Although other parts of the State of Tamil Nadu have shown an upward trend in the number of property ransactions, the city and its surroundings have seen a reduction in property transactions. A reduction of 10 per cent has been seen in certain parts of the
city.
In the last few months
the number of property transactions has reduced. The annual growth of 20 per
cent that was accomplished in the last few years
will not be attained during the year 2008 according to government sources.
The annual rate of increase in
the number of property transactions in the vicinity of Chennai because of the boom in IT following 2003 has gone down considerably. A steady 20 per cent annual growth was there in the past in spite of monthly ups and downs in the city. The present downward inclination has been there for some months now.
In Chennai too the challenges faced by the real estate market in
other big cities like Mumbai, Delhi
and Bangalore are present which explains the low yield in registration. Sources said that the great
development seen in many property transactions in the last two years was over now.
The dip in the number of transactions
has also been ascribed to the
impact of the global financial markets and stock market crunch on the mind-set of the
property buyers in Chennai.
The establishment of a regulator for the
construction industry is being planned by the Union Government. Besides paving the way for a single-window clearance for the industry which has until now been mired in innumerable laws and licenses, it would also make it obligatory for State governments to impose worker welfare cess on the industry.
Companies doing construction presently need registration under five laws, besides obtaining licenses under many legislations and are subjected to inspection under 12 laws. All these laws would be brought under one umbrella by the new law.
The model regulation would suggest a quick compensatory mechanism for the
construction industry that confronts disputes. The proposal is being taken up with concerned
ministries by the Department of Industrial Policy and Promotion (DIPP) to frame the policy. Irregularities in the present legal system would be
eliminated with the help of the suggested regulator that are there because of many authorities and complexity of procedures.
The best points from national as well as the states may be brought together by a model construction law. The growth of physical infrastructure in the country is closely linked with the
construction sector.
The setting up of state concretion authorities for resolve disputes would be permitted by the new model law which would resource cost and time required for long arbitration processes.
Besides setting up standards for safety the new policy would emphasize vocational training and up gradation of skill of ptiiar safety standards for workers to extend social benefits. .I would make the levy of a worker welfareacess on the construction industry mandatory in every state. It would be between 1-2% of the construction cost.
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