The Indian housing finance landscape is undergoing a significant transformation, driven by the adoption of digital innovation and the increasing participation of younger demographics. Millennials and Gen Z now represent an overwhelming 90-95% of residential property transactions, marking a shift away from traditional, counter-based lending methods. This shift is particularly evident in the home loan application process, with approximately 72% of borrowers under 40 opting for online platforms. Notably, even borrowers aged 60 and above are embracing digital tools for their housing finance needs. The widespread use of digital infrastructure like DigiLocker has been a key enabler of this transformation. Nearly 80% of DigiLocker users seeking home loans are under the age of 35, facilitating paperless documentation and faster loan approvals. The demand for faster, more transparent digital loan journeys is reshaping the industry, leading financial institutions to expand their digital offerings and streamline customer onboarding. Alongside this digital shift, a notable trend is the rising homeownership rates in India's Tier 2 and Tier 3 cities. These markets, particularly in the middle-income segment (Rs 11-20 lakh), have seen impressive loan penetration rates of 74%. The expansion of internet connectivity, digital infrastructure, and increasing financial awareness are helping bridge the gap between emerging markets and larger metropolitan areas, making formal housing finance more accessible to families in smaller cities. As a result, loan disbursals in these regions have grown by 15% year-over-year, outpacing growth in Tier 1 cities. The shift toward digital housing finance is driven not just by preference but by necessity. Demographic trends and technological advancements are making digital solutions a key requirement in the competitive market. While public sector banks retain a strong market share due to their extensive branch networks and trust, private sector banks and fintech firms are quickly gaining traction by offering superior digital experiences and faster processing times. Analyst projections suggest continued double-digit growth for the sector, although there are concerns about the potential rise of Non-Performing Assets (NPAs) if credit underwriting models fail to address macroeconomic volatility. Despite the digital advancements, there are still significant structural challenges in India's housing finance sector. A large number of respondents continue to experience issues such as lengthy procedures, unclear terms, and hidden charges, which erode trust, particularly among older or less digitally literate borrowers. Affordability also remains a complex issue, with lower-income households trying to keep Equated Monthly Installments (EMIs) within 25% of their income, while higher-income borrowers may extend this to 40%. Metro city borrowers tend to have a higher tolerance for longer loan tenures and larger EMI ratios, which could mask future financial strain. Another challenge is the reluctance of a significant portion of the population to commit to homeownership. Many individuals prefer renting, are apprehensive about the financial commitment, or face difficulties saving for a down payment. This indicates that access to housing finance is not purely a digital issue, but also an economic one. A key concern for investors and regulators is the potential rise in defaults among younger, first-time buyers, who may be entering the market with limited financial literacy and are at risk of becoming over-leveraged, particularly if interest rates rise unexpectedly. While financial institutions are investing heavily in digital capabilities, the rapid expansion of credit to less experienced buyers could pose a significant risk if not paired with robust risk mitigation strategies. Regulatory oversight must ensure that consumer protection remains a priority as digital lending practices continue to evolve. As digital systems mature, the homebuying process in India is becoming younger, faster, and more integrated. However, the challenge moving forward will be to balance the enhanced convenience of digital tools with sound financial practices. If digital solutions continue to simplify processes while improving transparency and robust credit assessments, India could see a future where homeownership becomes a reality for millions, not just an aspiration. Projections indicate that digital channels may account for over 60% of new home loan originations within the next three years.

North Chennai, Porur and the south-western suburb of Kundrathur will be among the key focus areas at the 18th edition of FairPro, a major real estate property exhibition organised by the national association of real estate developers.

An adviser associated with this year’s event said that a majority of participating developers are expected to showcase projects located in these emerging corridors. At least four large upcoming developments in North Chennai will be highlighted during the exhibition. In addition, projects along the Porur–Kundrathur stretch and plotted developments along prominent city corridors such as East Coast Road (ECR), Old Mahabalipuram Road (OMR) and GST Road will also be featured.

