Source : The Hindu Date : 12.06.2009

Slowdown hits property sector in Coimbatore

M. Soundariya Preetha

COIMBATORE: The economic slowdown seems to have hit the real estate sector here with transactions coming down in 2008-09.

In April 2008, sale documents registered in the district were 9,107 and it came down to 4,063 in April this year.

The Registration Department here registered all documents related to property, including sale, mortgage, power of attorney, lease, release, will, settlement and agreement to deposit of title deed.

In April-May last year, the total number of documents registered was 23,216. And, it came down to 16,814 in April-May this year.

The Coimbatore Registration office covered Coimbatore, Singanallur, Madukkarai, Thondamuthur, Avinashi, Vadavalli and Mettupalayam.

The global recession, economic slowdown in the country and the impact on the local industries, reduction in purchasing capacity of the public and prices were some of the reasons that had hit transactions, according to an official.

Though the department had seen the revenue growing more than the target in 2005-06, the growth had slowed down now.

Its revenue in the district was about Rs. 297 crore in 2008-09 as against the target of Rs. 340 crore.

However, the revenue was more than last year’s Rs. 273 crore, the official said. Places such as Annur and Avinashi had continued to see a growth.

D.R. Sekar, chairman of the local chapter of the Builders’ Association of India, told The Hindu that there were signs of the sector looking up.

“Enquiries are slowly picking up,” he said. So far, people adopted a wait and watch approach. With a stable Government and a change in the negative outlook of the economy, the property sector was likely to revive soon.