The Confederation of Real Estate Developers’ Associations of India (CREDAI), Chennai, has expressed concern over the recent decision by the government to levy registration costs of 9% on the total cost of the apartment. CREDAI Chennai on Saturday urged the government to rollback the hike as this would have adverse consequences on the potential homebuyers and government revenues from apartment registrations.
For a 535 sq.ft. house at Avadi costing around ₹23 lakh, the consumer would have to pay around ₹1.06 lakh under the old registration norm, but after the revision, they have to shell out a combined registration charge of ₹2.07 lakh, an increase of nearly ₹1 lakh.
“The decision to increase the flat registration fee with immediate effect will impact the government and homebuyers more than developers,” said Sivagurunathan, president, CREDAI Chennai. The hike would affect buyers who had already purchased the flat but not yet registered. The number of registrations and registration revenue would decline as a result. Booking cancellations can happen as a result of this.
“In general, it will have a detrimental effect on the housing business and will also impair the government’s goal of providing a home for everyone by the year 2030,” added Mr. Sivagurunathan
CREDAI Chennai has requested the government rethink its decision. “The increased flat registration costs will directly impact the affordability of homes for potential buyers. Owning a home is a dream for many, and such a hike will create additional financial burdens, making it more difficult for them to realise this dream,” he said.
