Ever thought of buying a Housing Board flat ?

The Chennai Property market is a night mare to many, with rates,rentals going crazy amid reports that there is down trend now with prices falling 25%. So there is confusion among a lot of folks out there whether to make an investment now or not. To me, all i would say is never try to time the market, YES, same Golden rules as it for stock market. Dont speculate much but may be to a certain extent.

Coming to the article, have you ever thought of buying a Housing Board flat?. Current housing investors are most youngsters with an average age of 28-30. I am sure not many would consider first of all buying a second hand flat leave alone go for a housing board flat which is constructed some 15 years.

Housing Board flat are always looked up as cheap quality houses. While that is partly true, there are many good flats out there constructed by TamilNadu Housing Board which are of very good quality. I still remember seeing a fantastic 2 BHK of around 900 sq ft flat in prime area near Anna Nagar for Just 11 lakhs when flats at that area was sold for 18 lakhs. But not many people realize the potential value that can be unlocked in a old housing board flat.

To start with Housing Board flats comes with a price that can be considered affordable. 2 Years back i bought a housing board flat in a KK Nagar for Rs 9 lakhs (including registration). We did a complete make over spending another 2 lakhs and believe me the current market value is nearly 15 lakhs.

Since these flats are constructed long time back, they strictly follow the CMDA rules ,No deviation, good FSI ratio (Floor space index). What does this mean to you. In plain terms, you get more land share for the money you invest. If you are buying a HB flat of 550 sq ft, then you should be eligible for a land area of around 800 sqft. So while the building stands, you gain rental income and if its too old to demolish, then you stand to gain the land value which is already sky rocketing.A lot of Housing Board flats are located in prime areas of KK Nagar, Anna Nagar, Ashok Nagar for which the land value is yet to be unlocked. I am sure people looking to buy a decent house for less than 10 lakhs in city can look no furthur.

But now a days i heard, these flats are of great demand. Incase you are considering buying a housing board flats, keep in mind the following things,

a) Go for a flat which is located in small complex.This has better resale value, and incase you convince other owners then you can sell the entire flat to a Builder and go for demolish and reconstruct. I know atleast Jain’s apartment in Ashok Nagar which was earlier a housing board flat. Dont go for a HB flat in a complex where there are around 200+ flats.

b) Always go for HIG flats (Higher Income Group). Ignore LIG and MIG flats (Lower and Middle) which are often not maintained well. HIG are mostly occupied by senior government executives.

c) Remember that you have to spend additional on Renovation,flooring, electricals etc, so negotiate considering these expenses.
d) Ensure that Encumberance certificate is to the order.
e) Most of these flats dont have lifts, so better to look for ground floor flats which has more resale value.

I think i had covered all on buying a housing board flat. Incase you like this article or have sugessions, then please Comment.


  1. Suresh

    Nice notes, how can i find the available HIG

  2. Suresh,

    thanks for the comments, there is no way to find HIG flats for sale in prime areas other than word of mouth or looking for one directly in those apartments. Go and check in each of the hig flats which you like. Good source of information can be watch man’s and secretary’s.


    excellent! i am staying in k k nagar and am looking for a second hand housing board flat for rs.10-15 laks. if you can, please guide me

  4. kesavan

    Whether HIG flats are okay..Please attach layout of HIG (B3 or B4).If it is in snap,I’ll be grateful.thx..

  5. kesavan

    I want the layout of HIG flats.If some photos available plz give in attachment.

  6. kesavan


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