Chennai Is More Affordable Now As Tamil Nadu Slashed Property Guidance Value By 33%

With the Tamil Nadu Cabinet deciding to reduce guidance value by 33 per cent, buying property in the southern state would become more affordable.

For the uninitiated, guidance value, also known as circle rates, collector rates and ready reckoner rates, is government-fixed minimum rates at which a property could be sold in a particular area.  Based on this value, buyers have to pay stamp duty and registration charges on their real estate transactions.

For those who have been planning to buy property in Chennai, this could be the perfect time to book a flat — the reduction came into effect on June 9.

The decision gains significance in light of the fact that Chennai is among the cities where property prices have gone up, even if marginally, at a time when rates have gone downwards in other cities. A quarterly report by PropTiger DataLabs show that average property prices in Chennai increased three per cent in the fourth quarter of the financial year 2016-17 on an annual basis. At present, a buyer has to spend an average price of Rs 4,400 to purchase a square foot of space in the Tamil Nadu capital.

Property registration charges in the state will, however, be increased from the existing one per cent to four per cent. According to an official release, the raise in the registration fee is to offset the loss of revenue that would accrue due to the cut in guideline values. This means you have to pay Rs 4 lakh in registration charges if you are buying property worth a crore.

Ready to invest in Chennai but want to invest in only the best areas? We list four localities that are popular choices among buyers for a slew of reasons.

Thiyagaraya Nagar

This locality is rated a 10 on Makaan.com's Livability Index for obvious reasons. This is one of the oldest localities in the city that boasts of everything best-in-class. Considering that, prices are also on the higher side when we compare them with the average property price in Chennai. You have to pay as much as Rs 17,000 for a sqft of space at T Nagar. In case you plan to rent, your average monthly rental outgo could go up to Rs 42,000.

Purasaiwakkam

Out of 10, this locality score 9.8 at Makaan.com's Livability Index. When compared to T Nagar, owing property at Purasaiwakkam, a fast-developing central suburb in Chennai, is more affordable. Average property price in the locality stands at Rs 13,00 per sqft. You have to shell out anywhere between Rs 82 lakh to Rs 1.10 crore to buy a 2BHK unit at Purasaiwakkam.

Alwarpet

This upscale locality is also among the oldest areas in Chennai, and is counted among the best, too. Thanks to the well-developed civic and social infrastructure, the locality has a score of 9.7 at Makaan.com's Livability Index. Considering all that, you have to pay four times the money to buy a property here when compared to average prices in Chennai. According to Makaan.com data, average property rates in this locality stands at Rs 18,500 per sqft. In case you want to rent a property here, you may have to pay a monthly rent of as much as Rs 68,400.

Choolaimedu

Choolaimedu, a popular locality lying in Chennai's west, also has a score of 9.7 at Makaan.com's Livability Index. However, when compared to all the localities mentioned above, owing property here is much affordable. If you have a budget of Rs 30 lakh only, you can book a 1BHK flat in Choolaimedu. Average property rates in the locality stand at Rs 8,200 per sqft while monthly rents may go up to Rs 16,200.