Ministers Pledge Support and Announce Key Initiatives Committing to Boost Real Estate Industry in TN

Chennai, 29th January 2024: “Of the 43 requests consolidated, we are pleased to say 25 of them are in progress. We also assure the industry your needs are looked into and we will offer the maximum support. We are also looking into the Building Height approvals and FSI etc. and an announcement should be made at the earliest opportunity, said, Thiru. S. Muthusamy, Honorable Minister for Housing & Urban Development, at the inaugural session of South India’s largest Real Estate Conclave – STATECON, organized by CREDAI Tamil Nadu. The theme of the two-day conference was Conservatism to Cosmopolitanism.

Lastly, commenting on the demand for self-certification to ease the approval process, the Minister put it back asking what about deviations. Would the industry take responsibility for the deviations? If the responses are favorable, it can be considered,” he concluded.

Thiru. P.K. Sekar Babu, Honourable Minister for Hindu Religious and Charitable Endowments and CMDA in his speech said, “The request for Single window clearance is on the cards. Between 2021-2023, 605 approvals were granted for NHRB when compared to 426 earlier. Also, layout approvals have grown from 197 to 305 and reclassification has increased by 300% based on plan approvals,”.

“Overall, we witness major progress throughout the State but, we can do a lot more if we work together. The commitment of 60 days to process and approve will be truly possible only when we get all the papers and documents that are asked for from your side on time. So, to make things work, we need to work closely,” he added.

A report by Frank Knight and CREDAI Tamil Nadu was released at the conference with the State Ministers receiving the copies along with other members of CREDAI.

The report states, “In FY 23, Tamil Nadu, the second-largest economy in India, demonstrated a dynamic economic structure with the tertiary sector leading at 53%, followed by the secondary sector at 34%, and the primary sector at 13%. The state’s economy, valued at USD 294 billion, showcased an impressive average annual growth of 11% from FY 9 to 2019. Foreign direct investments and private equity inflows reached USD 81 billion post the global investors’ meet, affirming the state’s appeal. Tamil Nadu’s stock market engaged 4.7 million investors with USD 28 billion assets under management, predominantly in equity (59%),”.

“Notably, the construction sector, currently valued at USD 32 billion in FY 23, is projected to reach USD 208 billion by FY 47, reflecting a significant opportunity for real estate stakeholders. Furthermore, the manufacturing sector, constituting 19% of the state’s economy, is expected to expand to USD 374 billion by FY 48, necessitating 2.25 lakh hectares of industrial land. To support this growth, enhancing capital expenditure to 5.7% of the GSDP is crucial. The state must undertake a cumulative capex exceeding USD 110 billion over the next 24 years to ensure robust infrastructure for sustained development. Key advisory measures include targeted retail policies, leveraging textile strengths, and strategic promotion of tourism. The report provides comprehensive insights for stakeholders to engage in further discussions and capitalize on the potential outlined,”.

Mr. R. Ilankovan, President, CREDAI TAMILNADU, in his speech appealed to the Hon’ble Ministers at the conference to regulate, reduce, and limit the number of approvals so that the industry can grow quicker and achieve the targeted numbers, particularly DTCP approvals. Also, DTCP should give a revised master plan as the current ones are all outdated,”.

He further suggested that all approvals and payments could be made to DTCP instead of the industry dealing with multiple local authorities, this would lead to time efficiency as the delays in approvals result in a higher cost for the buyer eventually.

“The recent global investors’ meeting has proven to be a remarkable success, resulting in the signing of Rs. 6.36 lakh crore worth of Memorandums of Understanding (MoUs). This development marks a significant stride for Tamil Nadu as it sets ambitious goals to transform into a one-trillion-dollar economy,” said Mr. W.S. Habib, Chairman – STATECON 2024 in his welcome address.

“Tamil Nadu has been growing in all trends and is at the forefront in this transformation. Our state has been an icon of innovation and progress setting benchmarks for others to follow other states. A recent report states that commercial space absorption is 11 million square feet. This proves Tamil Nadu is ranked in the second or third highest absorption of space in India when compared to other states,” said Mr. Sridharan, Vice President, South Zone, CREDAI National.

“Tamil Nadu is truly a cosmopolitan state, given our diverse dependencies on various sectors such as career development, agriculture, tourism, healthcare, transportation, and the intricate network of logistics and finance circuits at the state level. Our industrial landscape boasts considerable diversity, setting us apart from states like Bangalore and Hyderabad, where their focus is often singular,” Mr. Srinivas Ankipatti, Sr Director- Tamil Nadu and Kerala, Knight and Frank India.

“I strongly encourage all members, ministers, and stakeholders to seize this forum as an opportunity to initiate a departure from conventional thinking. Let’s embrace this positive momentum,” he added.

Mr. M V R Murali Krishna, General Manager, State Bank of India , said, “There is a huge growth potential for Chennai and Tamil Nadu as a whole, given the rich culture, industrialization, and excellent infrastructure. Housing growth serves as an indicator of regional economic development, contributing 7% to the country’s GDP and is expected to touch 13% of the GDP by 2025,”

Mr. S. Anand Secretary CREDAI Tamil Nadu delivered the vote of thanks by thanking the Hon’ble Ministers for taking time to be present at the inaugural session of STATECON 2024 while also encouraging the industry members stating announcements will be made shortly that will tremendously lift the morale and eventually help buyers invest in the real estate market