The Tamil Nadu Stone Quarry, Crusher and Lorry Owners Association increased the prices of M-sand, P sand and jalli by Rs1,000 per unit from Tuesday. The association had launched an indefinite strike on April 16, urging the govt to withdraw the newly imposed mineral-bearing land tax. The Mines Department began levying this tax - Rs90 per tonne of rough boulder - starting April 4. With the introduction of this tax, quarry owners are now required to pay an additional Rs700 per unit of rough boulder. In addition, the seigniorage fee was revised from cubic metres to one tonne, resulting in an additional payment of Rs554 per unit to the Mines Department, compared to the earlier Rs254. K Chinnasamy, president, Tamil Nadu Stone Quarry, Crusher and Lorry Owners Association, said a meeting was held with water resources minister Duraimurugan and senior govt officials on Monday to discuss the new tax, seigniorage fee hike and other demands. The prices of M-sand, P-sand and jalli were hiked thrice in the past six months. M-sand, which cost Rs4,900 per unit in November, now costs Rs6,450. The price of P-sand has increased from Rs5,800 to Rs7,552 per unit. Similarly, the price of jalli has gone up from Rs3,900 to Rs5,523 per unit. These steep increases will directly impact the ongoing projects and contractors by escalating overall construction costs. He said they were planning to represent this issue to the govt and urge the state to regulate and control the price hike. Coimbatore Builders and Contractors Association president Ramyaa R Senthil said the price hike over the past year was abnormal. Instead of controlling it, the state govt has allowed the increase in building material prices. 

Co-working operator Incuspaze has rented 2.5 lakh square feet of office space in Chennai to provide managed workspaces to corporates. The upcoming centre has the capacity to accommodate more than 4,000 seats, the company said in a statement on Monday. Gurugram-based Incuspaze has taken on lease 2.5 lakh square feet of office space at standalone campus 'Olympia Crest', which is located in the heart of Chennai's IT corridor at OMR Zone 1. Gross leasing of office space hit a record in 2024 calendar year on high demand, especially from foreign companies looking to establish Global Capabilities Centres (GCCs) in India. Co-working operators take office space on lease from real estate companies and property owners and then further sub-lease the workspaces to corporate clients. After the COVID pandemic, the demand for office space in co-working centres has surged as corporates look for reduction in capital expenditure and also flexibility to expand or downsize their businesses. Established in 2016, Incuspaze has a presence in 50 locations across 18 cities with a total portfolio of 4 million (40 lakh) square feet.  In July last year, the company raised USD 8 million from investors, including India Inflection Opportunity Fund (IIOF), to expand its business.
 

The commercial real estate market of Chennai is expected to hit the 100 million square feet mark by 2026, propelled by high occupier demand, prudent investments, and infrastructure developments Over the last two years, the city has attracted USD 1.19 billion private equity flows underlining its strong status as an investment destination. All of these aspects are likely to push for the Grade-A office spaces, thereby ensuring that the city continues to be the country’s top business hub. A key factor behind this growth is the availability of young, skilled labour at competitive rates. “Chennai offers talented and young manpower at competitive rates, which attracts global companies to set up operations here,” says Karun Verma, senior executive director,  DLF Cyber City Developers Limited. With its young population and solid educational infrastructure, Chennai is a preferred destination for sectors like IT, BFSI, and life sciences. Micro-markets like Porur, Tharamani, and OMR are emerging as prime office locations, experiencing substantial demand. Chennai’s office market has remained resilient, with a 102 per cent increase in net absorption for Q4 2024, completing 1.1 million square feet. Rental growth has been competitive, with an 8-10 per cent year-on-year (YoY) increase in rental rates, reflecting strong investor confidence in the market. “Year-on-year growth of 8-10 per cent in rental rates reflects investor confidence in the market. 

