Tamil Nadu ranked second in transparency in realty sector

Chennai

The Real Estate Transparency Survey 2011-12 ranks Tamil Nadu second only behind Andhra Pradesh on various parameters while determining transparency. The state is followed by Maharashtra, Gujarat, NCR-Delhi and Karnataka on the transparency index of 20 leading Indian states. The study was conducted by the Confederation of Real Estate Developers Association of India (CREDAI) in association with property consultants Jones Lang LaSalle.

Of the five factors that have been taken into consideration while arriving at the ratings, Tamil Nadu also ranks second as far as availability of market information and reforms in urban local bodies are concerned. The report explains that there is easy flow of information in the sector through real estate portals, financial statements of listed developers and real estate indices, while several urban reforms have been carried out under the JNNURM. Colonel P Isaac, General Manager, Project Coordination of Appaswamy Real Estates says, “The interaction with customers helps us achieve this. At every stage of the deal, we update them with the materials used and their cost. We also ensure that the necessary governmental approvals are in place to proceed with buying and constructing a house or an apartment.”

“The study is the outcome of a survey, where the respondents were asked about parameters such as experience with government machinery, legal aspects, and time required for permissions and the levels of corruption. We have also studied government policies and their track record for deciding on factors such as inclusive and sustainable development,” says S Senthilkumaran, President, CREDAI, Trichy chapter.

In what would sound like music to the ears of buyers plagued by the prohibitive costs of the estimated super built-up area, more than 90 per cent of the developers have expressed their willingness to provide actual measurements for calculating saleable and carpet area to buyers and also agreed on the need to define a uniform carpet area and saleable area across the country. Mathews Joseph, Marketing Head of TVH says, “The market in Tamil Nadu is driven by the end user who wishes to spend his savings to buy his dream home; hence it has became prudent for them to transact with developers with a good reputation. Of late, we have witnessed new players in the real estate market, who are originally from other industries. They have good experience and now, we have some international real estate brands entering the market. These factors are also responsible for enabling the market to evolve.”

A majority of the developers are also not inclined towards disclosing the source of funds or the shareholding pattern in their projects. The report goes on to add that the proposed Real Estate Regulatory Authority will make the stakeholders more responsible towards their commitments and infuse more confidence, which is currently lacking in the industry.

Source: Times Property, The Times of India, Chennai