The average interest rate charged on newly issued rupee-denominated loans across the banking system increased toward the end of November 2025. The rate rose by 10 basis points, moving from 8.61% in October to 8.71% in November, indicating a gradual tightening of borrowing conditions for new loans. This increase was mainly driven by public sector banks, which raised their lending rates more aggressively during the month. Their average rate on new loans climbed by 16 basis points, reaching 8.05% by the end of November. This suggests that these banks adjusted their pricing in response to higher funding costs, policy transmission, or efforts to protect profit margins. In contrast, private sector banks kept their lending rates unchanged during the same period. Their average rate remained relatively high at 9.44%, indicating that they had already priced in earlier cost pressures or chose to maintain stable rates to remain competitive and support loan demand. Meanwhile, overseas banks operating in the domestic market moved in the opposite direction. Their average lending rate declined by 6 basis points, falling from 8.24% in October to 8.18% in November. This reduction may reflect differences in funding structures, risk appetite, or a strategic move to attract borrowers in a competitive lending environment. Overall, the data shows that the rise in system-wide lending rates during November was uneven across bank categories, with public sector banks being the primary contributors to the increase, private banks holding rates steady, and overseas banks slightly easing borrowing costs. This mixed trend highlights differing strategies and cost conditions within the banking system, even as the general direction of lending rates edged upward.

Encroachments have turned the main road leading to the VGP layout, a residential locality in Uthandi, into a congested stretch, especially on weekends. Makeshift eateries, coffee shops, and other commercial outlets operating along the road and adjoining service lane are responsible for the situation.

Following repeated complaints from residents, a survey of the land and shops was conducted last week by local revenue authorities. Most of the shops were found to have illegally extended onto the roads, blocking footpaths. The survey work is nearing completion, and the report is expected to be submitted to the civic body shortly.

A visit to the area revealed banners erected dangerously close to the roadway, with footpaths completely taken over. Some eateries had placed chairs for customers outside their premises, encroaching upon road space near the service lane.

Residents stated that a portion of the encroached land belongs to a road development agency. They also pointed out that illegal extensions force visitors to park vehicles on the roads, further worsening traffic congestion.

Civic authorities have stated that action will be taken after reviewing the survey report. The nature of the action will depend on the severity of the violations, with minor encroachments such as banners likely to be addressed through removal after discussions.

As India entered 2026, the real estate sector is positioned for measured yet sustainable growth across all major segments, industry experts said on Friday. Strong fundamentals, expanding premium housing demand, and adaptive retail and logistics ecosystems are expected to continue attracting both domestic and international capital. While 2025 presented several macroeconomic and geopolitical challenges, 2026 is anticipated to be a year of recalibration and renewed economic momentum. This outlook is supported by India’s strong GDP growth of 8.2 per cent in Q2 FY26, recorded despite global uncertainties and shifting trade dynamics. With this growth rate, the country remains firmly on track to become the world’s third-largest economy by 2030, with an estimated GDP of $7.3 trillion. To reinforce economic development, the government implemented a mix of fiscal and monetary measures. Fiscal initiatives included the rationalisation of GST rates and revisions in income tax slabs. On the monetary front, the central bank reduced the repo rate to 5.25 per cent and maintained a neutral policy stance, a move expected to support economic activity in 2026. Overall, the year is poised to witness holistic sectoral growth, strengthened real estate activity, and improved investor sentiment. The office market is projected to maintain its upward trajectory in 2026, with gross absorption expected to reach 75–80 million square feet, driven largely by sustained expansion from global capability centres. The IT–ITeS and BFSI sectors are expected to remain key contributors. Flexible workspace operators are also likely to consolidate their presence as occupiers prioritise agility and hybrid workplace models. Leasing activity is expected to be led by Bengaluru, Chennai, and Hyderabad, with Mumbai and Pune likely to record an increased share. The year 2025 has been described as a landmark period for India’s real estate sector, marked by significant policy reforms, robust demand across asset classes, and a renewed focus on sustainable urbanisation. Looking ahead, Tier-II and Tier-III cities are expected to play a larger role in the sector’s growth in 2026, supported by improved connectivity, rising employment opportunities, and emerging industrial corridors. The outlook for fiscal 2027 is also optimistic, with demand recovery driven by rising incomes, lower interest rates, and continued infrastructure development. Commercial real estate is projected to sustain its growth momentum, with demand expected to rise by 5–7 per cent and supply by 9–11 per cent, supported by strong leasing activity from global capability centres, flexible workspace operators, and the IT/ITeS and BFSI sectors.