The three-day property fair will be held at a leading trade and exhibition centre in Nandambakkam, beginning Friday. More than 80 developers approved by the Real Estate Regulatory Authority (RERA) are expected to participate, collectively presenting over 500 housing, commercial and plotted developments that have received planning approval from the city’s metropolitan development authority.

Organisers said that buyer interest continues to be strong in both the luxury and mid-segment housing categories. Homes priced between ?1 crore and ?2 crore are witnessing steady demand in the premium segment, while properties priced between ?45 lakh and ?70 lakh remain highly sought-after in the mid-income category.

In total, more than 50,000 residential units covering approximately 57.2 million square feet will be available at the fair. The starting price for properties on offer is ?15 lakh, making the exhibition attractive to a wide range of buyers, from first-time homeowners to investors.

At last year’s edition, 77 developers participated, drawing a footfall of nearly 48,500 visitors and generating business transactions worth ?415 crore. This year, organisers expect higher participation and stronger buyer engagement.

A leading public sector bank has announced a special housing loan offer starting at an interest rate of 7.10%, subject to the borrower’s credit profile and credit score, further adding to the appeal for prospective homebuyers.

To ease traffic congestion and curb illegal roadside parking, the civic body has announced plans to construct two multi-level car parking (MLCP) facilities along a major arterial road and in the eastern part of the city. The projects have been allocated a budget of ?25 crore, and tenders are expected to be floated soon. The authorities aim to make the facilities operational by the end of the year. One of the proposed locations is a key arterial stretch that witnesses heavy traffic, with an estimated 10,000 vehicles passing through every hour. Due to inadequate designated parking spaces, many motorists park along the main road while visiting eateries and shopping complexes, often resulting in traffic congestion. The proposed MLCPs will be three-storey buildings with two basement levels. Each facility will accommodate around 40 cars across the two basement floors, with 20 slots on each level. The ground floor will have space for 57 two-wheelers, while the first and second floors will each accommodate 78 bikes. The third floor will provide parking for 103 two-wheelers. Parking charges will be determined after the tender process and land-related formalities are completed. Addressing concerns that spending large sums on such systems could become wasteful expenditure, a senior official stated that illegal parking had increased significantly in market areas and along a key connecting road. The issue was monitored through the Integrated Command and Control Centre (ICCC), and several complaints were received from the public, prompting the decision to proceed with the project. Proper maintenance, the official assured, will be ensured.

More than 2,000 homebuyers in a northern Chennai neighbourhood have been left in distress after allegedly purchasing apartments built on land that is now reported to be under legal dispute and classified as temple property. According to a formal complaint submitted to the Director General of Police by the residents’ association of the apartment complex, the state registration department has halted property registrations after identifying that two survey numbers forming part of the project land were categorised as temple land in official records. The residents claim they became fully aware of the gravity of the issue only in mid-2025, when they learnt that a legal dispute concerning the two survey numbers was pending before the Madras High Court. However, concerns over registration had reportedly surfaced much earlier. In early 2018, residents were informed that registrations had briefly been stopped. When they sought clarification, the developer allegedly described it as a minor issue that had been resolved. Registrations for both new purchases and resale transactions reportedly continued until mid-January 2026. In their complaint, the residents have alleged criminal intent and cheating, stating that their financial security is now at serious risk. Several banks have reportedly stopped processing home loans for units in the complex, while some financial institutions have allegedly assigned negligible or zero value to the properties due to the title uncertainty. The association estimates that buyers have collectively invested more than ?2,000 crore in the project, with the average apartment costing approximately ?1 crore. They have urged the police to register cases under relevant provisions of the Bharatiya Nyaya Sanhita, including sections pertaining to cheating and forgery. Residents further alleged that while maintenance responsibilities were handed over to the association, original title documents have not been provided. They contend that although the dispute concerns only two survey numbers, the uncertainty has impacted the entire project. According to them, the land classification issue had surfaced as early as 2015, and they question why corrective steps were not taken earlier to prevent escalation. The association has also demanded the handover of all original title deeds and related legal documents, including affidavits and approval records, as well as transfer of the project’s corpus fund—estimated at ?14.3 crore—along with accrued interest. The residential development spans over 15 acres across 16 survey numbers and consists of more than 2,000 apartments across multiple residential blocks. The project was launched in the early 2000s, underwent several plan revisions and approval processes, and apartments were handed over in phases between 2014 and 2019. Fewer than 10 units are reportedly still unsold. Attempts to obtain a response from the developer were unsuccessful at the time of reporting.

