The Tamil Nadu Housing Board released Notification No. 01/2026 dated August 12, 2026, offering 6,775 flats, residential plots and independent houses across 14 districts in Tamil Nadu.

The properties range from 242 sq.ft. to 5,942 sq.ft., with prices starting at ₹3 lakh and reaching ₹2.98 crore.

The units will be allotted through three schemes. Each scheme has separate opening dates, deadlines and allotment rules.

Three TNHB Allotment Schemes

Under Scheme A, applicants may apply until the relevant closing date. Allotment will be decided through an electronic draw, so applying earlier does not increase the chance of selection.

Schemes B and C follow the first-come-first-served system. Applicants seeking popular properties, particularly flats in Chennai, should be ready when booking opens at 10:00 AM.

Scheme B may benefit eligible reservation-category applicants because allotment takes place within the applicable reservation category.

Who Can Apply?

Applicants must meet three basic conditions:

1. The applicant must be a native of Tamil Nadu.
2. The applicant must have completed 21 years of age on the application date.
3. The applicant, spouse and minor children must not have previously purchased a plot, house or flat from TNHB.

Owning a privately purchased property does not automatically disqualify an applicant. The restriction applies specifically to an earlier purchase from TNHB.

TNHB Monthly Income Categories

Applicants belonging to higher-income categories may apply for a lower-category property. However, EWS units can be allotted only to applicants who satisfy the EWS income limit.

Reservation in TNHB Allotment

The main reservation shares include:

• General public – 38%
• Scheduled Castes – 18%
• State Government employees – 18%, including 2% for serving judicial officers
• Central Government, TNEB and local-body employees – 8%
• Defence personnel, ex-servicemen and eligible defence families – 7%
• Washermen and hairdressers – 4%
• Working journalists – 3%
• TNHB employees – 2%
• Scheduled Tribes – 1%
• Language martyrs, state-border agitation participants and freedom fighters – 1%

A 3% preference is provided to differently abled applicants across reservation categories. Artists receive a 5% preference, while politically affected persons receive a 1% preference within specified categories.

Applicants claiming a reservation must upload the relevant certificate.

Application and Registration Fees

The fees include GST and are non-refundable. Payment must be made online through Internet Banking, Debit Card or IMPS from an account registered in the applicant’s name.

The Important 10% Payment Rule

Applicants must initially pay 10% of the property value.

• Scheme A lottery winners get only 15 minutes after selection to complete the payment.
• Scheme B and Scheme C applicants get 20 minutes during booking.
• The amount must be paid in a single transaction from the applicant’s registered bank account.
• The remaining 90% must be paid within 90 days from the allotment date.

The balance may be paid through the TNHB e-Services portal or by e-Challan, either in parts or as a lump sum.

Applicants should increase their bank transaction limits before the booking date. A low transaction limit, technical delay or failed payment could result in losing the selected unit.

Documents Required

Applicants should keep clear soft copies of the following documents ready:

• Proof of age
• Nativity certificate
• Monthly income certificate
• PAN card
• Aadhaar card
• Scanned signature
• Recent passport-size photograph
• Reservation certificate, if applicable

Trying to prepare or upload documents during the short FCFS booking window could cause delays. All documents should be prepared and checked in advance.

Important Application Dates

Scheme A projects open in stages between August 21 and August 28, 2026. Their application deadlines fall between September 19 and September 26, 2026.

Scheme B projects open between August 24 and August 28, 2026, with booking periods extending up to August 2027, subject to availability.

Under Scheme C, the Koyambedu and Varaganeri projects are already open. Other projects open on August 25 or August 27, 2026, and the listed booking deadline is March 31, 2027.

These extended closing dates do not guarantee availability. Under the FCFS system, popular units may be booked soon after the portal opens.

Complete TNHB Project-Wise Units, Sizes and Prices

The following tables cover every project listed on pages 7–11 of the guide, including its district, property type, income category, number of available units, size and TNHB selling-price range.

Sizes refer to the carpet area or plot extent in square feet. “L” means lakh.