In a New Year bonanza for property owners, the Tambaram City Municipal Corporation (TCMC) has reduced the charges for name changes in property tax records and introduced a uniform fee structure effective from January. Previously, charges were calculated based on the market value of the property, often leading to residents paying between ?15,000 and ?40,000, depending on the property size and value.

Now, a fixed fee of ?500 will be applied for residential properties, while non-residential or commercial properties will incur a charge of ?1,000. This new policy mirrors the Greater Chennai Corporation’s (GCC) system, which charges ?500 for property name transfers, and is expected to significantly lower costs for those buying property within the corporation limits.

The revision follows a government order and is in line with the revised Tamil Nadu Urban Local Bodies rules, which standardize the property tax name transfer fees across the state. This uniform fee structure is set to be implemented statewide starting in January.

The move has been welcomed by local residents, who had previously faced high fees based on property values. With the new fixed-rate system, property owners can expect more predictable and affordable costs for name transfers.

 Registration of residential properties declined 5 per cent to 5.45 lakh units till December 25 this year across nine cities, while the total transaction value rose 11 per cent to Rs 4.46 lakh crore, according to industry data. The data covers property registrations across major urban markets and includes transactions from both primary and secondary (resale) segments. In 2025, registered residential transactions across nine key residential markets declined 5 per cent year-on-year, even as total sales value increased by over 11 per cent during the same period, the report stated. During 2024, the number of registrations stood at 5.77 lakh units with a total value of Rs 4.03 lakh crore. The report attributed the rise in value to growing participation from high-income buyers, with premium and luxury housing contributing a larger share, particularly in major metropolitan regions.vWhile overall demand remains structurally resilient, incremental growth in the luxury segment is expected to moderate in 2026, indicating a phase of stabilisation rather than a slowdown.vLooking ahead, the housing market is expected to remain well positioned for sustainable progress in 2026, supported by disciplined supply pipelines, a more mature buyer base, and a gradual rebalancing of demand towards the mid-market segment.vIndustry participants noted that homebuyers are increasingly showing a strong preference for newly launched residential projects.

The city's residential real estate market is projected to continue its steady recovery in 2025, with home sales expected to surpass 15,000 units, marking an 18% increase over 2024, despite ongoing macroeconomic uncertainties. In 2024, approximately 12,942 units were sold. Price trends have remained stable, further solidifying the city’s reputation as a market driven by end-user demand, which is less susceptible to speculative fluctuations seen in other major cities. Industry data reveals that nearly 26,500 housing units were launched across approximately 250 projects by October 2025, with total launches expected to be nearly 20% higher than in 2024. The report highlights that sales momentum has remained strong, especially in the southern and western parts of the city, where infrastructure improvements and enhanced transportation connectivity are influencing buyer preferences. Key demand corridors include areas along Old Mahabalipuram Road (OMR), GST Road, Porur-Poonamallee Road, and Radial Road, all benefiting from proximity to employment hubs and expanding metro access. Particularly in the western suburbs, residential interest has increased, driven by developments like the Kuthambakkam bus terminus and the ongoing progress of Metro Rail's Corrido. Looking ahead, the southern and western regions are expected to remain the city's primary residential growth drivers in 2026. Additionally, there is potential for redevelopment-driven growth in central and northern parts of the city, provided there is more regulatory clarity. Clearer guidelines under local housing laws could help revive stalled redevelopment projects and attract more buyers to older neighborhoods.