The Tamil Nadu Urban Habitat Development Board (TNUHB) has imposed a fine of 15 lakh on a contractor for slow progress of reconstruction work at sites at Gandhi Nagar, Periyar Nagar, and Goyathoppu under the Pradhan Mantri Awas Yojana (Urban) – Affordable Housing in Partnership (PMAY-AHP) scheme. Each of these projects, involving the construction of tenements using pre-fabricated concrete technology, was awarded on a turnkey basis with a stipulated completion period of 18 months from the date of site handover. The contractor was expected to complete 75% of the work by now, as per the agreement. However, field inspections revealed delays across all locations. At the Gandhi Nagar site, only 44% of the work was completed. The Periyar Nagar project progressed even slower, with just 34% of the construction done. In Goyathoppu, work completion stands at 45%. In allcases, field officers reported that the production of precast concrete elements at the contractor's casting yard was slow. The consequences of these delays are significant. All three projects fall under vital reconstruction schemes by TNUHDB, and the intended beneficiaries already vacated their original homes in anticipation of timely completion. Many are now burdened with rental costs as they continue to wait for possession of their new homes,"  Recognising the social and financial impact on the displaced residents, TNUHDB has levied a fine of 5 lakh for each project, amounting to 15 lakh in total.  The contractor has been directed to immediately mobilise adequate manpower and materials to bring the projects back on track. Additionally, the firm has been asked to submit a detailed micro-level action plan before April 30, outlining specific measures to speed up the work. 
 

Home sales across India’s eight prime residential markets in the January-March period fell 19% over last year, as rising property prices and slowing growth forced buyers to exercise caution, according to a report by Proptiger.com, part of REA India. New home supply also dropped 10% in the first quarter of the calendar year, as developers adjusted expectations amid a price appreciation of the past couple of years, which made housing unaffordable for a large section of buyers in the world’s most populous country. The huge spike in prices had already started to show its adverse impact on sales. With a global trade war now bringing new uncertainty, it is only natural for buyers to adopt a cautious approach to investment, particularly in something so big as real estate,” said Dhruv Agarwala, Group Chief Executive Officer. Most urban Indians rely on housing loans to make a house purchase. Repo rate is the benchmark that determines the interest they would pay on this credit. A downward change in this rate is a certain measure to boost buyer confidence. According to the report, less than 100,000 residential units were sold in the January-March quarter, with most cities covered in the analysis showing a fall in numbers. While Bengaluru and Chennai bucked this trend, Hyderabad, MMR and Pune witnessed the sharpest sales drop. Signs of a market correction were also visible through a dip in new supply, with five of the eight cities showing an annual decline in launches. Pune, Hyderabad and Ahmedabadregistered the sharpest fall in numbers, the report showed. 
 

Nearly 20 premium shopping malls, comprising 123 lakh square feet of retail spaces, will become operational by 2026-end across eight major cities in the country to tap rising demand of retailers looking to expand business, according to Cushman & Wakefield. On Tuesday, real estate consultant Cushman & Wakefield released its report 'Premiumisation of India's Retail Sector - Upscaling, Upgrading and Evolving', at MAPIC India Summit here. The consultant noted that as many as 19 Grade A shopping malls covering 12.3 million (123 lakh) square feet of new retail space will become operational in 2025 and 2026 calendar years. These eight cities are-- Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Out of the 12.3 million square feet of new Grade A mall supply projected across 2025 and 2026, 8.6 million (86 lakh) square feet will be superior Grade (Grade A-plus), underscoring the sector's shift from scale to quality. The superior-grade malls typically owned and operated by reputed developers or institutional investors are characterized by their high occupancy rates (more than 85 per cent), upscale tenant mix, and service-rich environments. Saurabh Shatdal, Executive Managing Director, Capital Markets & Head, Retail India, Cushman & Wakefield, said, "India's retail landscape is evolving rapidly, and so are consumer aspirations. The rise of Superior Grade malls reflects a clear pivot from just scale to quality and experience. Today's consumers are seeking curated, design-led environments where the brand experience is as important as the product itself. Shatdal noted that categories like beauty, wellness, F&B, and athleisure, known for high engagement and trading density, are shaping this next phase of retail. India's total Grade A mall stock stood at 61.5 million (615 lakh) sq ft in 2024, with superior Grade malls already comprising 63 per cent (38.9 million sq ft) of the total. 
 

