Chennai, the capital of Tamil Nadu, has steadily emerged as one of India’s most reliable and promising real estate markets. Known for its strong economic base, stable governance, and expanding infrastructure, the city offers a balanced mix of residential, commercial, and mixed-use developments. Over the past decade, Chennai has transformed from a traditional metro into a dynamic investment hub, attracting both domestic and NRI investors. One of the primary reasons behind Chennai’s real estate growth is its diversified economy. The city is a major center for IT and IT-enabled services, automobile manufacturing, healthcare, education, and port-based industries. Key employment corridors such as OMR (Old Mahabalipuram Road), GST Road, and Ambattur Industrial Estate continue to generate consistent job opportunities. As employment grows, housing demand naturally increases—especially in well-connected residential neighborhoods close to these work hubs. Infrastructure development has played a crucial role in driving property appreciation. Projects such as the Chennai Metro Rail expansion, Peripheral Ring Road, flyovers, improved road connectivity, and airport modernization have significantly enhanced accessibility across the city. Improved connectivity often leads to higher property demand and price appreciation, making early investment in developing areas particularly rewarding. Property prices in several micro-markets have shown steady and sustainable growth rather than volatile spikes, which makes Chennai attractive for long-term investors. Areas like Anna Nagar remain premium residential zones due to established social infrastructure, schools, hospitals, and retail centers. Sholinganallur, located along the IT corridor, continues to attract working professionals seeking modern apartments with rental potential. Medavakkam has emerged as an affordable yet rapidly developing residential hub, benefiting from its connectivity to OMR and Velachery. Meanwhile, Perambur is witnessing renewed interest due to infrastructure upgrades and improved rail and road access. Chennai’s real estate market also caters to diverse investment goals. Investors looking for rental income can focus on IT corridor localities where tenant demand remains strong. Those seeking long-term capital appreciation may consider upcoming areas benefiting from metro expansion and new road projects. End-users looking for stable communities with established amenities can explore mature neighborhoods with strong civic infrastructure. Overall, Chennai offers a balanced investment environment—moderate pricing compared to cities like Mumbai or Bengaluru, consistent appreciation trends, and strong rental demand in key zones. Whether you are a first-time homebuyer, a rental income seeker, or a long-term investor, Chennai’s evolving real estate landscape presents a wide range of opportunities suited to different budgets and investment strategies.

The Budget 2026 has introduced an important amendment to Section 22(2) of the Income Tax Act, 2025, clarifying the treatment of prior-period interest (interest accruing before the possession of a property) as part of the total deduction for interest on home loans. 

Key Changes:

1. Prior-Period Interest Inclusion:
   The amendment specifically ensures that prior-period interest, which was previously unclear in the context of tax deductions, will now be included in the total interest deduction available for self-occupied properties. This means that the tax benefit will be extended to interest paid during the pre-possession period, aligning with earlier tax provisions.

2. Tax Deduction Limit:
   The maximum deduction available for interest on loans for self-occupied properties remains capped at ?2 lakh annually. This deduction applies only under the old tax regime.

3. Elimination of Ambiguity:
   Prior to this amendment, Section 22(2) of the Income Tax Act, 2025, did not clearly specify whether the ?2 lakh limit for interest deductions included interest from the pre-possession period. This ambiguity had created confusion and deviated from the established norms under the previous tax law, which clearly allowed deductions for both current-year interest and pre-possession interest.

4. Alignment with Previous Law:
   The amendment ensures that the current law aligns with the provisions of the Income Tax Act, 1961, where the ?2 lakh cap explicitly included both the interest for the current year and any pre-possession interest, which was allowed to be claimed in five equal installments.

5. Objective of the Change:
   The primary goal of this correction is to restore the clarity and consistency in the tax treatment of home loan interest, particularly in relation to the interest paid before the property is handed over. This change ensures that taxpayers benefit from the same tax treatment that was available under the Income Tax Act, 1961, without any unintended discrepancies.Section 22(2) Overview:

6. Under Section 22 of the Income Tax Act, deductions are allowed in the case of income from house property. Section 22(2) specifically states that the aggregate deduction for self-occupied properties, where the property is purchased or constructed with borrowed capital, is limited to ?2 lakh. With this amendment, the aggregate deduction for home loan interest now includes prior-period interest payable as well.

Countering a charge by the Union railway ministry that land acquisition for railway projects was slow in Tamil Nadu, the state government blamed the Union government for the delay.

