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In Kerala, the areas of Thrikkakara and Edapally have become hubs of activity in the real estate sector. Over the past four months, these regions have contributed to more than 50% of flat registrations in the district of Ernakulam. Although new flat registrations are also happening in the city and Tripunithura, their numbers are smaller compared to Thrikkakara and Edapally.
However, overall property registrations, including both flats and lands in the district, have decreased this year when compared to the previous year. The impact of the pandemic is evident, as registrations were limited in 2020 and 2021, resulting in a surge in registrations in 2022, exceeding government targets. This year, the registration department has only collected 24% of the target revenue, falling short due to reduced registrations.
Officials from the department suggest that this change might be linked to evolving trends in the real estate market. Internal assessments reveal that while there are numerous flat announcements within city limits, actual transactions are relatively lower. Interestingly, properties are frequently being resold shortly after purchase, sometimes within a few months. In fact, 90% of flat registrations this year are for resold flats.
Experts and officials from the revenue department speculate that this trend could be influenced by the high cost of new flats in the district. The launch price of a two-bedroom flat ranges between Rs 60 lakh and Rs 80 lakh, while a three-bedroom flat costs over Rs 1 crore. These costs often increase by the time the flats are ready for occupancy. Conversely, resold flats in prime locations are more affordable.
However, stakeholders in the field hold a different perspective. They view resale as a constant in the secondary market. New flat registrations are considered primary, and they typically occur within three months of a project's completion. The timing of project commencements and progress significantly impacts their completion. The units of ongoing projects are not usually registered. With the implementation of the Kerala Real Estate Regulatory Authority, builders are striving to complete projects within specified timeframes.
In summary, Thrikkakara and Edapally regions in Kerala are seeing substantial growth in the real estate sector, contributing to over 50% of flat registrations in the past four months. Despite this local growth, overall property registrations have decreased this year, potentially due to changing market trends and high costs of new flats. While reselling properties is prevalent, experts underline that the primary focus remains on new flat registrations, influenced by project completion timelines. With the introduction of regulatory measures, builders are striving to meet fixed project completion deadlines.
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