make it easy and quick to get into the city. Hopefully, this will eventually take the pressure off the city centre as nodes for business, commerce and residences will continue to develop, so that we have a decentralized form of development for which Chennai is now taken as an example. In the meantime, anyone with a plan of owning land on which to build the house of their dreams will have to move further away to afford it.
David,
Have you merely rephrased the article? Why wasn’t a link to the original story provided? I am reasonably sure you did not go around asking ‘Senior officials in the Registration Department’ and that the reporter of the newspaper actually did. Why do you want to claim someone else’s hard work? And why is there no analysis but just reporting (which, isn’t even your own) as though this were the City section of newspaper?
On what basis are these guideline values calculated? Is it based on the average per capita in that area? Actually, it seems to be based on artificial real estate inflation (A sort of false demand). Do you think common citizens of Chennai can actually afford a property in the upwards of Rs.7000 per sq. ft. Seems ridiculous to me !!!
The skyrocketing prices in real estate in Chennai (and for that matter anywhere in India) are because of three B’s Builders, Brokers, and B.E.s (or sometimes M.C.A.s)! Some years ago, one could buy a flat or house for 10 lakhs, but nowadays someone need at least 50 lakhs to buy a small flat or house in chennai.
The gap between rich and poor is widening so much that it could lead to some revolution soon, as it has been the case on a number of occasions in the previous history. Expect the doom soon! Expect a revolution soon from the poor people who have been crushed by the so-called new rich people emerged from the new fields such as software, etc.
Nilu –
Mr. David starts his blog with “According to an article in The Hindu on the 14nth September” I don’t know what else you want. If you are happy reading Hindu, why the hell are you here. Metroblog gives me an option of getting messages from different sources, whether it is Hindu, Dinamalar, Dinakaran etc. People like you don’t want to do any work but you will be first in line to criticize others.
django –
And then there is our django. This third rate loafer, who I guess is related to our politician comes in as if the savior of Tamil and questions why this is in English. What do you expect here? If you hate English so much why you don’t create a blog on Tamil and comment there? I am sorry which you can’t do; I bet you don’t have the knowledge or the resources.
If you know the answers why can’t you post something? No you can’t…All you can do is questioning others.
Madras is the only city, where a third rated person like you can grow and post a filthy message like this.
I bet you work for a big conglomerate which you got in by luck, and you try to vent out your true self in blogs like this. Which slum are you from?
Who ever it is,
Why was the message by django deleted? We do want to give freedom speech and expression. Don’t suppress…..It’s my thought…..
Murali,
When I was in fifth grade, I was taught something. About how an assumption that’s implicit ends with the sentence. Even if you were not, I don’t think you should get offended. Since, I have merely accused David of rephrasing — wihout linking. Which, even David would not deny. And you should not either — as the part you have quoted simply proves it.
The reason someone would write something in public domain — regardless of the medium — remains the same. That he/she has something original to say. If what David wanted to say was already said in a National Newspaper, I see no merit in the original story being rephrased here. If you disagree, which you are entitled to, you could start a blog and explain your position. I’d even drive a lot of traffic that way. But do remember, the criticism here is merely based on what I consider to be a universal preference — the desire for something original.
David, I came across some of your blogs and find them quite interesting. Keep it up.
SIR,
As Sm1 Pointed out , I disagree with that person that the rich are getting richer and poor are crushed.The Truth Is Indian Economy Is Booming and the poverty level has come down drastically.The Middle class have become upper class and relatively poor people have transformed In2 Middle Class.
If you take any country or city,specially a country and city(Chennai) like ours there are always some bad elements who dont allow the city 2 grow Just for their Personal Interests.
For Ex, Govt builds small low cost apartments for people living in slum , but @ the end of the day , those people lease it out 2 sm1 and go back to the slums as they are not ready to work and want 2 earn easy money.If such is the case , how will the So called Poor people Improve.As the saying goes ‘No Pain , No Gain’.
Another Thing about the city Is , If 1 govt brings In some good project the other govt opposes It straight away.like Sethu samudram project now , removal of all hoarding in encroachments during Jayas period and lot of other things.If there has 2 be a revolution , it should be against the govt for Not providing proper Infrastructure whichever govt It Is.
Guys another Important factor about the city Is , No Offence Meant 2 Any1..If you see the Number of temples coming up on the roads(on the middle of the road or the encroachment) its increasing day by day by some dirty elements who want 2 cheat the public and make money.Its only a hurdle to public.Dont we all know temple Is a place that has 2 be clean and tranquil and shouldnt cause a hurdle to sm1???If you travel on the ECR road there 1 big So called temple that Is on the middle of the road which causes a hurdle to the drivers.
So 1ly If all these things Improve and Egos destroyed our city can be transformed to the way we like.
We Sincerely hope for a better and cleaner Chennaai!!!!!!!!!!!!