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Property Price Trends in Chennai

Last updated: July 14 2020
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  • Re : Property Price Trends in Chennai

    We CA love numbers to analysis business this is two year old data clearing showing slowdown started 2 years back and worst to come. One thing is clear ticket size has increased maybe Booz of big increase in circle rate or guideline value

    RE overpriced still fancy then 4% yield is must anything less is overpriced

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    • Re : Property Price Trends in Chennai

      Modi and BJP Govt in Central -
      What does this mean to the RE market
      Speculation is that market will see a modest uptick due to potential business friendly climate enticing foreign investment coming in.
      Also speculation / rumor is that RE will opened up for more FDI players.
      Any truth, or pure speculation ?

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      • Re : Property Price Trends in Chennai

        Modi strongly opposed TDS on property transactions.

        I hope he will stop that practice.

        Withdraw TDS on property transfer: Modi writes to PM - Indian Express

        http://www.hindustantimes.com/india-...e1-839668.aspx
        Last edited April 18 2014, 04:18 PM.

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        • Re : Property Price Trends in Chennai

          Originally posted by Economist View Post
          I support Modi on this matter it is so hard to calculate and builder have no idea every payment u make to builder it is ur duty to deduct to much paper work it is alright for land and full payment part payment needs some change
          I would like to see some kind of digital documentation like demat will go long way in accounting and accountability.
          Like if I have buy a property I need to open a property demat account maybe need a white paper on this
          Last edited April 18 2014, 06:20 PM.
          RE overpriced still fancy then 4% yield is must anything less is overpriced

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          • Re : Property Price Trends in Chennai

            The rationale for the move— collection of tax at the earliest and have a reporting mechanism of transactions in the real estate sector.
            The TDS is a good move, no reason to remove it. May be they can make it easier, like online filing or something. I think filing is an issue and prob is more tedious and time consuming.
            Every person selling property needs to have PAN number. PAN number is used for everything, why not in property transactions. I think it is also useful if something goes wrong for the buyer, it is an additional source of verification of seller.

            People cry about Central Govt not collecting proper data and publishing it in NHB Residex, now they want to remove a good source of transaction data.

            1% is not a big amount, insignificant I think. People pay brokers the same amount or more in property transactions.

            States have stamp duty as one of their top sources of revenues. State can always increase stamp duty/VAT/adjust GV/etc if they need more money. States still collect the entire loot from property transactions. It has gotten to a point that the heavy transaction charges are killing the entire RE investor market.

            Short term Land investments have become very expensive, so did resale apt investment. More risky POA is being used by some.
            Only remaining option is investing in new apt building either on financing or from prelaunch to end user.

            Income Tax (CG) makes sure that people pay proper cap gains with this TDS.
            Not sure what Modi means, does he mean states collect cap gains. Election stunt - they would not remove this, infact they might even increase the TDS%.

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            • Re : Property Price Trends in Chennai

              If BJP wins TDS will be repealed and it is pathetic decision by govt to impose on seller to be responsible for that. It makes as if though IT has incapacity to do the same.

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              • Re : Property Price Trends in Chennai

                Originally posted by sunr2i View Post
                If BJP wins TDS will be repealed and it is pathetic decision by govt to impose on seller to be responsible for that. It makes as if though IT has incapacity to do the same.
                IT Dept lacking ability to detect such revenue leak is well known.

                Wealth Tax - one is supposed to pay 1% on land holdings exceeding 30L (besides keeping one lot for self use). How many pay? Look at the barren layouts and just if IT Dept has a way to aggregate based on PAN or any other means, a big part of the land buyers won't be in the market today. Pricing will get rational based on standard norms and less on 'parking' attribute thinking of it as a Swiss Account.

                I agree with Septaa that they should apply this to wholesome transaction and not for new building under construction, where it is getting te-di-ous . They should definitely apply this to empty land(unproductive) transactions and it is a good way to curb 'color' money in RE. 50L is way too high and they should keep the threshold at 25L and can net significant transactions in land deals. Buyers with color money are hesitant to do transactions involving TDS, not because of 1% hassle but more because of getting in to the system where they would be tracked and asked for source for the remaining 99%. Good restraint, I would say. Prices will get more rational as a mindless, competing forces will recede in an attempt towards making it a level paying field in bidding war. Legal, tax-paid, hard-earned money will get better mileage and should rightfully so.

                While it may not eradicate black money completely, it is a good start to place a restraint and check on free rein that exist today.
                Last edited April 19 2014, 07:24 AM.

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                • Re : Property Price Trends in Chennai

                  If Modi wins or Rahul Ji wins, real estate will flourish in India. We just need to pick right.

                  Sent from my Nexus 4 using Tapatalk

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                  • Re : Property Price Trends in Chennai

                    Originally posted by SRaj001 View Post
                    Modi and BJP Govt in Central -
                    What does this mean to the RE market
                    Speculation is that market will see a modest uptick due to potential business friendly climate enticing foreign investment coming in.
                    Also speculation / rumor is that RE will opened up for more FDI players.
                    Any truth, or pure speculation ?
                    I was thinking to wait till the election results to start this topic. I am not sure if you all have been reading my rants under off topic section politics threads. I had touched upon many times the possible effects of the next government on corruption and real estate.

                    Coming to chennai real estate, I see an eerie striking similarity and feel a sense of deja vu with year 2009. The wind was towards a NDA led government and many of us here were hoping that the stagnation of prices that extended from one year before the election would lead to significant correction in prices post election..but congress came back with a bang and prices continued to remain inflated making 2009 price look like a bargain today. Old members like Eco, Mav, Wiseman etc will recollect this.