Scheme A: Online Lottery – 2,842 Units

Scheme B: FCFS With Reservation – 2,184 Units

Scheme C: FCFS General Pool – 1,749 Units

Understanding the Price Tables

The lowest-priced units in the notification include:

• Kalinjur S&S, Vellore: EWS plots measuring 344–883 sq.ft.
• Tharapadavedu S&S, Vellore: EWS plots.
• Indicative starting price: ₹3 lakh.

Other notable options include:

• Affordable Chennai flats: Sholinganallur LIG flats from ₹36 lakh
• Anna Nagar: Flats from around ₹79 lakh, with a premium Shanthi Colony flat priced at ₹1.84 crore
• Ayanavaram: MIG flats priced between ₹90 lakh and ₹97 lakh
• Koyambedu: Large HIG flats priced between ₹1.44 crore and ₹1.46 crore
• Chengalpattu: EWS plots at Paranur and Rajakulipettai from ₹14 lakh
• Mullur Satellite Town: 888 plots across EWS, LIG, MIG and HIG categories
• Hosur Phase XVI: Premium plots priced up to ₹2.98 crore

How to Apply Online

1. Register through tnhb.tn.gov.in or propertysales.tnhb.tn.gov.in.
2. Review the project location, unit number, price, size, floor plan, undivided share, amenities and photographs.
3. Upload the required documents in the prescribed format.
4. Select the property and submit the application.
5. Pay the applicable fees and initial deposit within the permitted time.
6. If allotted, pay the remaining 90% within 90 days.

Checks to Complete Before Booking

Applicants should not depend only on the online property listing. Before applying, they should:

• Visit the site and check its location, access road and surrounding infrastructure.
• Verify the RERA registration status of the specific project, as the status may differ between projects.
• Confirm the exact unit size, floor, undivided share, layout and final cost.
• Check whether maintenance charges or other project-level costs apply.
• Remember that stamp duty and registration charges are generally separate from TNHB’s published selling price.
• Verify the latest availability, price, opening time and deadline on the official portal before making any payment.

TNHB Support Details

• Toll-free number: 1800-599-6060
• WhatsApp support: +91 95662 89561
• Main website: tnhb.tn.gov.in
• Property portal: propertysales.tnhb.tn.gov.in

Each project also has designated TNHB officials whose contact numbers are provided in the official project annexures.

Verify the Property Before Allotment

A TNHB allotment does not remove the need for property verification. Before paying a large amount, applicants should check the project approval, RERA status, site condition, property dimensions, undivided share, total purchase cost and registration expenses.

The Verified.RealEstate team can assist applicants with approval and RERA checks, site verification, cost assessment, registration-related due diligence and identifying possible compliance or investment risks before the purchase is finalised.

TNHB may revise availability, prices or dates. Applicants must therefore confirm every detail through the live TNHB portal and the official notification before applying or making payment.

Source: TNHB Notification No. 01/2026 dated August 12, 2026. All prices, availability, dates and conditions should be checked against the latest information published by TNHB.

The budget has been prepared with the goal of improving living conditions, strengthening infrastructure, and accelerating economic growth across cities and towns, which could in turn have a significant impact on property demand, land value appreciation, and overall real estate development across the State.

🏠 ‘My Home’ Scheme for Middle-Income Families

The government has announced the My Home scheme to construct affordable houses for middle-income families over the next seven years.

The scheme will involve:

• ₹15,000 crore investment through the Public–Private Partnership model
• ₹3,500 crore as ¹Viability Gap Funding
• Participation from private developers
• Government financial support to keep projects commercially workable

Under the PPP model, private companies may build the houses, while the government may provide land, approvals, infrastructure or financial assistance.

The ₹3,500 crore VGF will help cover the financial gap when affordable selling prices are not enough to recover the full construction cost.

However, details such as project locations, house prices, eligibility conditions and application procedures are yet to be announced.

🏢 Redevelopment of Old Tenements

The government has also proposed redeveloping old and ageing tenements.

Tenements are low-cost housing flats generally built by the government for economically weaker families.

The redevelopment could replace unsafe buildings with better housing, roads, drainage and basic facilities.

🧠 AI-Powered Urban Development & Comprehensive Masterplan

A key emerging focus in Tamil Nadu’s urban strategy is the integration of AI-powered planning systems and a comprehensive masterplan approach for cities and towns.

