Tamil Nadu Adopts Three-Tier Guideline Values for Chennai Apartment Complexes

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    In a recent decision, the Tamil Nadu Government has instituted a revamped guideline value system specifically for apartment complexes across Chennai and its environs. This updated system now organizes guidance values based on project types instead of differing according to specific areas.

    Guideline Values by Project Type

    • Mylapore: Rs 16,000 (Basic), Rs 18,000 (Premium), Rs 22,000 (Ultra-Premium)
    • Koyambedu: Rs 14,000, Rs 18,000, Rs 21,000
    • Tambaram: Rs 5,500, Rs 6,000, Rs 6,500

    Expert Insights: Sanjay Chugh, Chennai City Head at Anarock Group, expresses concerns about the potential repercussions on the city’s housing market. He underscores that the significant escalation in guideline values might impede residential market growth, considering that these values exceed prevailing market rates, which could deter potential buyers.

    However, Manju Yagnik, Vice Chairperson of a real estate group, views this change favorably, citing the necessity of clear guidelines to establish trust and stability within the real estate sector.

    Understanding Guideline Values: Guideline values establish the minimum property registration value, set by state authorities and typically lower than market rates. These values factor in local infrastructure, demand-supply dynamics, and economic conditions. Governments periodically revise these values, often in consultation with real estate experts and stakeholders.

    Focus on Apartment Complexes: It’s important to note that this revision specifically pertains to housing societies and doesn’t extend to individual homes or plots.

    Real Estate Trends in Chennai: Anarock Research data illustrates Chennai’s sluggish housing sales in 2023, recording the lowest among the top seven cities. The southern suburbs, especially OMR and GST Road, remained instrumental in driving housing demand, accounting for over 70% of total sales. The proximity to IT/ITES companies and diverse housing options across budgets augmented their attractiveness.

    Market Segments and Sales Trends: Mid and premium segment homes priced between Rs 40 lakh and Rs 1.5 Cr dominated sales, constituting over 64% of total transactions. Conversely, demand for budget homes under Rs 40 lakh saw a 37% decline compared to the previous year. Luxury homes above Rs 1.5 crores represented approximately 21% of sales.

    Chennai’s real estate landscape showcases differing buyer preferences across various budget segments, with mid-range properties maintaining prominence amidst fluctuations in lower and luxury segments.

    (Source: Timesproperty)

    Also read: Noida-Greater Noida West Metro Route Set for Change after PMO Recommendation

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