TNHB’s Affordable Commercial Complexes Emerge as Preferred Choice for Government Offices in Chennai

The Tamil Nadu Housing Board (TNHB) is transforming Chennai’s office space market with its newly developed commercial complexes, which are fast emerging as budget-friendly hubs for government departments. By offering rentals that are nearly 20% cheaper than private properties, TNHB has positioned itself as an attractive alternative for agencies struggling to secure centrally located office space.

Departments such as the Employee’s Provident Fund Organisation (EPFO) and the Goods and Services Tax (GST) have already shifted into TNHB complexes, citing affordability and accessibility as key advantages. A TNHB official confirmed that GST has occupied a block in CIT Nagar, while EPFO has taken up multiple floors. These complexes, sized between 7,000 sq ft and 18,000 sq ft per floor, are designed to provide modern amenities at competitive rates.

Several TNHB commercial complexes are already operational across prime city locations, including Ashoka Colony in KK Nagar, Mogappair, CIT Nagar, Arumbakkam, Ashok Nagar, Peters Colony, and Besant Nagar. With metro connectivity and central access, these spaces have become particularly appealing to government bodies that previously faced logistical challenges in moving staff to peripheral areas like Koyambedu.

So far, TNHB has successfully sold complexes at Chintamani and Anna Nagar to various government entities, including the Tamil Nadu Real Estate Regulatory Authority (TNRERA). With about 70% of its newly developed spaces already leased, the Board is now scouting for private sector tenants to occupy the remaining floors.

Looking ahead, TNHB is set to expand its portfolio with three ambitious projects in Ashok Nagar, Arumbakkam, and Peters Colony. The Ashok Nagar tower will rise to 22 floors, combining commercial use on the lower floors with residential units above. The Arumbakkam tower, covering 33,245 sq m, is nearing completion, while the Peters Colony project will feature 17 floors above three basements, spanning 75,299 sq m.

To encourage private sector participation, TNHB has invited consultants for feasibility studies, marketing strategies, and transaction advisory services. TNHB Chairman Poochi S Murugan stated that the focus is on ensuring connectivity and affordability, making these complexes attractive not only for government agencies but also for corporates seeking cost-effective alternatives in Chennai’s real estate market.