India’s real estate sector faced a challenging year in 2025, disappointing most developers as housing sales weakened across nearly all major markets. Rising property prices, layoffs in the IT sector, geopolitical uncertainties, tariff-related tensions, and broader economic instability weighed heavily on buyer sentiment. As a result, the sector recorded a noticeable decline in residential sales during the year. Housing sales across India’s top seven cities fell by 14% in 2025, with approximately 3,95,625 units sold, compared to 4,59,645 units in 2024. This marked a significant slowdown after several years of strong post-pandemic recovery. Among these markets, the Mumbai Metropolitan Region recorded the highest number of housing sales at around 1,27,875 units, though this represented an 18% year-on-year decline. Pune followed with approximately 65,135 units sold, reflecting a sharper 20% annual drop. Together, these two western markets accounted for nearly 49% of total residential sales across the top seven cities in 2025, underscoring their continued dominance despite declining volumes. Year-on-year sales declined in six of the seven major cities, with only Chennai registering growth, where housing sales rose by 15%. Other cities saw steep contractions, including Hyderabad with a 23% decline, Pune with a 20% decline, and the Mumbai Metropolitan Region with an 18% decline. On the supply side, unsold housing inventory increased by 4% by the end of 2025, largely due to subdued demand combined with fresh project launches during the year. Currently, about 5.77 lakh unsold units remain available in the primary residential market across the top seven cities. Bengaluru stood out, recording a 23% increase in unsold inventory, indicating slower absorption relative to new supply additions. The year was marked by widespread disruptions, including geopolitical tensions, workforce reductions in the IT sector, trade-related uncertainties, and macroeconomic pressures. Sales volumes across major cities largely stabilized at around 4 lakh units, even as the overall value of housing sales continued to rise. A notable trend in 2025 was the increasing concentration of new supply in higher price segments. Over 21% of new residential launches during the year were priced above ?2.5 crore. This shift toward premium and luxury housing reflected developers’ focus on higher-margin projects amid rising land and construction costs. Residential price growth moderated in 2025. After recording double-digit annual increases in previous years, average price appreciation slowed to single digits across most cities. Collectively, residential prices in the top seven cities rose by 8% year-on-year. Only the National Capital Region recorded double-digit price growth at 23%, driven largely by a greater share of high-value housing supply. Other major cities saw single-digit price appreciation ranging from 4% to 9% in 2025, compared to 13% to 27% growth in 2024. In the National Capital Region, of the 61,775 new housing units launched during the year, more than 55% were priced above ?2.5 crore, reinforcing the shift toward luxury housing. Despite lower sales volumes, the overall value of residential transactions increased, supported by higher prices and sustained demand for premium homes. The total sales value of housing units rose by 6% year-on-year, increasing from ?5.68 lakh crore in 2024 to over ?6 lakh crore in 2025. Overall, while 2025 proved difficult for volume-driven growth in India’s housing market, the sector demonstrated resilience in terms of value, premium housing demand, and selective regional performance, with Chennai standing out as the sole major market to record positive sales growth during the year.

The promoter of a housing finance company currently undergoing bankruptcy proceedings has made a revised offer to repay its dues. This development comes just days after a small finance bank emerged as the winning bidder at a challenge auction for the stressed entity. The promoter’s revised proposal includes an upfront payment of ?554 crore, with the remaining 60% of the admitted dues to be cleared over a period of 28 months, according to people familiar with the matter. The upfront payment includes ?360 crore of cash already available on the company’s books. The insolvency administrator did not respond to emailed queries. The administrator has admitted 60 claims aggregating ?1,363 crore. Last week, after 13 rounds of bidding, the successful bidder submitted the highest offer of ?977.5 crore, as reported earlier. The settlement proposal also involves a ?225 crore equity infusion by a Surat-based diversified group, which will acquire a 60% stake in the housing finance company. The group has interests across real estate, exports, renewable energy, and financial services, according to sources. The settlement offer has been submitted under Section 12A of the Insolvency and Bankruptcy Code (IBC), which allows for the withdrawal of insolvency proceedings if at least 90% of the committee of creditors (CoC) approves the proposal, typically through full repayment of lender dues. Under IBC rules, a promoter-led settlement can be approved only if the relevant regulator files a withdrawal petition before the bankruptcy court. The proposal also includes retaining the current administrator as chairman of the board and appointing auditors in consultation with the committee of creditors. Earlier, the promoter had proposed an upfront payment of 25%, with the balance to be paid over 26 months. That proposal was rejected by the CoC. The company’s financial stress came to light after auditors flagged discrepancies in its financial statements, leading to a regulatory probe.

