Economically backward families who have been living along roadsides and canal banks in North Chennai will soon be relocated to a large-scale housing complex developed by a metropolitan planning agency. The project, comprising 776 housing units, is scheduled to be opened on January 21. The housing complex is located close to a major government hospital and has been designed as a comprehensive residential development with education, health, and community-support facilities. It consists of two residential blocks with ground-plus-nine floors, each accommodating 388 homes. Five per cent of the units have been exclusively reserved for persons with disabilities to ensure inclusive living. Each dwelling is a one-bedroom apartment with a built-up area of approximately 420 square feet. Unlike earlier resettlement projects that focused largely on providing basic shelter, this development places strong emphasis on quality construction, improved amenities, and long-term durability. The design and finishes are intended to be comparable to private apartment complexes, marking a shift away from minimum-standard housing towards sustainable urban living. The project reflects a planning approach that prioritises long-term livability. From the initial planning stage, the focus has been on creating a safe, comfortable, and well-connected residential environment rather than merely providing shelter. The complex features a spacious central courtyard paved with interlocking blocks, landscaped parks, outdoor gym equipment, children’s play areas, modern gazebos, and ample seating arrangements for senior citizens, all of which are intended to promote community interaction and healthy living. In addition, essential facilities such as a childcare centre, a public distribution outlet, and an indoor gymnasium have been incorporated within the campus to support daily needs. Overall, the project represents a significant step towards improving housing standards for economically weaker families, while fostering a dignified and community-oriented living environment.

South and West Chennai are expected to emerge as the city’s key residential growth drivers in 2026, supported by improved road infrastructure, expanding metro rail connectivity, and proximity to major employment hubs, according to a recent study. The report noted that infrastructure developments such as the Kuthambakkam bus terminus and the upcoming Metro Rail Corridor 4 have already sparked increased residential interest in the western suburbs.

Strong housing sales have been recorded across South and West Chennai, particularly along the Old Mahabalipuram Road, Grand Southern Trunk Road, Porur–Poonamallee Road, and emerging western suburban micro-markets. Factors such as anticipated repo rate cuts, rationalisation of taxes on select construction materials, and supportive policy measures are expected to enhance affordability and strengthen buyer sentiment in 2026, especially within the affordable housing segment.

The study expects South and West Chennai to remain the city’s primary residential growth corridors in 2026, driven by metro rail expansion, improved road connectivity, and closeness to major employment centres. Despite broader economic uncertainties, residential property prices have witnessed only marginal adjustments, highlighting the stability and resilience of Chennai’s housing market.

A Chennai-based EPC and industrial park developer has raised around ?400 crore through a preferential issue. The fundraising was structured through a combination of equity and warrants issued to domestic institutions and foreign portfolio investors (FPIs). The company plans to enter real estate promotion and development in a significant way, positioning it as a new business vertical and a logical extension of its existing EPC operations. As part of its real estate strategy, the company will focus on residential, commercial, and IT/ITeS segments. It plans geographic expansion and market development across Tamil Nadu initially, before expanding into other states and regions. According to the company, the macroeconomic environment presents compelling opportunities in Chennai and Tamil Nadu, supported by robust growth and evolving workforce patterns. The strategy will focus on pursuing value-creating opportunities in asset classes and markets where demand and supply dynamics are well understood. The preferential issue is expected to accelerate the next phase of growth while preserving investor value. A portion of the funds raised will also be used to consolidate land parcels at Sunguvarchathriam, near the Oragadam industrial hub and close to the proposed new greenfield airport. The company currently holds around 400 acres in this location and plans to roll out a master development plan for these lands by the second quarter of FY27, according to official notes.

Surpassing the long-standing dominance of the IT sector, Global Capability Centres (GCCs) have emerged as the primary growth engine of Chennai’s commercial real estate market in 2025. GCCs accounted for 51% of the city’s total gross office space leasing, overtaking all other sectors and compensating for a visible slowdown in demand from traditional IT and IT-enabled services. Out of the 8.4 million sq ft of gross office leasing recorded during the year, GCCs alone absorbed 4.3 million sq ft, underlining their growing strategic importance in the city’s office ecosystem. This performance placed Chennai well ahead of the national trend, where GCCs contributed 41% of total office absorption across India, an increase from 36% in the previous year. Office space absorption continues to act as a reliable indicator of sectoral expansion, with data pointing to a sustained upward trajectory. GCC-related leasing witnessed consistent growth, rising from 2.0 million sq ft (27% share) of the 7.4 million sq ft leased in 2023, to 3.29 million sq ft (41% share) of the 8.1 million sq ft leased in 2024, before crossing the halfway mark in 2025. The Chennai office market experienced a notable sectoral realignment during 2025, reflecting broader economic shifts and evolving industry dynamics. As GCC activity accelerated, supply conditions tightened. New office completions stood at 3.9 million sq ft, while net office absorption reached 5.6 million sq ft, indicating demand significantly outpaced supply. This translated into a 12% year-on-year growth in absorption, exceeding the 10% average growth recorded across India’s top seven office markets. Chennai also stood out as the only major metropolitan market with single-digit vacancy levels, with vacancy rates declining from 9.2% to 8.8% during the year. The tightening market conditions contributed to upward pressure on rents, with average monthly office rentals rising by 5% year-on-year to nearly ?79 per sq ft. Looking ahead, market indicators suggest that Chennai’s office sector is poised to maintain positive momentum through 2026, supported by sustained demand from GCCs. Beyond the metropolitan region, Coimbatore has emerged as a leading Tier-II city for GCC expansion, benefiting from improved infrastructure, talent availability, and cost advantages. While Chennai and Mumbai continue to function as key data centre hubs in the country, Coimbatore and Madurai are increasingly gaining traction as emerging data centre destinations, further strengthening Tamil Nadu’s position as a diversified commercial and digital infrastructure hub.

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.