The government is expected to increasingly use artificial intelligence and data-driven tools to analyse population growth, traffic patterns, land use, and infrastructure demand in real time. This can help in:

• Designing more efficient housing layouts
• Optimising road networks
• Identifying future growth corridors with greater accuracy

The comprehensive masterplan framework aims to ensure that key urban components are not planned in isolation but in a coordinated manner, such as:

• Housing
• Transport
• Water supply
• Drainage
• Commercial development

By combining AI-based insights with long-term urban planning, the State can potentially:

• Reduce congestion
• Improve livability
• Ensure better integration of new housing projects (like the “My Home” scheme) with employment hubs, transit systems, and essential services

Overall, this approach is expected to play a crucial role in shaping sustainable and future-ready cities across Tamil Nadu.

🛣️ ₹21,524 Crore for Highways and Minor Ports

The government has allocated ₹21,524 crore to the Highways and Minor Ports Department.

Of this, ₹9,300 crore has been earmarked under the Comprehensive Road Infrastructure Development Programme.

The proposed works include:

• Widening State highways into four-lane roads
• Constructing bypass roads
• Building bridges and pedestrian overbridges
• Improving road safety
• Upgrading panchayat and panchayat union roads
• Improving the overall quality of roads

Another ₹250 crore has been allocated to repair badly damaged roads through performance-based maintenance contracts.

🚧 Tamil Nadu’s Bigger Road Vision

Apart from the Budget allocation, Tamil Nadu has proposed a ₹1.37 lakh crore road development blueprint covering around 4,543 km, aimed at significantly upgrading the State’s road infrastructure and improving long-distance and regional connectivity.

In addition, the National Highways Authority of India (NHAI) is also planning an investment of nearly ₹1 lakh crore for about 2,500 km of national highways in the State, which will further strengthen key highway corridors and reduce travel time across major routes.

Together, these projects are expected to greatly enhance connectivity to airports, ports, industrial hubs, and major cities, thereby supporting trade, logistics efficiency, and overall economic growth in the region.

📈 What It Means for Real Estate

Better roads and housing projects can increase property demand in developing locations.

Areas near:

• New bypass roads
• Four-lane highways
• Industrial corridors
• Airports and ports
• Upcoming housing projects

may see more residential and commercial development.

However, property prices may not rise immediately. The real impact will depend on the final road alignments, project approvals, land acquisition and completion timelines.

🚀 Space-Tech District and ‘Arivagam’ AI City Announced

Tamil Nadu has proposed developing Thoothukudi and Tirunelveli as Space Technology Investment Districts, using the upcoming ISRO rocket launch facility at Kulasekarapattinam as the main growth centre.

The government will also establish a common technical facility with IN-SPACe to support space companies, startups and research institutions.

Alongside this, a dedicated AI Technology City called “Arivagam” has been announced to attract investment in artificial intelligence, deep-tech and quantum technologies.

• 🚀 Space-technology districts planned in Thoothukudi and Tirunelveli
• 🛰️ Common technical facility for space companies and startups
• 🤖 “Arivagam” AI Technology City proposed
• 🎓 AI university and international skill-development centre planned
• 💻 Semiconductor labs, incubators and residential facilities included
• 💰 ₹5 crore allocated for the project’s feasibility study

To Sum Up

Tamil Nadu’s Budget gives strong importance to affordable housing and road connectivity.

The My Home scheme, redevelopment of old housing colonies, AI-driven urban planning, and major highway investments could create new real estate opportunities across the State. But buyers and investors should wait for official project locations and detailed government guidelines before making decisions.

1. Viability Gap Funding is government financial support given to make an important but otherwise unprofitable project commercially workable. ↩︎

Affordable housing is not just a concept — it is a legally defined category under the Tamil Nadu Combined Development and Building Rules, 2019 (TNCDBR).

Under Rule 39(23), the government introduced clear criteria and incentives to promote cost-effective housing across Tamil Nadu.

The goal is simple:
👉 Make quality housing accessible to more people without compromising planning standards.

📐 Size Criteria for Affordable Housing

The classification depends on location:

• Chennai Metropolitan Area (CMA)
  → Units up to 40 sq.m
• Rest of Tamil Nadu
  → Units up to 60 sq.m

This ensures that only genuinely compact and economical housing qualifies under this benefit.

