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.

The city is undergoing a dramatic transformation, propelled by large-scale infrastructure projects that are reshaping its skyline and property market. Over the last decade, a steady stream of investments in transport, urban renewal, and civic amenities has turned it into one of India’s most dynamic real estate destinations. In 2025, this evolution is reaching a critical peak, positioning the city as a place where infrastructure and real estate progress in lockstep.

This growth is not just about new flyovers or expanded metro lines—it’s about unlocking the full potential of once-overlooked neighborhoods and reshaping how people live, commute, and invest. With metro rail extensions weaving through emerging suburbs and expressways reducing travel times across regions, urban sprawl is no longer a disadvantage. Instead, it is creating fertile ground for new investment zones, housing clusters, and commercial corridors.

The expansion of the metro rail network is among the most transformative developments to date. The second phase of the metro project, estimated at over ?63,000 crore, is one of the largest infrastructure endeavors in the region. It spans nearly 119 kilometers, connecting previously disconnected parts of the city through three major corridors. By improving commute times, enhancing last-mile connectivity, and linking business hubs with residential areas, the metro is not only boosting quality of life but also driving a surge in property demand in adjacent zones. Areas once considered peripheral are now at the center of the real estate growth story.

On the roads, major projects such as the Outer Ring Road and the upcoming Peripheral Ring Road are bringing new vitality to the transport ecosystem. These thoroughfares are designed to alleviate traffic congestion in central areas while opening up access to industrial, logistics, and residential zones on the city’s edge. Improved road connectivity has had a cascading effect on real estate, attracting both developers and end-users to previously underutilized regions.

The proposed greenfield airport is another key milestone in infrastructure-led development. As it moves from planning to execution, this project is expected to significantly enhance global connectivity, supporting not only air traffic but also the growth of logistics, warehousing, and tourism sectors. This, in turn, is fueling early-stage residential interest in surrounding regions, which are being primed for plotted developments, integrated townships, and commercial investments.

The city’s growing status as a commercial and industrial hub cannot be overstated. It forms a core part of a major industrial corridor and is home to large IT parks, manufacturing zones, and logistics hubs. It accounts for a significant portion of India’s automobile production and plays a vital role in electronics and auto component exports. With industrial parks and integrated business cities attracting global companies, real estate in these corridors is witnessing a corresponding rise in both residential and commercial demand.

This wave of development is not limited to transit and employment infrastructure. Urban renewal initiatives are adding another layer of depth to growth. Revamps in key commercial centers are making neighborhoods more pedestrian-friendly and sustainable. Central business district redevelopment projects and the modernization of major railway stations are elevating the city’s urban core, making it more appealing for corporates, retailers, and residents alike.

Civic infrastructure is also evolving. The expansion of healthcare facilities and educational institutions is transforming several zones into self-sufficient micro-markets. Lifestyle destinations such as large malls and entertainment hubs have become focal points for shopping, leisure, and social interaction, enhancing overall liveability across suburban and peripheral areas.

The direct impact of this infrastructure-driven growth is reflected in property values and market momentum. Prices in well-connected neighborhoods are appreciating steadily, with many corridors recording a 5% to 7% annual rise. Rental yields have also surged due to increased migration from other states and rising demand from professionals working in IT, manufacturing, and allied sectors. In the third quarter of 2024, the city led the country in residential rental growth, registering a 22.2% increase over the previous quarter. Commercial real estate is experiencing parallel growth. Office stock is expected to exceed 100 million square feet by 2026, up from 89 million at the end of 2024. Co-working spaces have flourished, driven by demand from startups

Expanding welfare schemes ahead of a crucial Assembly election, it was announced on Friday that one lakh housing units would be constructed under the Dravidian Model government’s flagship programme ‘Kalaignar Kanavu Illam Thittam’ at a cost of ?3,500 crore. This was one of five major announcements, which was greeted with loud applause from the treasury benches.

