Tamil Nadu to Ease Building Approvals and Revamp 12,648 Old Flats
Chennai, August 29, 2026: Tamil Nadu is set to make property approvals faster and provide relief to thousands of housing beneficiaries with a series of new reforms announced by Housing and Urban Development Minister B Rajkumar.
The proposed measures include digital land-use approvals, wider self-certification, higher building approval limits, reconstruction of unsafe flats and interest relief for housing borrowers.
Building Approvals to Become Easier
The Directorate of Town and Country Planning will digitise the entire land-use change application process.
Self-certification will be expanded to cover residential buildings of up to 5,000 sq ft and small commercial buildings up to 1,500 sq ft.
Third-party certification will also be introduced for larger residential, commercial and industrial buildings in approved industrial layouts.
Local Bodies to Get Higher Approval Limits
Approval powers for residential projects will be increased to:
- 16,140 sq ft for corporations and municipalities
- 12,912 sq ft for town and village panchayats
- 5,380 sq ft for commercial buildings across local bodies
The government also plans to simplify the reclassification of wet agricultural land in non-planned areas through multi-departmental clearances.
12,648 Dilapidated Flats to Be Rebuilt
The Tamil Nadu Urban Habitat Development Board will undertake reconstruction of 12,648 dilapidated flats across 20 project areas at a cost of ₹2,882.62 crore.
The first phase will involve demolition of 9,918 unsafe units, followed by reconstruction.
41,664 Old Flats to Get Renovation
Apart from reconstruction, the government has allocated ₹96.63 crore to renovate 41,664 older flats.
Another ₹355 crore will be spent on improving civic infrastructure across 208 housing sites.
A new Smart Habitat Management Platform will also be launched at a cost of ₹75 lakh.
Housing Borrowers to Get Interest Relief
Borrowers from primary cooperative housing societies who have defaulted on repayments will be eligible for a broad interest-waiver scheme.
Low Income Group and Middle Income Group borrowers will also receive an additional one percentage point interest waiver.
Why This Matters for Property Owners
The reforms could reduce paperwork and waiting time for building approvals while giving local authorities greater powers to clear eligible projects. For residents of ageing government housing, the proposed reconstruction and renovation programme could also mean safer and improved homes.
Grihik Takeaway: Tamil Nadu’s latest housing measures target both sides of the property ecosystem — faster approvals for new construction and major redevelopment of ageing housing stock. The biggest impact could be felt by homeowners, housing allottees and borrowers seeking financial relief.