The real estate market is all set for a churn as the registration department is in the process of revising guideline values for properties across the city.
Going by the proposed revision, Radhakrishnan Salai is the costliest area in Chennai, followed by Anna Salai. Guideline value is the government prescribed minimum valuation for registration of properties.
Surprisingly, these arterial roads have overtaken even the premium Boat Club area and Usman Road, the retail hub of the city.
"In principle, this revision is a welcome move as it reflects the market reality and hence could help put a check on the black money economy that rules the realty sector," said P Suresh, managing director, Arun Excello.
As against an existing guideline value of Rs 19,675 per sq ft of land or Rs 4.72 crore per ground, (one ground is 2,400 sq ft) the registration department has proposed a new guideline value of Rs 27,000 per sq ft (Rs 6.52 crore per ground) for Radhakrishnan Salai.
With a view to seeking public response, the department will display the proposed hike at all district collectorates and taluk offices from October 14.
"A final call on the guideline value revision will be taken only after getting the public response," said a senior official.
A realtor noted, "It defies logic that Usman Road could be cheaper than Radhakrishnan Salai. Obviously, the officials have failed to gauge the amount of black money that is pumped into realty deals in T Nagar. As early as two years ago, the prices on Usman Road had crossed Rs 10 crore per ground (Rs 41,666 per sq ft)."
Though such exceptions cannot be examples for the registration department to increase the guideline value manifold, T Nagar deserves to be treated differently, noted a builder.
With everyday business transactions running into crores of rupees for dozens of shops, there is very high demand for land in T Nagar.
There are also cases of the proposed guideline values far exceeding the market realities, noted T Chitty Babu, managing director of Akshaya Homes.
For instance, in Tiruporur, where land is available for Rs 3-4 crore per acre, the proposed guideline value is Rs 13 crore per acre.
Similarly, in Guduvanchery, where the market value is less than Rs 6 crore per acre, the proposed guideline value is Rs 17 crore per acre.
Reacting to this, an official said, "We have noticed these problems. They will be rectified."