Why I love Tamilnadu Housing board flats

I wrote about the advantages of housing board flat last year and today saw a nice article on how much it is valued upon. The one which i bought is in prime KK nagar and for around 9 Lakhs and now it is valued more than 20 L.

Read this article

A year ago a software firm approached the owners of Millennium Apartments in Anna Nagar with an offer to buy 48 of their flats facing the Kolkata High Road for Rs 24 crore.
The offer was a whopping Rs 50 lakh per apartment. Till two months before that, the flats could not have fetched more than Rs 15 lakh each. These low income group (LIG) flats are 550 sq ft each and enjoy an equal area of undivided share of land too.
“The initial reaction of our owners, as the broker offered the rate, was one of disbelief. As it sank in, we got to know that the mediator was working on behalf of an IT firm,” said T Chandran, the owner of one of the LIG flats.
“As we worked out the economics, we found that as against a floor space index (FSI) of just 1.0 that we were enjoying in the old building, the new builder would be able to achieve 2.5 FSI because our land faces a 120-ft road. The builder would also be able to convert the land into commercial or IT space without any difficulty as buses ply on the adjoining road. We got down to bargaining and demanded Rs 80 lakh per flat. It got dragged and finally, when the buyer agreed for Rs 80 lakh per unit, some owners raised the demand to Rs one crore,” Chandran, told The Times of India.
The deal did not happen as the IT firm backed out after much haggling. Still, the owners have nothing to lose as they are sitting on a gold mine of 11 grounds (one ground is 2,400 sq ft). What the IT firm offered then was an astronomical price, almost twice that of what prevailed in the region.
“Taking into account the commercial value of the land (it is located right opposite to Metro Zone, an integrated township jointly promoted by the Reliance, Ozone Group and the HDFC), it would sell like hot cakes once the owners form a consensus,” noted Chandran, who had paid only Rs 60,000 for his house in 1984.
Chandran is one among the many retired government employees who just about managed to buy their own houses in the city, thanks to the Tamil Nadu Housing Board (TNHB) initiatives in the last few decades.
It is immaterial as to whether they own low income group (LIG), middle income group (MIG) or high income group (HIG) flats. All their houses are in prime residential and commercial areas, adjoining many arterial roads, and hence potential properties for exploiting to the full potential the underutilized development rights.
While the old LIG flats have an average FSI of 1.0 and MIG and HIG flats ranging from 0.5 to 0.8 FSI, once they are pulled down, the builder can achieve an FSI ranging from 1.5 to 2.5, depending on the width of the adjoining roads.
Places like Anna Nagar, Mogappair, Besant Nagar, K K Nagar and Ashok Nagar in the city have several thousand TNHB apartments, which have huge potential for re-development.
It is estimated that Chennai and its outlying areas have close to 50,000 TNHB apartments which are more than 25 years old, according to a senior official of the board.
At a time the real estate sector is going through a softening phase, these TNHB flats fetch more money than their private counterparts in the region.
In Santhi Colony in Anna Nagar, where private builders sell new flats at Rs 8,000 per sq ft, the 860-sq ft MIG apartment of T Gopalan has an offer of close to Rs 15,000 per sq ft.
Obviously, the builder, who is eyeing his two-bedroom flat, is looking only at the undivided share of land, measuring 1,800 sq ft, held by Gopalan. Compared to the rate at which one of his neighbours sold his flat in the same MIG building last year, the offer made to Gopalan is 30% more.
Allaying fears in the minds of residents about redeveloping old Housing Board apartments, a senior official of the Chennai Metropolitan Development Authority (CMDA) said, “There is no restriction on pulling down old Housing Board flats and constructing high-rise buildings. The normal development control rules are applicable to them.”
In 2004, the Housing Board had introduced a condition that whenever a builder promotes a project by demolishing TNHB flats, the builder will have to pay 10% of the market value of the additional floor space index he gets, to obtain a no-objection certificate from the board.
This NOC was made mandatory for getting project approvals from the CMDA and Directorate of Town and Country Planning. However, the TNHB order has been challenged in the court.