💰 Key Benefit: Zero Premium FSI Charges

The biggest incentive under this rule:

👉 No premium FSI (Floor Space Index) charges for additional built-up area beyond the standard permissible limit.

What this actually does:

• Developers can build more units on the same land
• Per-unit cost reduces
• Buyers get relatively lower pricing

🏗️ Why This Rule Matters

This provision drives real impact in urban development:

• Encourages affordable housing supply
• Supports planned city expansion
• Reduces unauthorised developments
• Improves access for middle-income buyers

🌊 Critical Reality: Does This Apply Everywhere?

Short answer: No. Not even close.

Affordable housing benefits apply only where legally permitted. They do not override environmental or land restrictions.

🌊 Coastal Zones (CRZ Areas)

If a project falls under the Coastal Regulation Zone Notification (CRZ):

• CRZ rules override TNCDBR provisions
• Strict controls on:
  • Construction activity
  • Height restrictions
  • FSI / density
• Mandatory approvals from
  → Tamil Nadu Coastal Zone Management Authority

👉 Even if labeled “affordable housing,”
you cannot use extra FSI beyond CRZ limits

🌿 Sensitive / Restricted Lands

This includes:

• Water bodies and buffer zones
• Flood-prone areas
• OSR lands
• Poramboke / government land
• Heritage zones

In such cases:

• Planning and environmental rules come first
• FSI benefits may be reduced or rejected
• Additional approvals become mandatory

⚖️ Rule Hierarchy (This Is Where Most People Go Wrong)

👉 Environmental & safety laws override everything

So the order is:

1. Environmental laws (CRZ, flood zones, etc.)
2. Local planning restrictions (CMDA / DTCP conditions)
3. TNCDBR incentives (like affordable housing FSI benefits)

👉 If the first two restrict development,
Rule 39(23) becomes irrelevant

🚨 Common Developer Misleading Tactic

You’ll often see:

“Affordable Housing Project – Extra FSI Benefit Available”

But what they don’t tell you:

• Land falls under CRZ or restricted zone
• Actual usable FSI is limited
• Approvals may be conditional or incomplete

👉 This is a classic trap for buyers.

🧠 What Buyers Must Verify

Before trusting the “affordable housing” tag:

• Approval from
  → Chennai Metropolitan Development Authority
  → Directorate of Town and Country Planning
• Whether the project truly qualifies under Rule 39(23)
• Land zoning (CRZ / restricted / normal)
• Actual FSI approved vs claimed
• Legal documents (EC, Patta)

🛡️ How Verified.RealEstate Helps

Before you invest, Verified.RealEstate ensures:

• Full Encumbrance Certificate (EC) verification
• Detection of hidden legal risks
• Zoning and restriction checks (CRZ, OSR, etc.)
• Approval validation and on-ground due diligence

👉 So you don’t rely on brochures — you rely on facts.

📊 Investor Insight

Affordable housing is attractive because:

• Strong end-user demand
• Faster resale potential
• Lower ticket size = higher market reach

But only if the project is legally clean.

✨ Final Takeaway

Rule 39(23) of TNCDBR 2019 is a powerful incentive — but it is not a loophole.

👉 If the land is restricted, the benefit doesn’t apply.
👉 If approvals are conditional, the risk is yours.

Affordable housing is only “affordable” when it is also legally compliant.

Addressing Housing Shortages

The approved projects will fall under the Affordable Rental Housing Complexes (ARHC) sub-scheme of PMAY-U, which targets improving living conditions for low-income families and workers. The ARHC scheme offers two models: converting existing government-built vacant houses and constructing new units. The latest projects focus on the latter, ensuring a robust supply of rental housing in the state.

Among the five approved projects, notable developments include:

1. Hosur Project: Managed by Tata Electronic Power Limited, this initiative will comprise 1,500 single-bedroom units, 2,000 dormitories, and 500 double-bedroom units.
2. Sriperumbudur Project: SPR City Estates Private Limited is set to construct over 18,000 dormitory units aimed at accommodating the large workforce in the area.
3. Chennai Developments: The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) plans to build more than 18,700 dormitories in Chennai, while Chennai Petroleum Corporation Limited (CPCL) will add 840 dormitories and 200 single-bedroom units.

