KOCHI: Residential real estate segment in Thrikkakara and Edapally areas are experiencing significant growth if one goes by the data from the registration department in Ernakulam. In the past four months, these regions accounted for more than 50 % of flat registrations in the district.
Registrations of new flats are taking place in the city and Tripunithura as well, but their numbers are fewer compared to Thrikkakara and Edapally areas.
Overall, property registrations in the district, both of flats and lands, in the district have come down this year when compared to last year.
“Very few registrations took place for two years in 2020 and 2021 due to the pandemic. This led to a high number of registrations in 2022, and our revenues exceeded the target set by the government. However, this year, till now, we have been able to collect only 24% against a revenue target of 33% due to a decline in registrations,” said an official with the registration department.
The registration department in the district collected Rs 1,312.22 crore against the target of Rs 1,037.61 crore in the last fiscal, but this year, the department has so far collected only Rs 330.70 crore in the last four months, against a yearly target of Rs 1,363 crore.
Department officials said this could be because of the changing trends in the real estate market. Internal assessments show that though several flats have been announced within city limits, transactions are comparatively fewer. It has also been found that properties are being frequently resold within a short span of purchase–often within a few months. “Of the total flat registrations this year, 90% are of resold flats,” the official said.
According to industry insiders and revenue department officials, one possible reason for this might be the high cost of new flats that are coming up in the district.
A two-bedroom flat costs anything between Rs 60-Rs 80 lakh, and a three-bedroom flat costs above Rs 1 crore at launch, and the cost increases further by the time they are ready for occupancy. “In contrast, a flat for resale in a prime location is much cheaper and more affordable.,” the official said.
Stakeholders in the field, however, don’t agree with this view. “Resale is a secondary market and a constant. Registration of new flats is primary, and in less than three months of a project being completed, the registration happens. The completion of projects depends on when they have started and how they have progressed. The units of ongoing projects are not registered. With the Kerala Real Estate Regulatory Authority in place, the builders are now trying to get the projects completed within a fixed time frame,” said Najeeb Zackeria, former chairman of The Confederation of Real Estate Developers Associations of India (Kerala chapter).
Published On Aug 20, 2023 at 04:00 PM IST
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