Are TN Homes Becoming Affordable? - Size Up from 40 Sqm to 60 Sqm in City - Newry Properties

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Are TN Homes Becoming Affordable? – Size Up from 40 Sqm to 60 Sqm in City

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Buying affordable houses in Chennai has been a dream for many, and now might just be the right time for homebuyers to purchase a property. In order to bring forth more homes under affordable housing scheme, the Government of Tamil Nadu has increased the size of the houses that qualify from 40 sqm to 60 sqm within the limits of Greater Chennai Corporation, stretching to even flats in Thirumullaivoyal. For the dwelling units that fall under this scheme, the GST to be paid is just 1% as opposed to other projects with GST at 5%.

The Tamil Nadu Combined Development and Building Rules have been amended, notified by Municipal Administration and Water Supplies Department. Until the amendment came into action, the set limit was 60 sqm, however, now the relief has been extended to units that do not exceed 90 sqm. In addition to that, falling in line with the Government-set limit of housing units, the cap on the registration value has been set at a maximum of Rs. 45 lakhs. The chairman of Confederation of Real Estate Developers’Association of India addressed that this rule will benefit to a greater extent for homebuyers. Through this scheme, they will be eligible for the Credit Linked Subsidy Scheme (CLSS), which falls under PMAY scheme.

He further went on to explain the scheme, “Housing projects on the outskirts of Chennai stand to gain as those buying houses not exceeding 968sqft in size at a maximum price of ₹45 lakh would be eligible for a subsidy of ₹2.67 lakh through the CLSS,” he said.

The Scenario of Chennai Metropolitan Area: Stalling of Several Projects in the City

With the share of affordable housing in Chennai Metropolitan Area (CMA) being 30%, it is inclusive of flats in Ambattur, apartments near Mugalivakkam, extending to the suburbs of Chengalpet, Kancheepuram and Thiruvallur districts. The Tamil Nadu Combined Development and Building Rules was launched in 2019 with its main motive to bring the entirety of the state’s development under a single bracket. This rule, albeit the many pros had certain cons as well, which unfortunately, have stalled the commercial projects in the metropolis.

The removal of Mixed Residential Zone classification from CMA did not benefit the commercial developments in the said zones. Having said that, this amendment came as a blessing in disguise; the state has permitted commercial constructions on plots abutting 12 meter wide roads in comparison with the earlier limit of road width being 18 meters.

Mr. Sridharan concluded by saying that these roads will function as commercial use zones and that the developers are not required to reclassify their land. In addition to that, this amendment is bound to reduce the construction delays by 8 months and at least 40 office projects that weren’t able to find footing earlier are certainly expected to benefit from the change.

In a similar fashion, the government called it quits for mandatory two-way driveway for residential projects less than 10,000 sqm in size and the parking spots restricted to 20 in number. The chairman of Builders Association of India, Southern Centre opined that this move was a huge relief for the industry as two driveways had an impact on design, further shrinking the size of the apartment complex.

 

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