Metrowater will install one lakh smart water meters, integrated with a billing system, to monitor water usage in commercial buildings across city. In first phase, the meters will be installed for bulk consumers, including TNHB, and the readings will be sent to consumers' phones every month. An estimated 5 crore has been allocated for the initiative, and installation of these meters is expected to generate additional revenue for the department. Until now, Metrowater had installed mechanical meters with automated meter reading (AMR) in residential and commercial buildings. However, these meters show variation in readings and even register consumption when air passes through or when the water returns. Residential buildings were charged a flat rate of 80, with no proper accountability for both residential and commercial usage. To address this issue, the smart meters will soon be installed, targeting commercial and high-rise buildings in the first phase. Metrowater chief engineer O Parveez said, "Smart meters will accurately measure water consumption, leading to better revenue collection. At  present, we are supplying 1,100 MLD. We want to adopt a metering system similar to that of Tangedco. It will also help prevent water wastage and ensure accountability in water usage." The installation charges and tariff will be announced later, officials said. Installation of smart meters is also expected to raise awareness among consumers about efficient water usage. Of the 14 lakh consumers who pay tax, only 8 lakh pay water charges now. The board plans to increase the number of paying consumers, with charges applicable for buildings above 500 sqft. The tender will be floated in May, and the work order is expected to be issued within two months after that. Metrowater public relations officer M Vetrichelvan said the board already has a list of bulk consumers, and notices will be issued in advance.
 

 Private equity investments in Indian real estate declined 3 pc last fiscal year to USD 3.7 billion due to lower fund inflow in office buildings, according to Anarock. Real estate consultant Anarock's arm Anarock Capital on Monday released its data of private equity (PE) deals in Indian real estate. As per the data, the PE investments in real estate declined to USD 3.7 billion in 2024-25 from USD 3.8 billion in the preceding year. During the 2020-21 fiscal year, the PE inflow was USD 6.4 billion, but the investments fell in 2021-22 to USD 4.3 billion. It marginally improved in the 2022-23 fiscal year to USD 4.4 billion before decreasing in 2023-24. Shobhit Agarwal, MD & CEO, ANAROCK Capital, said, "PE investments have steadily declined over the past five years, dropping from USD 6.4 billion in FY21 to approximately USD 3.7 billion in FY25. This represents a 43 per cent decrease from FY21 levels, primarily driven by reduced foreign investor activity amid heightened global macroeconomic uncertainty and geopolitical volatility." As per the data, the share of foreign investors in total PE investments during the last fiscal year stood at 84 per cent while domestic 16 per cent. In assets class, office complexes saw a steep decline in investment to USD 806 million in FY25 from USD 2.2 billion in FY24. The PE investments in warehousing assets rose sharply, compensating for to decline in inflow in housing and office properties. The last fiscal year saw a significant deviation in funding structure, with hybrid deals surging to 42 per cent of total PE inflow. Equity and debt investments dropped to 37 per cent and 21 per cent, respectively. Commenting on the report, Binitha Dalal, Founder & Managing Partner, Mt K Kapital, said, "A marginal 3 per cent dip in PE inflows is more a sign of market recalibration than concern. Investors are becoming more selective, focusing on quality assets and structured opportunities that promise long-term value over short-term gains." "India's growth momentum and rising affluence have given momentum to real estate activity, thereby evincing interest from investors. 
 

Chennai's retail real estate market recorded a substantial 31 per cent year-on-year growth in leasing activity during the first quarter of 2025, totaling 0.17 million square feet, as reported by Cushman & Wakefield. This surge was predominantly driven by the fashion sector, which accounted for 37 per cent of the total leasing activity, marking a nearly fourfold increase compared to the same period last year. 

High Streets Dominate Leasing Activity

High street locations were the focal point of this growth, contributing over 90 per cent of the total leasing activity. The North-West submarket, including prominent areas like Anna Nagar and Perambur, led with a 38 per cent share, while the Off-CBD region, encompassing Arcot Road and Aminjikarai, followed closely at 37 per cent. 