Redevelopment: The pros and cons

Housing Board flat owners enjoy extra development rights, which can be leveraged either by joining hands with other neighbours and extending the area or by selling it to builders.
While only end customers show interest in purchasing private apartments, builders buy Housing Board apartments as they can be pulled down to construct upmarket skyscrapers.
Builders provide owners new flats and also some cash, depending on the market price of new apartments in the locality. Owners are also provided alternative space to stay till the project is completed.
Housing Board apartments abutting bus routes fetch very high price. Builders pay a premium for such buildings as they can be converted into commercial establishments without much hassle.
Bringing together all the owners in a housing board complex to fully exploit the development rights is a laborious task. Even if one owner puts spanner in the works, the project gets stuck.
There would be conflict of interest between the elderly and the younger lot. While the youngsters would want to go in for a modern building, the oldage people would mostly prefer their old homes.
If builders do not show interest in purchasing or redevelopment, housing board flats will not fetch attractive rates. Ordinary buyers will not pay a premium as they will not be attracted by the unexploited development rights.
Builders seldom provide alternative accommodation (while constructing the new building) in the same locality. Relocating to far-off places can be problematic for office-goers and schoolchildren.

39 Comments

  1. JUI SENGUPTA

    i have been in chennai for 15 years , now interested to buy an MIG TNHB FLAT ,can any one tellme how to apply for these flats, or how to buy one MIG /HIG ,FLAT, in chennai.i would really appreciate if someone can help me out.

  2. sundaravadivel natarajan

    Dear Sir,
    I own a Tamil Nadu Housing Board Flat in adjoining Anna Nagar.
    There are 16 flats on one block consisting of 8 flats on either side without space facing 7.2 meter witdth road. On one side (ground + three) +staircase in the middle + (ground + three) adjoined by (without space ) ( ground + three) +staircase in the middle + (ground + three) on other side. The block has open area around. What is the undivided share of each owner? Whether each owner has equal rights over the land around the block.

    Kindly clarify the above points with relevant rules if any.

    Looking forward your kind clarification.

  3. kani

    I am interested in buying MIG/HIG Flats in Besant nagar or
    mylapore area. can somebody help me.

  4. You can approach the housing board office that has jurisdiction over your flat complex and request them to give you a letter stating the UDS that your flat has.

    Another way to figure this out is to look at the allotment letter or the original transfer deed when the TNHB transferred the flat to the original buyer.

  5. manikandan

    dear sir, am from madurai anna nagar. I have one HIG house in second floor in prime location. Area is 920 sq ft. fully tiles and cupboard. Are you interest please contact me. 9842194840

  6. pillai

    i got/bought a flat alloted in the hig from the tamil naidu housing board in 2008.are there any restrictions on my selling it.if yes what is it

  7. Murali

    Kani your article is very interesting. Yet it is very difficult to get the group of residents together. Also as your article shows greed begins to prevail. At some stage everyone needs to sacrifice something to get something better. Some understand… yet some wait… spoiling it for the rest.

    Any how, there is a MIG flat available for sale ( 52.5L). It has to be extended. After extension the floor area could be 1100 aprox. So if there are genuine buyers ask them to mail me.

  8. we are a chennai based agency who have clients int. in purchasing TNHB properties. Anyone willing to sell may please contact us and we will be happy to facilitate the deal. Our clients are looking for TNHB flats at Besant Nagar in AS IS condition.

  9. Murali Please let me know If the flat is still available and your contacts if so.

  10. StarsNSkies

    hello experts..
    i m planning to buy a tnhb apartment in thiruvanmiyur (seaward road). can anyone provide me with some insight on what valuation would a 900 square feet ground floor flat can fetch in that area.. your inputs would be helpful.

