The Chennai Metropolitan Development Authority (CMDA) has revolutionized the real estate approval process by launching the Online Planning Permission System (OBPPS) in May 2022. This digital transformation has significantly reduced the time taken for planning permissions, cutting the approval duration to just one-third of the previous timeframe. The shift to an online system has provided a significant boost to the real estate sector, ensuring quicker project launches and improved efficiency.
Accelerated Approvals: A Game-Changer for Construction Permits
Before the introduction of OBPPS, CMDA processed planning permissions at a much slower pace:
● 70 high-rise buildings, 426 non-high-rise buildings, and 197 layouts were approved manually.
● The average approval time was 180 days for all applications.
Since the implementation of OBPPS, approval timelines have improved drastically:
● In 2022, the approval time reduced to 157 days.
● In 2023, it further dropped to 107 days.
● In 2024 (as of November), approvals were granted within an average of just 69 days for:
○ 104 high-rise buildings
○ 597 non-high-rise buildings
○ 269 layouts
This digital shift has streamlined approvals, making the process more efficient and transparent.
Seamless Integration with Government Departments
The OBPPS is linked with multiple urban and rural authorities, including:
● Greater Chennai Corporation
● Directorate of Municipal Administration
● Directorate of Town Panchayats
● Rural Development and Panchayat Raj Department
These integrations have facilitated the end-to-end online issuance of building permits, eliminating bureaucratic delays and ensuring a smoother experience for developers.
No-Objection Certificates (NOC) Simplified
The OBPPS is also linked with 19 departments responsible for issuing No-Objection Certificates (NOCs). To prevent unnecessary delays:
● If a department fails to issue a NOC within 30 days, it is automatically deemed approved.
● This mechanism has significantly reduced red tape and expedited the approval process.
● The number of online applications has increased by 45%, reflecting strong adoption of the new system.
Expansion of Digital Services: Layout Permission Module
While the building permission system was launched in May 2022, CMDA introduced the Layout Permission Module in November 2023. This addition allows developers to obtain layout approvals digitally, further enhancing efficiency in the real estate sector.
Chennai’s Real Estate Market: Strong Demand and Rising Prices
The Confederation of Real Estate Developer’s Associations of India (CREDAI) has highlighted that Chennai’s residential real estate market remains strong and resilient. The city is experiencing historically low unsold inventory, reaching its lowest point in seven years, which is a clear indicator of high demand for residential properties. Additionally, property prices have surged by 6.5%, primarily driven by growing buyer demand and rising input costs in construction materials and labor. This positive market momentum, coupled with faster planning approvals through the Online Planning Permission System (OBPPS), has further motivated developers to launch new projects, reinforcing Chennai’s position as a thriving real estate hub.