On Tuesday, the High Court declined to hear a batch of petitions challenging the construction of a multi-storey residential complex by a private real estate developer near the Pallikaranai marshland, part of which has been designated as a Ramsar site. A division bench observed that it could not undertake a parallel hearing when the Supreme Court is already examining issues related to wetlands across the country, including those in Tamil Nadu. The court stated that the petitioners are at liberty to approach the Supreme Court for appropriate relief. The matter concerns construction activities initiated near the Pallikaranai marshland. The petitioners contended that such developmental activities are prohibited within the Ramsar-designated area and its surrounding zones. They sought to quash the environmental clearance and building plan approvals granted for the project. According to the submissions made in court, the Pallikaranai marsh reserve forest and Ramsar site together cover a total extent of 3,082.74 acres. Of this, only 1,717.08 acres have reportedly been handed over to the forest department. The petitioners urged the court to direct the government to transfer the remaining land falling within the Ramsar site boundaries to the forest department for protection and conservation.

The country’s central banking authority announced on Tuesday that loans provided by commercial banks to a national-level cooperative development financing institution will be classified as priority sector lending, provided these loans are sanctioned on or after January 19, 2026. The funds extended to this development institution will be used to support cooperative societies by enabling access to financial assistance for eligible activities. However, this benefit will not apply to certain categories of banks, including regional rural banks, urban cooperative banks, small finance banks, and local area banks. The central banking authority clarified that the loans must strictly be utilized for activities that fall under the prescribed priority sector guidelines issued in 2025. Only lending aligned with the specified categories under these guidelines will qualify for such classification. In addition, the central government and the monetary regulator have introduced multiple measures aimed at strengthening the cooperative banking sector. These initiatives are designed to improve financial stability, enhance governance standards, promote digital banking services, and ensure stronger customer protection mechanisms. Deposits held in cooperative banks continue to be protected under the national deposit insurance framework. Each depositor is insured up to ?5 lakh per bank, including the interest component, offering a safeguard against potential bank failures. The cooperative development financing institution mentioned earlier is a statutory organization functioning under the administrative supervision of the central government’s ministry responsible for the cooperative sector. Its primary role is to provide financial assistance to cooperative institutions and support the expansion and development of cooperative activities across the country.

Stronger mobile signals, fewer call drops, and faster internet speeds are set to become standard features in large residential and commercial buildings across Tamil Nadu. The state government has amended building regulations to make this possible. The government has revised the Tamil Nadu Combined Development and Building Rules, 2019, mandating dedicated in-building telecom infrastructure in large buildings and layouts to strengthen digital connectivity across the state. As per the government order, buildings with a floor area exceeding 750 square metres must provide dedicated telecom rooms under the newly introduced In-Building Solutions (IBS) framework. IBS refers to telecom infrastructure and associated equipment installed within a building to ensure high-speed data transmission, enhanced signal coverage, reduced call drops, and optimal spectrum usage. Projects exceeding 2,000 square metres must also submit a service plan with required specifications certified by a qualified telecom networking consultant. The infrastructure must be accessible to all authorised telecom service providers. The amendment is expected to directly benefit homebuyers by ensuring stronger indoor mobile signals, fewer call drops, and faster internet speeds, particularly in high-rise apartments and large residential complexes. By mandating access to all service providers, residents will have greater choice of networks. The move will also make buildings future-ready for expanding 5G services, enhance property value, and reduce the need for repeated road cutting and messy cabling in layouts.

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.