Compliance with Guidelines

According to the guidelines established for the ARHC, developers must ensure that housing units are equipped with necessary amenities and easily accessible to the workforce. The specifications for housing units are as follows: single-bedroom units will be approximately 30 square feet, while double-bedroom units will span 60 square feet. Dormitory halls are designed to accommodate four to six beds.

Furthermore, the buildings constructed under this scheme are expected to have a minimum useful life of 25 years, ensuring durability and long-term support for the residents.

Positive Impact on Urban Development

The approval of these rental housing projects represents a significant step towards achieving the government’s goal of providing affordable housing for all. By focusing on the needs of the urban poor and migrant workers, the initiative is likely to improve living conditions and stimulate local economies.

The move not only enhances the availability of affordable housing but also aligns with broader national objectives to create sustainable urban habitats. By enabling the private sector’s involvement alongside public entities, Tamil Nadu is setting a precedent for collaboration in urban development projects.

Future Prospects

As Tamil Nadu continues to implement the PMAY-U and related initiatives, the focus remains on addressing the housing crisis in urban areas. The successful execution of these projects will be critical in shaping the future landscape of affordable housing in the state, providing essential support to the working population while also contributing to the overall economic growth.

This proactive approach to rental housing will likely inspire other states to adopt similar measures, amplifying efforts towards a more inclusive and equitable urban environment across India.

If you’d prefer to have everything handled for you seamlessly, you can click here and contact us at verified.realestate. Our team of experts is here to provide comprehensive support and ensure a smooth and secure property buying experience.

With large-scale projects like the Chennai Metro expansion and the Chennai-Bengaluru Industrial Corridor, the state’s real estate market has seen consistent price appreciation. Government regulations like RERA and GST reforms have also enhanced transparency and bolstered buyer confidence.

Key Real Estate Hubs and Emerging Regions
Chennai remains a prime market, with areas like OMR and GST Road seeing new residential and commercial projects. Meanwhile, emerging suburbs are experiencing rapid development due to infrastructure projects. Sriperumbudur and Chengalpattu are now popular for homebuyers seeking affordability and future growth.

Infrastructure Developments and Their Impact
The Chennai Metro expansion and elevated corridors are drastically improving connectivity, making areas along these routes prime for real estate investments. Other projects like the Chennai-Bengaluru Industrial Corridor are also shaping the future of the state’s property market by attracting both commercial and residential developments.

Price Appreciation and Housing Options
Tamil Nadu’s real estate market has seen consistent price growth due to increased demand and infrastructure development. Established areas command higher prices, while emerging regions offer more affordable options with significant potential for return on investment. The market caters to a variety of preferences, with two-BHK and three-BHK configurations remaining popular, while smaller units such as one-BHK and studio apartments are also on the rise due to affordability.

Government Reforms and Regulations
Recent government regulations, such as RERA, GST adjustments, and stamp duty reductions, have increased transparency and accountability in the real estate sector. The focus on affordable housing and sustainable development has further boosted buyer confidence.

Future Outlook
The real estate market in Tamil Nadu is poised for continued growth, driven by infrastructure enhancements, policy changes, and evolving consumer preferences. The upcoming fiscal year promises diverse opportunities for both budget-conscious buyers and those seeking premium properties. Overall, Tamil Nadu’s real estate sector is becoming increasingly attractive for investment and homeownership, with strong prospects for long-term growth and innovation.

If you’d prefer to have everything handled for you seamlessly, you can click here and contact us at verified.realestate. Our team of experts is here to provide comprehensive support and ensure a smooth and secure property buying experience.

Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY) is a flagship scheme by the Indian government aimed at providing affordable housing to all by 2022. The scheme has two components: PMAY-Urban (PMAY-U) and PMAY-Gramin (PMAY-G).

Under PMAY-U, the focus is on providing affordable housing in urban areas. Beneficiaries are classified into four income categories: Economically Weaker Section (EWS), Low-Income Group (LIG), Middle-Income Group-I (MIG-I), and Middle-Income Group-II (MIG-II). The scheme offers interest subsidies on home loans, making housing more affordable for the urban poor.