In a letter to the Prime Minister on Sunday, the state’s chief minister said the railway authorities had not sanctioned funds for the acquisition of 931 hectares out of 2,500 hectares for which administrative approval had already been granted to implement various railway projects.

Timely payment of compensation to landowners is an essential prerequisite for completing the land acquisition process, the state government said. For an extent of 296 hectares meant for two projects, it added that the revised land plan schedule (LPS) was received only recently from the railway authorities. Administrative approval for land acquisition for these two projects would be issued shortly.

The state government stated that 94% of land acquisition had been completed for 19 major ongoing railway projects. Out of 1,273 hectares required for these projects, acquisition was completed for 1,198 hectares, which had already been handed over to the railways.

The chief minister urged the Prime Minister to ensure that required funds for sanctioned projects are released without delay and to reconsider and restart important projects that have been kept in abeyance by the railway ministry. These include the Tuticorin–Madurai road gauge line and the Tindivanam–Tiruvannamalai broad gauge line projects.

The state government also requested consideration for sanctioning additional new railway projects commensurate with Tamil Nadu’s economic stature and development needs.

This pronounced regional disparity underscores a significant shift in India's residential property dynamics, moving away from national momentum towards localized economic fundamentals. Chennai's exceptional performance indicates a market anchored by stable end-user participation, less susceptible to the hesitation observed in higher-priced Western markets. Conversely, the downturn in Mumbai and Pune highlights the impact of affordability constraints and evolving buyer selectivity. The year's policy adjustments, notably the Reserve Bank of India's repo rate cuts culminating in a 5.25% rate by December 2025 and a reduction in GST on cement, are poised to recalibrate market conditions for the upcoming year. Chennai's housing market defied the national trend in 2025, reporting a remarkable 55% year-over-year increase in sales volume, reaching 24,892 units. This surge was attributed to stable, end-user-driven demand and a structurally sound local economy, which insulated it from broader market volatilities. In stark contrast, the Mumbai Metropolitan Region (MMR) saw sales plummet by 26.4%, while Pune experienced a 28.5% decline, contributing to an approximate 24% drop in overall Western market sales. This divergence suggests that factors like regional economic health and buyer confidence are increasingly dictating market performance over national trends. Despite the national sales volume drop of approximately 12% in 2025, the overall value of real estate transactions remained robust, driven by the premium housing segment, which saw resilient demand and price appreciation. PropTiger data indicates that while Chennai's prices remained flat in 2025, significant price corrections occurred in MMR (4% decline) and Pune (1% decline). Two key policy interventions are expected to shape the market in 2026. The Reserve Bank of India (RBI) enacted a series of repo rate cuts throughout 2025, bringing the rate down to 5.25% by December 2025. This move is anticipated to ease home loan interest rates, potentially boosting affordability. Simultaneously, the GST Council reduced the tax on cement from 28% to 18% effective September 2025. This reduction in developer input costs, coupled with savings on other materials like tiles and marble, is projected to offer tangible cost relief and enhance housing affordability. Furthermore, developers demonstrated considerable discipline in managing inventory, aligning new supply with absorption rates to prevent price spirals, a strategy that contributed to the resilience of prices despite moderating sales volumes. While overall residential sales volumes in India moderated in 2025. 

A local corporation has received its largest-ever fund allocation of 49 crore to re-lay over 400 roads. This initiative follows extensive damage caused by underground sewage and drinking water supply work, which had negatively impacted road conditions across the area. Out of a total of 780 roads, 487 will be re-laid at an estimated cost of 41.8 crore. The reconstruction efforts are focused on interior roads, particularly those providing access to schools, bus stops, and hospitals. Additionally, a sum of 7.8 crore has been earmarked for the renovation of eight major roads that had long been a concern for residents. These roads include Kamarajar Nagar Road and Pachaiamman Koil Road, both of which had been longstanding demands from the community. This road rehabilitation plan is the largest allocation for infrastructure works in the area to date. To ensure quality and longevity, the corporation has mandated the submission of inspection reports before any roadwork commences. Contractors are required to carry out the re-laying process under the direct supervision of officials. Additionally, the corporation plans to conduct sample tests on materials used for road construction, as the previous shortage of technical staff had been a concern. A thorough inspection of roads will be conducted before contractors are paid. Residents have voiced concerns over the poor condition of roads, citing inadequate monitoring by authorities during previous road-laying works as a significant issue. One of the main complaints was that underground infrastructure projects, such as sewage and water supply connections, were often completed after roads had already been re-laid, leading to unnecessary damage. This practice, according to some community leaders, has been a waste of taxpayer money, as roads were dug up again shortly after reconstruction.

