After a slump in the real estate industry due to issues like the increasing cost of construction materials and delay in notifying Tamil Nadu Combined Development Regulations and Building Rules, the industry is witnessing a revival in Chennai Metropolitan Area.
“In 2018, we had received 555 applications for special buildings and 60 applications for multi-storied buildings. In 2017, the planning authority received only 376 applications for special buildings and 67 applications for multi-storied buildings,” a CMDA official said.
CMDA had issued planning approval for 365 special buildings in 2017. During 2018 and 2019, planning approvals for 274 and 486 special buildings were issued respectively. Similarly, 175 planning approvals for multi-storied buildings were given between 2017 and 2019.
It may be noted that the industry was hit by sand shortage and the subsequent increase in the cost of construction materials during the second half of 2017 and the first half of 2018. Despite the cost subsided, several builders restrained from launching new projects and waited for the notification of Tamil Nadu Combined Development Regulations and Building Rules.
Meanwhile, civic body had issued completion certificates for 1,055 buildings in the last three years. In 2018 alone, the authority had issued 406 completion certificates. In 2017 and 2019, as many as 323 and 326 completion certificates were issued respectively.
As the real estate in the city is picking up slowly, realtors expressed optimism that the construction industry would witness positive changes in 2020.
“During the previous years, several builders, especially small builders, postponed their projects. Launches of new project were also low. Situations are changing and the more projects are expected to be launched this year in the city as well as in the entire state,” S Ram Prabhu, vice chairman of Builders’ Association of India (Southern Centre), said.
Ram Prabhu added that builders were waiting for the implementation of revised FSI norms and postponed projects.
Pointing out delay in delegating powers to local bodies, he said, “Revised FSI norms was implemented in buildings falls under the CMDA on February 4, 2019. But the same was implemented for smaller buildings on November 4, 2019, due to the delay in power delegation to local bodies. This was also a reason for the slump.”