Subsidy under PMAY and 1% GST will help more people get houses
Amendments made to the Tamil Nadu Combined Development and Building Rules last week are expected to boost affordable housing in the city.
P.S.J. Palanirajan, president, Greater Chennai Corporation Licensed Surveyors’ Association (GCCLSA), said 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.
Creating awareness
“The number of files processed by the Chennai Corporation is expected to increase. More residents in the affordable housing segment are expected to benefit,” he said.
“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. They can get stilt plus three floors instead of stilt plus two floors. Residents should be careful, as completion certificate is mandatory,” said Mr. Palanirajan.
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 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.
“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. The new rules will benefit such residents.
Currently, the registered value of an affordable house has an upper limit of ₹45 lakh.
“The new rules will also be a major advantage for 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,” he said.
“They also will be eligible for the PMAY scheme and 1% GST, against the 5% levied on other housing purchases,” he added.
(Source: The Hindu)
