CHENNAI: Highlighting the government's decision to increase the flat registration charges will impact the housing business as well as the government's goal of providing housing to all, the Confederation of Real Estate Developers' Associations of India (CREDAI) Chennai has urged to roll back the hike.

In a statement, CREDAI - Chennai president S Sivagurunathan expressed concern over the recent decision by the government for the flat registration costs of 9 per cent on the total cost of the apartment. "CREDAI Chennai urges the government to roll back the flat registration cost hike as this sudden hike will have adverse consequences on the potential homebuyers and government revenues from apartment registrations, " the statement said.

The statement added that the decision to increase the flat registration fee with immediate effect will impact the government and homebuyers more than developers. The hike will affect property purchasers who have already purchased the flat but have not yet registered, the number of registrations and registration revenue will decline as a result of the latest raise.

"Booking cancellations can happen as a result of this. In general, it will have a detrimental effect on the housing business and will also impair the government's goal of providing a home for everyone by the year 2030," he added.

Pointing out that the increased flat registration costs will directly impact the affordability of homes for potential buyers, he said that such a hike will create additional financial burdens, making it more difficult for buyers in realising their dream of owning a house.

It may be noted that the secretary of registration department has directed the Inspector General of Registration to issue instructions to registering officers not to insist on addition of building with undivided shares in respect of first sale of flat with land in a real estate project for the sole reason that 'completion certificate' was issued in respect of building. Hitherto, separate registration charge of 9 per cent was charged for sale deed, and 4 per cent for construction agreement.