Limited Mall Leasing Due to Supply Constraints

In contrast, mall leasing activity remained subdued, with only 10,000 square feet transacted during the quarter. This was primarily due to a limited supply of quality space, leading to a marginal decline in the mall vacancy rate by 14 basis points quarter-on-quarter to 14.13 per cent. Superior malls maintained tight vacancy levels of one to two per cent. 

Rental Appreciation in Key Retail Corridors

High-demand high street corridors experienced rental appreciation of three to four per cent quarter-on-quarter. Notable areas with increased rentals include Usman Road (North and South), Adyar Main Road, Purasawalkam High Road, Pondy Bazaar, Velachery, and East Coast Road (ECR). 

National Retail Leasing Trends

On a national level, Hyderabad led in leasing volume, contributing 34 per cent (0.8 million square feet) of the total activity, with a 106 per cent year-on-year growth. Mumbai followed with a 24 per cent share (0.58 million square feet), recording a 259 per cent year-on-year growth, driven by new high street locations and additional mall supply. Delhi NCR captured 17 per cent (0.41 million square feet) of the total leasing share, supported by strong demand in key submarkets and a 57 per cent year-on-year increase. 

CBI booked 21 people, six of their firms, and unknown public servants on charges of illegal mining of beach sand minerals in Tirunelveli, Kanyakumari, and Tuticorin districts from 1995 until 2015. S Vaikundarajan, mining baron and exporter of minerals, was named in three FIRs. He was the first accused as managing director of VV Minerals and the second and third accused as directors of two other sand mining firms. Others named in the FIRs include his sons Velmurugan and Subramanian, brother S Jagatheesan, and Jagatheesan's sons Muthurajan, Chenthilrajan, and Subburajan. The six firms booked were Transworld Garnet India Ltd; Indian Ocean Garnet Sands Company Ltd; Industrial Mineral India Pvt Ltd; Beach Minerals Company Ltd; VV Minerals; and another firm. Also booked were their directors, mining licence holders, and employees. According to the CBI, Vaikundarajan, through his VV Minerals, received 34 mining licences in all three districts and caused a loss of 3,581.11 crore to the state govt by mining beyond the permitted quantity. He was accused of mining minerals worth 911 crore after the state banned mining. As per another FIR, Transworld Garnet India Ltd obtained 16 mining licences 14 in Tirunelveli and two in Tuticorin. The firm was accused of causing a loss to the tune of 478.35 crore to the exchequer. Similarly, Beach Minerals Company, which obtained 10 mining licences, was accused of causing a loss of 921.70 crore. CBI booked them under several sections of IPC, Mines and Minerals (Development and Regulation) Act, and Atomic Energy Act and took up the investigation. 
 

To cut bureaucratic delays, the state has announced that building permits for residential structures with stilt + 2 floors can be obtained through self-certification. The initiative expands on the existing single-window system that allows immediate online approval for ground + 1 floor houses. To assist applicants, model building plans, including elevation and sectional drawings, will be released for fixed plot sizes. These designs will apply to plots up to 2,500 sqft with a built-up area of 3,500 sqft,specifically catering to the housing needs of low- and middle-income families. "It is a welcome move by the govt. But, the built-up area needs to be increased to 10,000 sqft, and the plot size should also be increased proportionately. This will help homebuyers get their houses in a shorter time, as they won't have to wait for approvals and can start construction immediately," said S Sridharan, vice-president, Credai National, South. Clearances for school buildings near water bodies will also be permitted, provided they maintain safety standards and have no openings on the water-facing side. Schools located along national or state highways can obtain approvals if a dedicated service road is developed by the management. The govt is also focusing on digital governance with the development of a mobile app under the single-window system. This app will offer technical support and streamline the application process. To ensure these reforms are effectively implemented, a new comprehensive planning unit will be created. Meanwhile, the TN housing board announced land development projects in Tiruvallur and Salem districts and a 65 crore investment in rental housing units for govt officials in Thalavadi, Erode.
 

