COIMBATORE: The real estate sector growth has dipped in Coimbatore, due to the higher guideline value of properties and ‘income tax department’s notices issuing’ problem. Two years before realtors have promoted layouts only. But now most of the promoters are selling newly constructed homes, which are priced between Rs 23 lakh to Rs 60 lakh. However, in the last six months, the sale of houses and lands had severely come down in the city.
“After Chennai was affected by floods, many realtors shifted their concentration to the textile city which gave a boom to the real estate field. But this improvement has been short-lived. Now, sale of new layouts and houses has dipped as usual,” said Vinayagamoorthy, a realtor of Sulur area. “The main reason for the real estate growth slowdown is higher guideline value than the market price at Pappampatti, Sulur, Irugur in Coimbatore, which was fixed by the state government on April 1, 2012. Meanwhile, the state government revised the guideline value last year, which has increased by nearly 20 per cent of existing value. Now one-acre land at Boogampatti village near Sulur in Coimbatore costs Rs 8 lakh. But the guideline value of the land is Rs 11 lakh. Many landowners refused to sell their land below the guideline value. So the real estate transaction has come to stand still in the Sulur area, which affects the real estate growth in the city,” he added.
“One bedroom house or a flat was costing around Rs 23 lakh in the city. If anyone buys a house which costs above the '20 lakh in the city, he will receive notice from the income tax department asking source of revenue,” said J. Krishnan, another realtor who is promoting houses in Pappampatti area. “The income tax officials have been collecting information regarding Rs 20 lakh and above transactions from 18 registration offices in Coimbatore zone. After analysis of the information, which is collected from registration department, income tax department officials will issue the show cause to the people after six months, who did the transaction above Rs.20 lakh in real estate dealing. To avoid such official purview, many investors avoid buying houses and flats in the city which also leads to dip in sales of properties.” he added.
