The Tamil Nadu government on Monday introduced a new scheme offering instant online approval for building permits for houses built on plots up to 2,500 sq ft, with a maximum construction area of 3,500 sq ft. Applications can be submitted online.
The real estate industry welcomed the State government’s initiative noting that it would help the middle class and promote increased house construction. However, its success will depend on effective implementation.
Under the scheme, scrutiny, infrastructure and amenities fees are fully waived and a completion certificate is not required after construction, the government said.
A government release says that currently 72 per cent of building permission applications come from the village panchayats; 77 from town panchayats and 79 from municipalities and corporations.
These are processed by the concerned Local Bodies through Single Window System, the release added.
Anuj Puri, Chairman of ANAROCK Group said the Tamil Nadu government’s latest announcement of instant online approvals for building permits is a one-of-its-kind move and will pave the way for faster real estate approvals, thereby eliminating project delays and any malpractices.
Getting the necessary government approvals has always been one of the many challenges for builders and a major cause for project delays. By removing this major obstacle, the Tamil Nadu government is making it more convenient and conducive for the developers to operate. Moreover, project delays often lead to price escalations which are ultimately passed on to the homebuyers. Thus, this move will help prevent such price appreciation caused by delays and benefit the homebuyers, he told businessline.
New launches
The new launches in Chennai dropped by 29 per cent in Q2 2024 compared with Q1 2024 and saw a mere 3 per cent increase y-o-y, as per ANAROCK Research.
“With easier approvals we may see developers launching more new projects, thereby assisting in increasing new supply into the market. Currently, Chennai saw total of 10,530 units launched in H1 2024 – the second lowest among the top 7 cities after Kolkata,” he said.