The real estate industry will now go through some changes with the amendments made to the Tamil
Nadu Combined Development and Building Rules last week and are expected to boost affordable housing in the city. Numerous flats in Thirumullaivoyal and other areas will now be available for buyers at much reasonable prices.
According to P.S.J. Palanirajan, president, Greater Chennai Corporation Licensed Surveyors’ Association (GCCLSA), the area for affordable housing units had been increased from 40 sq m to 60 sq m of carpet area in the Chennai city limits, and to 90 sq m in the rest of the State.
Mr. Palanirajan also said that registered engineers have started creating awareness among residents to make use of the amendments to TNCBDR with 2 FSI (Floor Space Index), they should not deviate from the approved plan and that they can get stilt plus three floors instead of stilt plus two floors. Nevertheless, residents should be careful, as a completion certificate is mandatory. Residents looking for apartments in Manapakkam can do so now with ease.
Urban planner and disaster management expert N. Mathavan said that the number of building
violations had already reduced in the past one year because of the new rules. “The new amendments have provided a boost to affordable housing in Chennai. Now, a reasonably-sized double-bedroom house can be categorised as affordable, with GST benefits for the buyers. GST is not 5%, but 1% for houses less than 60 sq m of carpet area in Chennai,” he said.
CREDAI Tamil Nadu Chapter’s chairman S. Sridharan said city residents buying affordable housing units of less than 60 sq m would also be able to reap the benefits of premium FSI for the structures.
With apartments for sale in Ambattur and other residential areas, there will be a boost in sales after the amendments made in the rules. “More builders will start opting for the affordable housing segment. It will create demand for affordable housing in the industry,” he said.
Increase in projects
“People are price-conscious now. We expect a drastic increase in the launch of affordable housing projects in the coming months, which is a positive factor for the housing industry. The amendment has also clarified on the definition of built-up area by clearly stating it as ‘carpet area’, avoiding any confusion. The number of affordable housing units is over 30% of the total supply in Chennai. We expect almost a 100% increase in affordable housing units because of the amendment,” he said.
“The developer also gets an advantage as premium FSI availed is free for affordable housing. The main advantage is the subsidy under the PMAY scheme and the 1% GST. Increase in the number of launches will give a better choice for residents who do not own a house in the city,” said Mr. Sridharan.
According to data compiled by the Housing and Urban Development Department, over 49% Chennai residents do not own a house and live in rental accommodation. These rules will benefit such residents. Currently, the registered value of an affordable house has an upper limit of ₹45 lakh. The new rules are also expected to be of major advantage to buyers who want to purchase houses on the outskirts of Chennai and other parts of the State, up to 90 sq m (968 sq ft of carpet area), within the prescribed limit of ₹45 lakh.
“They also will be eligible for the PMAY scheme and 1% GST, against the 5% levied on other housing purchases,” he added.