  11. Ramesh J

    Hi Murali,

    Location please…

  12. Mrs.Usha

    a flat at besant nagar, MIG for sale

  13. priya

    mrs.Usha plz give me the details regarding ur besant nagar flat

  14. I want a small house for myself to stay in a decent locality just for Rs.6 lakhs which I can afford to pay as I have nobody to support. can anyone help me for that. i am aged 60 years and I suffered a lot in rental houses for nearly 32 years.

  15. I need a small portion for myself. i am aged 60 years and staying alone. i can pay [ afford ] only Rs.6 lakhs. can anyone help me to have a small portion 1 room, kitchen attached bath and toilet with water and eb connection.

  16. mrs usha i want to buy your home. can u call u me. 9443777344 please. thanks

  17. ayappan r

    looking for an old tnhb flat. pl advise.

  18. ramakrishnan.m

    i nead  your  help  to  buy   LIG   FLATES   PLEASE  CONTACT  NO 9380666729

  19. Arun

    I have a TNHB flat in besant nagar, very good location.If interested contact me
    captarunchandran@gmail.com
    Iam settled in USA, planning to sell.
    UDS of the flat is 1200sqft to 1450sqft

  20. sowmya c

    i am interested in buying tnhb flats or plots in and around chennai

  21. Soundara Rajan

    tnhb mig flat in besant nagar for immediate sale. very close to beach.

  22. srijayanthimurali

    i am willing to purchase  a flat with one bedroom of housing board. can anybody willing to sell their flat pls intimate to me

  23. Anita

    I would like to sell my Annanagar TNHB flat. Details are

    HIG, 1000 sft, Malar Colony, Near Annanagar bus depot, 1 Km from Thirumangalam, The block is likely to be extended to 1750 sft. House no 419B

  24. DharmaKumar

    Hi Soundara Rajan,

    I am interested.Please let me know the price so that we can decide whether it is affordable.

  25. ARUN

    I have a TNHB 595SQFT flat in besant nagar, very good location.If interested contact me
    captarunchandran@gmail.com
    Iam settled in USA, planning to sell. – as iam not able to come to india
    UDS of the flat is 600sqft
    Builders given offer for new flat plus money/rent till construction
    54L no bargain

  26. Divya

    Hi Anita,

    Please let me know the price so that we can decide whether it is affordable????

  27. Syed Ibrahim Badusha

    I am an NRI interested in TNHB flat. Any restrictions for NRIs… If not, would like to buy one. Visiting India in December. Budget Rs.50 lacs. Interested sellers may contact me badusha.syed@gmail.com

  28. lakshmi

    Hi all if anybody wants to sell his tnhb flats in anna nager ,plz let me know………..

  29. Ram

    I have a tnhb flat 1100 sq ft uds 850 sq ft in Luz corner Mylapore. 2 br first floor on the main road – semi furnished with a/c, grills and cupboards.

  30. Anand

    Hi , if anybody wants to sell his TNHB flats in anna nagar West ,Please send details to anandrajp@gmail.com

  31. madhu

    hey will flats in kodambakkamgo for redevelopment??

  32. LASH

     what is the current value  of  mig flats  in besant nagar 

  33. Syed Ibrahim Badusha

    @ Ram. Could you pls contact me in badusha.syed@gmail.com with further details of your Myl flat.

  34. Syed Ibrahim Badusha

    @ Ram. Could you pls contact me in badusha.syed@gmail.com

  35. Vijay

    I am looking for TNHB flats in Annanagar.  Please contact me if any flats are available.  My email is vijaypwadhwa@gmail.com

  36. Anna

    Dear Sir, Is any restrictions to a person to resale his property which was purchased from Tamil Nadu Housing Board

    Thanking you,
    Anna A

  37. priya

    I want to apply for a tnhb flat or plot. The tnhb website displays all the details but does not show the latest call for sale of land or flat. As I am staying outside TN, please let me know in which website does the tnhb advt gets published for the latest sale of land or flat.

  38. A.Venkatesan

    Kindly let me know an HIG/MIG TNHB flats in KK Nagar area

  39. nazneen

    sir
    i want to buy housing board flat near annanagar ashok nagar  pl let me know

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