The prolific growth of Chennai in all three directions has impacted land price to a considerable extent. Lack of adequate housing development and high cost of housing are attributed to the steep hike in land prices. There is no scientific rationale to value the land price and on most occasions, it is the demand-supply mismatch that tilts the price.
According to industry sources, property developers are unable to get access to the land owners and will have to deal with the power of attorney holders. The due diligence exercise involving whether the power has been revoked or not is again a time consuming affair and unless the location justifies, developmental efforts were in vain.
Revenue records are still not updated, even though computerisation process started as early as in 1986 and unscientific land use has restricted urban development area. The process of verification even today involves travelling several miles which again is a time consuming process especially when the developer is entering the Chennai for maiden development. Recently some of the records have been shifted to Tiruvannamalai. The agony and the associated hardship for property developers need not be overstressed in such a scenario.
Yet another factor inhibiting housing development is the archaic rules and the inability of the related government departments to agree on vexatious issues. For instance when DTCP finds there is a proposed road admeasuring 60 ft, FSI at 2.5 is sanctioned whereas CMDA does not agree with the view unless there is a road already laid and the developer ultimately lands in reduced FSI. All the additional cost is ultimately passed on to the buyer. The industry sources have already voiced concerns that because of the delay in approval process alone, a consumer has to fork out Rs 233 per sqft as additional cost while buying an apartment in Chennai.
This is apart from the government levies which is considered 33% of the unit cost. However, the CMDA has recently introduced several measures to reduce the delay including green channel option.
Source: http://content.magicbricks.com/hike-in-land-prices-in-chennai
No comments:
Post a Comment