Against the increased registration fee home sales surge in Kerala

Government has already hiked the registration fee and cultivated new registration rule for properties which came into action since July 2016. Reportedly, these two major reforms couldn’t affect the realty sale in Kerala, the sales of apartments in particular. Against all odds, there was an ascending trend in sale in this state observed after revived realty law enforcement. Buying home with RERA assurance appeared to be secured choice of investment to the potential buyers.

After RERA and GST implementation market inclination has become heavier to the ready-to-move apartments, despite their relatively high prices. Buyers are increasingly showing their interest in on-hand projects that have valid occupancy certificates. The real estate industry is witnessing significant change in all real estate practices post RERA. The act strictly prohibits builders to advertise their under-construction projects. While OC ready projects are attracting healthy volume of buyers.

Affordable housing sector is another provision where limited investment can return, some serious steady proceeds.  Rather than spending a hefty volume in luxury apartments, people these days seems to be really interested in affordable flats in Kolkata and other major cities across the country. Kolkata has been mentioned separately, for the city still has some best alternatives in the category of budget flats within spending plan.


According to the updated data of the registration department of Kerala, the total number of apartments registered in 2015-16 was 7,438 in Kerala. This figure increased to 8,039 in 2016-17. The registration department pinned on the increased resilience in real estate has come along with the entry of new set of real estate builders over the past one year in the real estate economy.

However, this growth not up to the expectation of the industry players. According to the market professionals due to the money ban hit property sale had been significantly downwards since the last couple of quarters of the prior fiscal. Had the demonetization move not stir the market the registration volume would have been much higher in comparison to this numbers. The real estate market in Ernakulam has witnessed a marginal increase in terms of property absorption for 2016-17, while the increase in Thiruvananthapuram and Kozikode is remarkably high.

While the registration volume in Kerala has touched the apogee in 2013-14 and 2014-15, the stamp duty and the registration fee were 6% and 2 % correspondingly. The total value of apartments ­ as confirmed in the registration documents in 2016-17 ­ was Rs 2,622.08 crore. The revenue drawn by the government in terms of stamp duty in the course of registration of apartments in 2016-17 ­ was Rs 166.5 crore, while it was Rs 52.2 crore through registration fees.
The existing statistics of the department show is somewhat will confer buoyancy to builders who have been facing a further crisis with GST implementation. The drooping period is only provisional and the industry is anticipating that it will get back to its old rhythm within sometime.

-LNN (Liyans News Network)

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