CREDAI Seeks Faster Urban Planning to Power Tamil Nadu’s $1 Trillion Economy Vision

WS Habib, President of CREDAI Tamil Nadu and CMD of RWD, has highlighted the critical need for expedited master plans and approval systems to unlock the State’s real estate and economic potential. Addressing media representatives, he said that the timely implementation of master plans across 135 towns and cities could significantly contribute to Tamil Nadu’s ambitious goal of becoming a $1-trillion economy by 2030.

Why Master Plans Matter

According to Habib, the lack of a clear master plan hinders investor confidence by creating uncertainty around urban growth patterns. He noted that such plans not only enable structured development and land value appreciation but also drive planned urbanisation—key factors in boosting real estate performance.

He added that while discussions with the government are ongoing regarding the master plan, the process needs to accelerate to keep pace with the state's development targets.

Commercial Projects Getting Preferential Treatment?

Habib pointed out a growing concern in the industry: commercial real estate projects tend to receive approvals more swiftly compared to residential ones. He advocated for digitised, time-bound single-window approval systems for the residential sector as well, to level the playing field and reduce unnecessary delays.

Common Challenges, Uneven Impact

He acknowledged that both commercial and residential sectors face hurdles such as delayed clearances from RERA and high input costs. However, he explained that the consequences of these issues differ—residential developers often feel the brunt more sharply due to their customer base and margins.

First-Time Buyers Feeling the Heat

Srikumar Swaminathan, Secretary of CREDAI Tamil Nadu, shared that material costs have risen sharply—by nearly 30-40%—which is placing immense strain on residential developers. With about 20% of the cost going to government taxes, affordability for first-time homebuyers has taken a hit, he said.

Making Tamil Nadu Real Estate Globally Competitive

The CREDAI leadership emphasized that the sector plays a pivotal role in Tamil Nadu’s GDP. They called for increased and more consistent collaboration between industry players and the government. There’s also a push to align local real estate standards with international best practices, drawing inspiration from urban strategies in countries like South Korea.

Expanding Statewide Reach

To amplify its influence and representation, CREDAI Tamil Nadu is set to expand its chapter network. Beyond the current 10 chapters, new ones are planned in Sivagangai, Vellore, Karur, Nilgiris, and Thanjavur—strengthening local engagement and industry development across the state.

Disclaimer: This news article is based on statements made by CREDAI Tamil Nadu officials and is intended for informational purposes only. Readers are advised to verify with official sources before making any business or investment decisions.