In addition to the construction of two lakh houses over the last two fiscal years, the government will build one lakh houses in the coming fiscal year. The housing initiative is part of a broader plan to construct eight lakh houses with the objective of achieving a hut-free Tamil Nadu by 2030.

The government also announced the upgradation of 2,200 km of rural roads at a cost of ?1,088 crore under the Village Road Development Scheme to strengthen the rural economy. Under this scheme, the quality of 20,484 km of rural roads has already been improved at a cost of ?8,911 crore.

Addressing grievances of temporary teachers, it was stated that they would be given priority during recruitment to fill vacant permanent teacher posts in government schools. A government order in this regard will be issued shortly and will be implemented from February 4.

The government will also enhance monthly pensions from ?2,000 to ?3,400 for noon-meal organisers, anganwadi workers, and village panchayat secretaries. Additionally, retirement benefits will be doubled from ?1 lakh to ?2 lakh.

The Madras High Court on Friday granted an interim stay on the operation of a government order (GO) that permitted the conversion of non-religious buildings into religious buildings without obtaining a no-objection certificate (NOC) between February 2019 and March 2024.

A division bench passed the order while hearing a public interest litigation, which contended that the construction or conversion of any building into a religious institution was never an unfettered right in Tamil Nadu.

The petitioner argued that a GO issued by the Housing and Urban Development Department in January 2026 had introduced unconstitutional conditions. As per the GO, buildings functioning as religious institutions between February 4, 2019, and March 6, 2024—though originally approved for non-religious purposes—were retrospectively validated. The statutory requirement of obtaining an NOC was made applicable only prospectively from March 7, 2024.

It was further contended that the GO could adversely affect public order, morality, and public peace, as it was issued without adequately considering statutory provisions and regulatory measures required to maintain public order. The petition therefore sought to quash the GO.

The residential real estate sector recorded a notable downturn in the 2025 calendar year, with housing sales across seven major urban markets declining by 14% year-on-year. Approximately 3.96 lakh units were sold during the year, down from nearly 4.6 lakh units in the previous year. This broad market contraction was driven by factors such as rising property prices, economic uncertainty, and shifts in the employment landscape, particularly within the technology-driven job market. Despite the decline in sales volume, the total value of homes sold rose marginally by 6% to over ?6 lakh crore, indicating sustained demand for higher-priced properties and a continued trend toward premiumization. Mixed Performance Across Key Southern Markets Real estate markets in the southern region presented a mixed performance during 2025. One major southern market emerged as a standout, recording a 15% year-on-year increase in housing sales, with approximately 22,180 units sold. This growth contrasted sharply with other large southern markets, where one recorded a marginal 5% decline in sales with around 62,205 units sold, while another experienced a sharper 23% drop, totaling approximately 44,885 units. Collectively, these southern markets accounted for roughly 129,270 units sold during the year, highlighting a clear divergence within the region, with one market defying the broader downward trend. Regional Market Dynamics and Supply Trends Beyond the southern region, other major markets also experienced notable sales contractions. One western metropolitan region saw an 18% year-on-year decline, with approximately 1.28 lakh units sold, remaining the largest market by volume despite the drop. Another prominent western market recorded a 20% decline, with sales of about 65,135 units. Meanwhile, a major northern region experienced an 8% annual decline, with approximately 57,220 units sold. New housing supply across the seven major markets remained relatively resilient, increasing by 2% year-on-year to around 4.19 lakh units in 2025. However, the combination of increased supply, moderating demand, and rising prices led to a 4% rise in unsold inventory, reaching approximately 5.77 lakh units by year-end. One southern market, in particular, witnessed a sharp 23% increase in unsold housing stock. Premiumization and Market Recalibration Industry experts described 2025 as a phase of market recalibration rather than demand destruction. Buyers remained active but were increasingly selective, with a clear shift toward premium and luxury housing segments. The rise in total sales value despite falling transaction volumes reinforces this trend. Developers adopted more disciplined supply strategies, helping sustain price stability across many markets. Continued income growth and strong interest from overseas buyers further supported demand for higher-value homes. Peer Market Comparison Among the southern markets, one city stood out with a 15% growth in housing sales, while its regional peers recorded declines of 5% and 23%, respectively. This contrasted with the broader trend across the seven major markets, where most regions experienced negative growth, underscoring a widespread market adjustment nationwide.