                    This time around, because of formidable allies and better planning by BJP well ahead of the election, they would very well be forming the next government - with or without Modi. Will that affect Chennai Real estate? I would say..not at micro market level but will surely see fluctuations due to the macro economic policies of the central government. Most of the power lies with the state..and whoever becomes the prime minister cannot change anything overnight and without the state government's co-operation. Only If AIADMK allies with BJP, tamilnadu will see the benefits of Modi's vision otherwise we all know JJ's Ego..she will not do anything and dole out more freebies to the public.

                    From several Modi's speech and the vision document its clear that BJP wants to focus on infrastructure and manufacturing sector..This both has huge potential to create jobs and growth in the country..To implement it, the government needs a solid land acquisation policy..I anticipate Real estate industry to see lot of computerization, focus on revenue generation from land registration, re-zoning, possible RE regulator and creation of specific industry zones, creation of roads, river canals etc to be set into motion. It will surely stabilize the real estate market.

                    Because of BJP's focus on domestic development, we can expect rupee to appreciate and hover around 55 for the tenure..this would surely affect Exporters/NRI's and extent of foreign investment into india..but it would augur well for local people. I hope BJP when they come to power abolish unnecessary taxes and focus on creating more savings in people hands, encourage them to spend more and recover through indirect taxes..If they can bring GST and DTC it will be a great achievement..I even liked the idea of abolishing income tax..In my opinion policies should encourage rotation of money within domestic market to create more businesses and jobs. Interest rate can be lowered and any effect on inflation can be countered by focussing and ramping up the supply side. For this to happen we need good governance. If this happens in real estate too where buyers get loans at cheap rate, transparent RE dealings, houses at reasonable price, guaranteed above inflation appreciation in prices, it will be a Perfect symbiotic demand-supply controlled RE market. That will be like a dream come true.
                    Last edited April 19 2014, 11:42 AM.

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                    • Re : Property Price Trends in Chennai

                      //
                      Only If AIADMK allies with BJP, tamilnadu will see the benefits of Modi's vision otherwise we all know JJ's Ego..she will not do anything and dole out more freebies to the public.
                      //

                      Although it is too early to predict post poll developments. But if we election speeches (see below) are indicators of future signs, the signs are omnious and does not give good feeling regarding TN (post the elections).

                      Qte
                      Thu, 17 Apr 2014 14:00:00 GMT | By PTI
                      Jaya makes blistering attack on Gujarat model
                      Jayalalithaa also said that Tamil Nadu was ahead of Gujarat in various sectors including social indicators and industry

                      Reuters
                      Krishnagiri(TN): Taking Narendra Modi head on for the first time, Tamil Nadu Chief Minister J Jayalalithaa today dismissed as a "myth" the Gujarat model of development and said her state was placed far better in various sectors.

                      In a strong rebuttal to the BJP's Prime Ministerial nominee on his charge that her party was not concerned about people's welfare, she said Tamil Nadu was ahead of Gujarat in various sectors including social indicators and industry.

                      "A myth has been created that Gujarat is No.1 in India. But that is not true. The fact of the matter is that Gujarat is keen to market itself, but Tamil Nadu, under my leadership, is focussed not in making empty claims, but more determined to deliver," she told an election rally here, a day after Modi campaigned for NDA in the town in western Tamil Nadu.

                      Stepping up attack on AIADMK and DMK, Modi had accused the two parties of being interested only in settling personal scores rather than working for poeple whenever they came to power.

                      Reeling out statistics to repudiate the Gujarat development model, the main plank of Modi, Jayalalithaa said Below Poverty Rate (BPL) rate was 16.9 per cent in Gujarat while it was only 11.3 per cent in her state which was also better placed in terms of Infant Mortality Rate, at 21 per 1000 as against Gujarat's 38.

                      So was the case with Maternal Mortality Rate, with Gujarat accounting for 122 as against Tamil Nadu's 90, she said.

                      Tamil Nadu was ahead of Gujarat in other indicators like number of graduates in the manufacturing sector, better coverage of PDS even as it was ranked third in terms of Gross State Domestic Product (GSDP), two places ahead of Modi's state.

                      "Tamil Nadu attracted Rs 15,252 crore of foreign investments in 2012-13. During the same period, Gujarat received Rs 2,676 crore. You should ponder over where is Rs 15,252 crore and where is Rs 2676 crore? In software exports, Tamil Nadu is ranked fourth while Gujarat is at 11th place," she said.

                      Number of industries in Tamil Nadu outnumber Gujarat even as the state's foodgrains production touched 101.51 lakh tonnes in 2011-12, even as Gujarat produced only 88.74 lakh tonnes, she said adding her state was way ahead of Gujarat in many sectors, she noted.

                      Jayalalithaa also listed out various welfare schemes of her government including marriage assistance to poor women, free bicycles and laptops to students and the flagship free mixer-grinder-fan scheme.

                      Holding that she had launched the low-cost 'Amma' canteens besides a slew of social security schemes, she asked, "Aren't these schemes designed with the aim of benefiting the poor?"

                      This is the first direct attack on Modi by Jayalalithaa, considered a potential post-poll ally given her cordial ties with him. Both leaders had attended the swearing-in ceremonies of each other as Chief Minister in the past.

                      Incidentally, the AIADMK supremo had refrained from any reference to BJP in her over a month-long campaign till she criticised it last week over the Cauvery issue.

                      Unqte
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