Home loan demand across urban and rural India is set to receive a renewed boost, with the Union Budget sharply increasing subsidy allocations for key housing schemes. The outlay for the urban housing programme has been more than doubled to Rs 18,625 crore for 2026–27 from Rs 7,500 crore, while the second phase of the scheme has been scaled up tenfold to Rs 3,000 crore from Rs 300 crore. The programme targets the construction of 2.24 crore urban homes, of which 1.22 crore had been sanctioned as of early January. Subsidies for rural housing have also been raised by over 50% to Rs 54,917 crore from Rs 32,500 crore. The rural scheme aims to build 4.95 crore homes, with 3.97 crore beneficiaries already registered as of late January. The higher budgetary allocations point to a renewed policy focus on boosting rural demand and farm-linked incomes through high-impact welfare programmes. Housing finance firms said the increased subsidies are expected to directly improve affordability and credit uptake, particularly in the affordable housing segment. The enhanced allocations significantly improve affordability for first-time homebuyers and lower-income households, expanding the potential borrower base and improving loan repayment capacity. This is expected to support asset quality and create a more sustainable demand environment, especially in Tier-II and Tier-III markets. The housing schemes are also expected to generate employment during the construction phase and account for nearly 10% of overall cement consumption in the country. Housing finance companies operating in the affordable housing segment across smaller cities are likely to continue seeing steady demand, with scheme implementation expected to gather momentum in FY27 following the resolution of earlier operational issues. Under the second phase of the urban housing scheme, the maximum eligible loan amount has been capped at Rs 25 lakh. Beneficiaries will receive the subsidy in five annual instalments totalling Rs 1.80 lakh, replacing the earlier one-time subsidy of Rs 2.67 lakh. The subsidy amount is uniform across economically weaker, lower-income and middle-income groups, with annual income caps of Rs 3 lakh, Rs 6 lakh and Rs 9 lakh respectively.

The Competition Commission of India (CCI) has approved the acquisition of a 10.04% shareholding in a housing finance company by a special-purpose vehicle incorporated in an international financial centre. The proposed transaction involves the SPV acquiring the stake on a fully diluted basis from an existing shareholder, as per the regulator’s approval order. Separately, an open offer for equity shares of the housing finance company was launched under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, by the acquirer along with certain affiliated investment entities acting in concert. According to disclosures made to stock exchanges, no equity shares were tendered in the open offer as of February 3, 2026, and no shares were credited to the designated escrow demat account maintained for the offer.

The new year has begun on a strong footing for India’s electric vehicle (EV) industry, with total battery-electric vehicle registrations crossing the 2 lakh mark in January. Notably, registrations have remained above this level for the fourth consecutive month, underscoring sustained demand despite reduced GST rates on internal combustion engine (ICE) vehicles since October 2025. Total registrations of battery-powered vehicles across all segments stood at 2.18 lakh units in January, marking a significant increase over 1.71 lakh units recorded in January 2025 and higher than the 2.03 lakh units registered in December 2025. Improved availability of key components such as magnets, along with better production stability, supported higher volumes during the month. The electric two-wheeler (E2W) segment was a major contributor to overall growth, with registrations reaching approximately 1.22 lakh units in January. This represented the second-highest monthly tally in the past 12 months, compared with about 98,000 units in December 2025 and 98,426 units in January 2025. The segment saw strong momentum, with the leading player widening its lead over competitors, while several other manufacturers also posted healthy volumes. Electric passenger vehicle (PV) registrations, including electric cars and SUVs, continued to expand steadily. Total registrations in this segment reached 18,101 units in January 2026, up from 15,685 units in December 2025 and 11,895 units in January 2025. The segment leader maintained a clear advantage, while the second- and third-largest players reported solid growth. Other manufacturers remained in the sub-1,000-unit range, indicating that market concentration remains high, though participation is gradually broadening. The electric three-wheeler segment also showed year-on-year improvement, with registrations rising to 75,764 units in January, compared with 59,930 units in January 2025. However, volumes moderated on a month-on-month basis, falling from 88,277 units recorded in December 2025, reflecting some seasonal softening after the year-end peak. Overall, the January performance highlights continued resilience in India’s EV market, supported by improving supply conditions, stable policy support, and growing consumer acceptance across vehicle segments, even amid increased competitive pressure from conventional ICE vehicles.