Homebuyers registering first-sale apartments and villas in Tamil Nadu will receive significant financial relief following a new order issued by the state government. The government has permitted stamp duty and registration fees already paid on construction agreements to be set off against the total value of land and building at the time of registering the final sale deed. Under this order, buyers registering composite sale deeds—which include both the undivided share of land and the constructed building—for the first sale of apartments, flats, villas, row houses, or villaments will be eligible for the benefit. The set-off applies where the buyer had previously paid stamp duty and registration fees on a construction agreement for the same superstructure. The relief is applicable to composite sale deeds registered on or after December 1, 2023, provided the related construction agreement was registered on or before November 30, 2023. This ensures that buyers are not required to pay stamp duty and registration fees twice for the same property component. The move follows the state’s earlier decision to allow the registration of composite sale deeds in compliance with the Real Estate (Regulation and Development) Act, 2016. While that policy helped bring clarity and transparency to first-sale property registrations, it also led to concerns among buyers who had already paid stamp duty and registration charges on separate construction agreements prior to the change. These buyers faced the prospect of double payment when registering the final sale deed. According to officials from the registration department, the newly approved mechanism addresses this issue by enabling an adjustment of previously paid charges. The government approved the set-off for stamp duty under the Indian Stamp Act, 1899, and for registration fees under the Registration Act, 1908. The inspector general of registration has instructed all registering officers, district registrars, and senior registration officials to implement the order with immediate effect. Authorities have also been directed to ensure uniform application of the policy across all districts in the state. However, real estate developers have expressed mixed reactions, stating that the relief has come later than expected. They pointed out that many homebuyers who paid stamp duty and registration fees on construction agreements several years ago may have already completed their property registrations due to loan repayment obligations. As a result, those buyers may not be able to benefit from the new provision. Developers have argued that the measure should have been introduced at the time the composite value registration system was first implemented. Despite these concerns, the order is expected to benefit a large number of homebuyers by reducing the overall cost of first-sale property registrations and preventing duplication of statutory charges going forward.

Walking along MC Road from the Cemetery Junction in Washermanpet has become a daily struggle for pedestrians. Two-wheelers encroaching on footpaths, constant honking, and dug-up stretches force people, including children, to navigate open holes. Local residents say the inconvenience stems from a Greater Chennai Corporation pedestrian plaza project that has been stalled for the past three years.

Monegar Choultry Road (MC Road) is a bustling market street in North Chennai, home to shops, manufacturing units, enterprises, and street vendors. The section undergoing plaza construction stretches 1,000 meters, from Cemetery Road Junction to BSNL Junction. The project is valued at ?27.3 crore under the World Bank-funded Chennai City Partnership.

Planned upgrades for the area include artistic lighting, signage, entry nodes, safe crossings, pickup and drop-off bays, an entry arch, a children’s play area, and cobblestone walls along the 3-meter footpath on both sides of the road.

“It’s taking time because of the deep sewer and stormwater drain work. About 60% of both are completed. Once the underground work is finished, the plaza will be ready in six months,” said a site engineer with the Greater Chennai Corporation.

Despite the ongoing construction and two-way traffic amidst a sea of parked bikes, commuters face huge difficulties navigating the area. “We’ve allocated parking space behind the area, but people refuse to use it,” said an executive engineer with GCC.

“The parking space is 1 km away from my shop. How can I park my vehicle there?” questioned a shop owner near the BSNL junction.

Adding to the chaos, a large excavator navigates the narrow stretch on MC Road, causing further concern. “I was so scared when I saw it coming through,” said a local. 

With the assembly election just months away, the state government has accelerated efforts to complete houses under its flagship rural housing programme. The second phase of the initiative involves the construction of one lakh houses at an estimated cost of ?3,500 crore. So far, 25,657 families have already moved into homes completed under the second phase, while the remaining 74,343 units are in the final stages of construction. According to senior officials from the rural development and local administration department, all beneficiaries under the second phase are expected to take possession of their houses by the first week of February next year. Officials noted that demand for the housing programme has been particularly strong in northern districts such as Tiruvannamalai, Cuddalore and Villupuram, as well as in several delta districts. If the February deadline is achieved, the government would have delivered permanent housing to one lakh families several months ahead of the original schedule. This would take the total number of beneficiary families to two lakh since the launch of the scheme in March 2024, marking a significant milestone that is expected to be highlighted as the state moves into the election period. 

Chennai, Dec 18 — The Chief Minister of Tamil Nadu on Thursday said that efforts are being taken to improve infrastructure and public amenities across all districts in the state.

While inaugurating a newly constructed marriage hall and solemnising the marriages of 15 couples, the Chief Minister said he felt a sense of satisfaction whenever he visited his home constituency.

He expressed hope that the marriage hall, constructed at a cost of ?25.72 crore, would meet the needs of the public.

He said the assembly constituency has become synonymous with development and achievement. He also credited the support of family members for personal and professional success, noting that such support plays a key role in the lives of many.

During the visit, foundation stones were laid for a new government school and a public retail outlet, to be developed at a total cost of ?17.47 crore.

He later said that the constituency has been developed comprehensively with modern hospitals, parks, learning centres, libraries, a stadium, and upgraded corporation schools, and added that similar development efforts are underway to uplift all 234 constituencies in the state.