Tamil Nadu launches instant online approval for building permits

The Tamil Nadu government on Monday introduced a new scheme that provides direct online approval for building permissions for houses built on plots up to 2,500 square feet, with a maximum building area of ​​3,500 square feet. Applications can be submitted online.

The real estate sector welcomed the state government’s initiative, noting that it would help the middle class and boost house construction. However, its success will depend on effective implementation.

According to the government, costs for inspection, infrastructure and facilities are completely waived and no completion certificate is required after construction.

A government press release shows that currently 72 percent of applications for building permits come from village councils, 77 from city councils and 79 from municipalities and companies.

These are processed by the relevant local authorities through the Single Window System, the release said.

According to Anuj Puri, Chairman, ANAROCK Group, the latest announcement by the Tamil Nadu government on instant online approvals for construction permissions is a unique move. This move will pave the way for faster approvals for real estate properties, thereby avoiding project delays and malpractices.

Getting the necessary government approvals has always been one of the many challenges for builders and a major cause of project delays. By removing this major hurdle, the Tamil Nadu government is making it easier and more conducive for developers to operate. Moreover, project delays often lead to price hikes which are ultimately passed on to homebuyers. This move will thus help prevent such price hikes caused by delays and benefit homebuyers, he said business line.

New Launches

According to ANAROCK Research, the number of new launches in Chennai in Q2 2024 declined by 29 percent compared to Q1 2024. On a year-on-year basis, the number increased by just 3 percent.

“With easier approvals, we can see developers launching more new projects, thereby helping to increase new supply in the market. Currently, Chennai saw a total of 10,530 units launched in H1 2024 – the second lowest among the top 7 cities after Kolkata,” he said.