Residents of a suburban neighbourhood staged a demonstration on Saturday along a major arterial road, opposing a planning authority’s decision to halt building permits within a 1-km radius of a nearby marshland. Resident welfare groups said the restriction had severely impacted owners of approved plots and legally registered lands across several localities along a key IT corridor.

More than 200 residents participated in the protest, urging the state government to review the circular and protect the rights of those who had purchased approved housing sites. Protesters demanded that authorities focus on removing encroachments within the marshland instead of imposing restrictions on already approved residential areas.

According to resident representatives, nearly one lakh houses have been affected by the circular. Many homeowners said housing loan applications that were under process had been rejected, and expressed concern that future permissions for reconstruction or redevelopment could also be denied.

Residents pointed out that the area is rapidly developing and warned that such restrictions would disrupt ongoing and future development projects. They added that the protest was aimed at seeking clarity, relief measures, and a long-term policy solution for affected property owners.

An elected representative from the area met the protesters and assured them that the issue would be taken up with the government.

Some of the city’s most recognisable corporate entities figure in the Greater Chennai Corporation’s latest list of the top 100 property tax defaulters, with unpaid dues adding up to ?33.68 crore. Many of these premises are located along major commercial corridors across the city. According to the list released for the second half of 2025–26, several large properties linked to a prominent recreational institution also appear on the list, together accounting for more than ?5 crore in unpaid taxes across multiple holdings. The largest defaulter owes ?2.42 crore in property tax for a commercial premises, while two other major defaulters owe ?1.74 crore and ?1.64 crore respectively for properties located in high-value business districts. The defaulters’ list spans multiple sectors, including telecom, retail, real estate, and media. A number of individual property owners have also defaulted, with arrears ranging from ?10 lakh to ?60 lakh. Civic officials said the decision to make the list public was aimed at increasing transparency and exerting pressure on defaulters to clear their dues. Property tax collections of around ?2,200 crore annually form a major source of revenue for essential services such as roads, stormwater drains, and conservancy work, and persistent non-payment adversely affects service delivery, officials said.  senior revenue official stated that fresh notices would be issued to defaulters and that buildings would be locked and sealed after 14 days if dues were not cleared. Some defaulters have approached the courts over reassessment, the official added. Six years ago, the civic body launched a GIS-based mapping project to reassess around three lakh buildings with deviations, aiming to generate an additional ?400 crore in revenue and raise the annual tax target to ?2,600 crore. However, only about 60,000 buildings have been assessed so far, and most are yet to be levied revised rates. Educational institutions were identified as major defaulters in cases involving building deviations. Revenue officials said assessments require physical inspections to measure structures and raise bills. It was also suggested that power supply connections be disconnected for persistent property tax defaulters.

The Madras High Court has banned any construction or renovation work in ancient temples across Tamil Nadu. The court expressed dissatisfaction with the state government for delaying the formation of the Tamil Nadu Heritage Commission.

A special bench passed an interim order on Thursday while hearing a petition that sought to stop the construction of a commercial complex near an ancient temple in the state. Earlier, the court had given the state government one month to decide on constituting the Heritage Commission.

During the latest hearing, the government informed the court that rules for the commission had already been framed and that a selection committee had been formed to choose the chairperson. Applications had also been invited through an official notification.

The court ruled that until the entire process of forming the Heritage Commission is completed, no construction or renovation activities should be carried out in ancient temples. The case has been adjourned to March 5.

The proposed knowledge city will house a knowledge tower that will offer plug-and-play facilities with easily accessible classrooms, auditoriums, and research hubs for global universities, a senior official said while speaking at the inauguration of a two-day global education summit on Wednesday. The knowledge city is spread over more than 800 acres. It envisions a knowledge-driven ecosystem with research and development hubs, incubation centres, industry platforms, and global universities. These institutions will not only coexist but also accelerate ideas from the lab to the market. The convention has immense potential as global university partnerships are being forged and large campuses are planned. In the days ahead, economic development is no longer about capital investment alone. It is a knowledge-driven economy where talent, research, technology, and innovation will contribute to national growth. The speaker further highlighted initiatives such as university research parks, a space manufacturing ecosystem, and collaborative industry platforms. The model represents a shift where universities do not operate in isolation but as part of a living ecosystem with strong research and industry collaboration. The summit is expected to initiate discussions on global academic collaborations, including joint degrees, dual degrees, and research and innovation partnerships in frontier areas. Another international academic leader noted that universities across Asia are rising with unprecedented vision, skill, and scale. However, it was also observed that institutions in another region will continue to attract global talent due to the strength of their research-oriented universities, despite periodic challenges.