Tamil Nadu’s realty sector is showing signs of revival. November recorded the highest growth in the number of property registrations with a subsequent rise in revenue this year.
The sector had experienced fluctuations since April. While the number of documents registered showed a growth of 14.65%, revenue shot up by 2% this November, compared to the same month in 2018.
Registration department revealed that 2.32 lakh property documents were registered in November across the state — an increase of nearly 30,000 documents, compared to the corresponding period in 2018.
Revenue to the tune of Rs 920 crore was collected in November last year, while last month, revenue generation was Rs 946 crore. September witnessed the largest revenue collection of Rs 1,056 crore this fiscal (2019-2020) with 2.38 lakh sale deeds registered that month. However, registrations dropped in October.
The jump in property registrations comes after April, June and August witnessed a sharp decline in the number of registrations and revenue, compared to the corresponding months in 2018.
Registration department sources said there are indications of revival in the property market.
“If there is an increase in number of documents registered, but revenue was on the downtrend, it indicates more number of transactions pertained to mortgage. In the case of November, both documents registered and revenue have gone up, highlighting the number of property transactions that have taken place,” a senior registration department official told. Another reason was that the number of auspicious days that people prefer for land registration were more in November, the official added.
Of the total Rs 7,267 crore revenue generated through land transactions in 575 sub-registrar offices across Tamil Nadu between April and November, 45% was generated in the Chennai zone comprising the city, Chengalpet, Kancheepuram and Tiruvallur districts.
Real estate sector sources said sales was picking up after initial sluggishness a couple of months ago. W S Habib, Confederation of Real Estate Developers’ Association of India Chennai chapter president, said November witnessed better sales in the residential sector, including housing plots. “Maximum sales was in the affordable and mid-level segments in the price bracket of Rs 25 lakh to Rs 80 lakh,” he said.
