CREDAI Chennai urges AAI to fast-track NOCs as project delays push up construction costs

The real estate sector in Chennai is facing a fresh bottleneck as CREDAI Chennai has urged the Airports Authority of India (AAI) to expedite the release of no-objection certificates (NOCs) for building projects, particularly high-rise developments.

According to the developers’ body, delays in issuing NOCs are significantly impacting project timelines, pushing up construction costs, and affecting overall investment sentiment in the city’s rapidly growing real estate market.

In a formal representation submitted to the airport director, CREDAI Chennai pointed out that several developers are experiencing prolonged processing times even when their applications fully comply with prescribed height restrictions and obstacle limitation norms. The body noted that these delays are also affecting statutory approvals from planning authorities, resulting in project deferments and financial strain.

Industry representatives said that at least five to six major high-rise projects in Chennai have already been stalled because of pending clearances. Key growth corridors such as Avadi and Tambaram, where Indian Air Force presence requires additional approvals, are also witnessing delays.

S Sridharan, executive committee member of CREDAI National, said the delay in approvals has a cascading effect on the sector, leading to increased borrowing costs, delayed launches, and higher end-user prices.

The association has called for the introduction of clear timelines for approvals, improved communication regarding application status, and a coordinated mechanism that can help developers plan projects with greater certainty.

Chennai’s real estate market has been witnessing strong momentum across residential, commercial, and mixed-use developments. However, industry experts believe that faster regulatory clearances will be critical to sustaining this growth and supporting infrastructure-led urban expansion.

CREDAI Chennai has also expressed its willingness to work closely with AAI and other authorities to streamline the approval process and reduce avoidable delays.