PMAY-G targets rural households, providing financial assistance for the construction of pucca houses. Beneficiaries include households without a permanent residence and those living in kutcha houses. The scheme ensures that rural families have access to decent living conditions.

Benefits of PMAY

• Interest Subsidy: Under the Credit Linked Subsidy Scheme (CLSS) component of PMAY, eligible beneficiaries can avail of interest subsidies on home loans. This reduces the overall cost of the loan and makes homeownership more affordable.
• Financial Assistance: For rural beneficiaries, PMAY-G provides financial assistance for constructing new houses, ensuring access to basic amenities like sanitation, water, and electricity.
• Inclusive Development: PMAY promotes inclusive development by targeting economically weaker sections and low-income groups, thereby improving living standards and reducing poverty.

Case Study: Success of PMAY in Chennai

Mrs. Lakshmi, a resident of Chennai, benefitted greatly from the PMAY-U scheme. As a member of the Economically Weaker Section (EWS), she struggled to find affordable housing for her family. Upon learning about the PMAY scheme, she applied and was granted a home loan with a significant interest subsidy. This financial support enabled her to purchase a modest apartment in the city, improving her family’s living conditions and providing them with a stable home. Mrs. Lakshmi’s story is a testament to how PMAY-U has empowered numerous families in Chennai to achieve their dream of homeownership.

Eligibility Criteria for PMAY

• Income Criteria: Different income groups have specific eligibility criteria. EWS households have an annual income up to ₹3 lakh, LIG households between ₹3 lakh and ₹6 lakh, MIG-I households between ₹6 lakh and ₹12 lakh, and MIG-II households between ₹12 lakh and ₹18 lakh.
• Housing Status: Applicants should not own a pucca house either in their name or in the name of any family member across India.
• Location: For PMAY-U, applicants must reside in urban areas; for PMAY-G, applicants must belong to rural areas.

Tamil Nadu Housing Board (TNHB) Schemes

The Tamil Nadu Housing Board (TNHB) plays a crucial role in providing affordable housing solutions in the state. TNHB offers various schemes for different income groups, ensuring housing access for all.

Benefits of TNHB Schemes

• Affordable Housing: TNHB provides housing units at affordable prices, catering to the needs of low and middle-income groups.
• Variety of Options: TNHB schemes include apartments, individual houses, and plots, offering a range of choices to the beneficiaries.
• Transparent Allocation: TNHB follows a transparent allocation process, ensuring fair distribution of housing units to eligible applicants.

Eligibility Criteria for TNHB Schemes

• Income Group: Different schemes target different income groups. Applicants must meet the income criteria specified for each scheme.
• Residence: Applicants must be residents of Tamil Nadu and should not own any other residential property in the state.
• Application Process: Interested applicants must apply through the TNHB’s official website or designated offices, providing necessary documents and fulfilling all required criteria.

Green House Scheme

The Green House Scheme, also known as the Chief Minister’s Solar Powered Green House Scheme (CMSPGHS), aims to provide eco-friendly housing solutions to rural households in Tamil Nadu. The scheme promotes the construction of solar-powered houses, ensuring sustainable and energy-efficient living.

Benefits of the Green House Scheme

• Solar Power: Houses constructed under this scheme are equipped with solar power systems, reducing electricity costs and promoting renewable energy use.
• Environmental Sustainability: The scheme encourages eco-friendly construction practices, contributing to environmental conservation.
• Financial Assistance: Beneficiaries receive financial assistance for constructing green houses, ensuring access to modern amenities and improved living conditions.

Eligibility Criteria for the Green House Scheme

• Residence: The scheme is targeted at rural households in Tamil Nadu.
• Income: Priority is given to economically weaker sections and low-income families.
• Housing Status: Beneficiaries should not own a pucca house and must meet the eligibility criteria set by the government.

Conclusion

Government housing schemes in Tamil Nadu, such as PMAY, TNHB schemes, and the Green House Scheme, play a vital role in addressing the housing needs of the state’s population. These schemes offer numerous benefits, including financial assistance, interest subsidies, and access to affordable and sustainable housing. By understanding the benefits and eligibility criteria, potential beneficiaries can take advantage of these schemes to secure a better living environment and improved quality of life.