Home loan borrowers are having an excellent year 2025, which started with a 25 basis point reduction in the repo rate by the RBI. Now, the central bank has announced another 25 basis point rate cut. This means that home loan borrowers, especially the ones with floating-rate home loans, will see their EMIs fall substantially in the coming days as the lenders start passing on the benefit of this rate cut. With the latest cut, the repo rate now stands at 6%. Further, the RBI Governor announced the change in the monetary policy stance from neutral to accommodative. Due to change in the stance, the home loan borrowers can see more repo rate cut in the future and consequently, lower interest rate on their home loan. Adhil Shetty, CEO of Bankbazaar.com, says, "The Reserve Bank of India has reduced the repo rate by 25 basis points, bringing it down to 6%, as part of its ongoing efforts to stimulate consumption and accelerate economic growth. However, the impact of this rate cut will depend significantly on the speed and efficiency with which commercial banks transmit the benefits to borrowers. A faster and more effective rate transmission is critical to achieving the intended outcomes." "In its latest review, the Monetary Policy Committee not only reduced the repo rate by 25 basis points but also shifted its stance from 'neutral' to 'accommodative' — a clear signal that, going forward, the MPC is now considering only two possibilities: status quo or further rate cuts," says Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited. We tell you how this rate cut will impact your EMIs, how much future rate cut you can expect this year, and how you can best use the current interest rate scenario to manage your home loan. 

How much will you save on your home loan EMIs due to two repo rate cuts?

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd, explains how much home loan borrowers will save on their home loan EMIs due to the 50 basis points repo rate cuts. For a 20-year home loan, assuming the original interest rate was 9%, a 0.5% (50 bps) reduction to 8.5% will bring significant EMI savings:

For example, a borrower with a loan amount of Rs 50 lakh will see a monthly EMI saving of Rs 1,960. However, with the 20-year tenure of a home loan, the rate cut will result in total savings of Rs 4.70 lakh.

RBI MPC Meeting: Will there be a rate cut in future?

The central bank is mandated to focus on inflation targeting in a band of 4% with +/-2%, i.e., between 2% and 6%. The State Bank of India's Economic Research Department, in its Ecowrap report, said that India's CPI Inflation fell to a 7-month low of 3.6% in February 2025 due to a substantial decline in food and beverage prices. The report also indicated that inflation for FY26 is projected to be between 4.0 and 4.2%, while core inflation fell to a 7-month low of 3.6% in February 2025 due to a substantial decline in food and beverage prices. The report also indicated that inflation for FY26 is projected to be between 4.0 and 4.2%, while core inflation may range between 4.2 and 4.4%. 

The central bank may implement successive rate cuts in April and August 2025 with an overall expected cumulative rate cut of atleast 75 basis points. It is important to note that the RBI cut the repo rate by 25 basis points in the February policy meeting, bringing it from 6.50% to 6.25%. RBI Governor Sanjay Malhotra, in his last statement while delivering the rate cut, said, "Inflation has declined. Supported by a favourable outlook on food and continuing transmission of past monetary policy actions, it is expected to further moderate in 2025-26, gradually aligning with the target." 

Home loan borrowers: What to do now

For home loan borrowers, the reduction in their home loan EMIs will depend on how quickly the RBI cuts the rate and how quickly your bank/lender passes on the benefit of the rate cut to you. Home loan rates are about to go sub-eight again with today’s 25 bps rate cut. The lowest rates we’re currently seeing are between 8.10 and 8.35. 

If your home loan is linked to EBLR: The future rate cuts by the RBI will decide how quickly the EMIs will come down in the future for the borrowers. The RBI circular on external benchmarks for lending rates mandates that interest rates shall be reset once in three months. Hence, if your bank still has not communicated about the last rate cut of February 2025 then it should be communicated by May 2025. 

If loan is linked to other lending regimes: Prior to October 2019, the banks were offering home loans, auto loans, etc, linked to other lending regimes such as MCLR (Marginal cost of lending rate), base rate or BPLR. If your current loan is linked to one such lending regime, then it is important for you to switch to an EBLR-based lending regime. There will be some administrative costs applicable, however, the interest savings can be huge under EBLR due to lower interest rates.