Chennai, August 2026: The Tamil Nadu Government has announced a major boost for the housing sector by allocating Rs 8,852 crore to the Housing and Urban Development Department in the 2026–27 State Budget. The budget introduces a series of initiatives aimed at increasing affordable housing, redeveloping ageing residential buildings, strengthening urban infrastructure, and improving long-term city planning. A key highlight of the budget is the launch of the 'My Home' Affordable Housing Scheme, which aims to provide affordable homes for middle-income families and economically weaker sections (EWS). Under the scheme, 1 lakh houses will be constructed over the next seven years through the Public-Private Partnership (PPP) model. To support the implementation of the scheme, the government has proposed an investment of Rs15,000 crore under the PPP model. In addition, Rs 3,500 crore has been earmarked as Viability Gap Funding (VGF) to improve project feasibility and encourage greater private sector participation in affordable housing projects. The government also stated that 24,131 affordable housing units are currently under construction across Tamil Nadu. Construction of an additional 14,194 housing units is expected to begin during the current financial year, further expanding the supply of affordable homes across the state. Another major announcement focuses on the redevelopment of ageing and dilapidated residential tenements. A total allocation of Rs 1,253 crore has been made to replace old housing structures with modern residential developments that offer improved safety, infrastructure, and living conditions. To support Chennai's future growth, the budget has allocated Rs 25 crore for preparing a Comprehensive Master Plan for the expanded Chennai Metropolitan Area, covering 5,904 square kilometres. The master plan will provide a long-term framework for residential development, transportation, infrastructure, environmental protection, and sustainable urban expansion. The budget also proposes the introduction of an AI-powered governance platform to modernize housing administration, improve service delivery, enhance project monitoring, and streamline urban planning processes through digital technologies. The new housing initiatives are expected to strengthen Tamil Nadu's real estate sector by increasing the supply of affordable homes, encouraging private investment, supporting first-time homebuyers, and promoting planned urban development. The redevelopment of ageing residential areas and preparation of a comprehensive metropolitan master plan are also expected to improve infrastructure and create long-term growth opportunities across Chennai and other urban regions.