Post HC verdict, “DTCP approved” attracts land buyers in Coimbatore

COIMBATORE: ‘DTCP approved’ seems to be the new catchphrase in all the real estate advertisements. Two months after a high court ruling ordering that only plots approved by the Directorate of Town and Country Planning (DTCP) can be registered, the demand for such approved plots has gone up in the city. “In a place like Coimbatore, hardly 5% to 10% of the plots are DTCP approved. So, many investors want to buy them either before their prices go up or before they have to contedt with unapproved plots,” said the vice-president of Hanu Reddy Realtors, Coimbatore, R Hariprakash.

“This situation has led to an increase in demand for DTCP approved plots,” said V P Dhanapal of Dhana Real Estate. However, registration officials say that there was no marked increase in registration of land in the recent past. Realtors agree that registrations have not happened, because most of the buyers were waiting for the final verdict in the case, which was pronounced a week back, and hope registrations will pick up in the coming days.

“While we were registering around 10 DTCP approved plots every three months before September, now we hope that the number would go up to 30,” he said. K Muthukumar, a document writer, said, “In most of these transactions, an advance is paid and the plot is booked. Actual registrations will probably be seen in November and December.”

Realtors say the court ruling has brought about a lot of awareness among potential investors and buyers. “While before the ruling, enquiries would just be about availability of land in a particular place within their budget, after the ruling at least six out of 10 people specifically ask and confirm if we have DTCP approved land available in the area within their budget,” said Hariprakash.

“This is despite DTCP approved plots within every area being at least 40% to 100% more than just a panchayat approved plot in the vicinity and neighbourhood,” said S S Shankar of city-based Surabi Home Promoters.

A few realtors also noticed prices of DTCP approved sites going up by around 15% after the ruling. “Prime areas where creation and sale of plots have been taking place are Kalapatti belt, Vadavalli and Thudiyalur. DTCP approved layouts between the airport and Nehru Nagar would be around Rs 15 lakh per cent, and it would be around Rs 4.5 lakh to Rs 11 lakh in Vadavalli,” said Hariprakash.

“Any unapproved land in the same vicinities would be close to half the price. While the educated middle-class, especially those buying in Saravanampatti don’t mind paying the high price, other middle-class buyers are waiting for the court to change its ruling,” said Shankar. However, the overall real estate market in the district is still in a lull, said property developers and promoters.

“Despite DTCP approved plots being in a small number, they are not flying off the shelf and getting registered,” said S Senthil Kumar, state coordinator, Federation of All India Federation of Realtors and Agents Association.

“In fact, no properties are moving, be it approved or unapproved. If we used to get around five documents registered in a week, it has become less than five registrations in a month,” he said. “Simply because DTCP approved land is in extremely short supply and land owners who have raised prices after the ruling are not finding takers. Funnily, panchayat approved land owners too are raising prices instead of bringing it down,” he added.

Credits ET Realty

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