Jan 21 (Reuters) – An Indian housing finance lender posted a 7.7% rise in third-quarter profit on Wednesday, supported by healthy loan growth in smaller cities amid intensifying competition in the mortgage lending space. The non-banking finance company (NBFC) reported consolidated net profit after tax of 5.20 billion rupees ($56.8 million) for the quarter ended December 31, compared with 4.83 billion rupees a year earlier. Total revenue increased 9% to 21.19 billion rupees. The lender has expanded aggressively into the non-premium and affordable lending space in recent quarters, where loans typically command higher interest rates due to lower competition from big banks. However, that advantage may be eroding, as analysts said competition in the affordable segment from larger lenders is picking up. Meanwhile, the prime segment, which generally includes loans in larger cities, continued to face stiff competition. Disbursements in the emerging markets segment, which caters to smaller cities with an average loan ticket size of around 2.5 million rupees, rose 25% year-on-year to 21.49 billion rupees, while the prime segment grew 20%. However, disbursements in the affordable loans segment, which caters to borrowers with monthly household incomes as low as 10,000 rupees, fell 15%, with overall disbursements rising 16%. The company said the decline in the affordable segment was due to ticket size capping in select geographies. Net interest income, the difference between interest earned and paid, rose 11% to 7.72 billion rupees. Asset quality also improved, with gross bad loans as a percentage of total loans declining to 1.04% at the end of December from 1.21% a year earlier.

As expectations build around the Union Budget 2026, the real estate sector is seeking policy continuity and targeted reforms to sustain its recent momentum and address long-standing structural challenges. Industry leaders believe that with the right mix of demand-side incentives, regulatory easing, and a strong infrastructure push, real estate can play an even more significant role in India’s economic growth story. The sector has demonstrated notable resilience in recent years, supported by steady demand, evolving buyer aspirations, and government-led initiatives. However, affordability continues to remain a key hurdle for a large segment of homebuyers. Expanding the definition of affordable housing in urban areas is widely seen as a move that could significantly boost end-user demand, particularly as residential real estate continues to be viewed as a long-term investment option. There is also a strong call for interest subsidies for first-time homebuyers who currently fall outside existing benefit frameworks, along with an increase in the home loan interest deduction limit to further encourage housing purchases. From a developer’s perspective, faster project approvals and rationalisation of GST on under-construction homes are considered crucial to reducing delays and improving execution efficiency. Granting industry status to real estate is another widely supported measure, as it could unlock access to more affordable financing and help streamline regulatory processes. Continued investment in infrastructure is also expected to support housing demand across regions. A growth-oriented Budget, stakeholders believe, could have multiplier effects across nearly 250 allied industries, driving employment and broader economic activity. Echoing the need for stability and long-term planning, industry voices stress the importance of consistent taxation policies, expanded access to institutional financing, and simplified regulations, particularly for luxury and branded residential segments. Sustained investment in urban infrastructure, mass mobility, and integrated city planning is seen as essential, given that connectivity and civic amenities directly influence the attractiveness of premium developments. Measures that promote formalisation and reduce compliance burdens are also expected to help the sector mature further and strengthen investor confidence. Institutional capital has emerged as another key theme ahead of the Budget. Strengthening demand-side support in established urban markets, alongside continued investments in urban transport and last-mile connectivity, is considered critical. There is also growing advocacy for enhanced incentives to encourage greater institutional participation in real estate, making investments more regulated, transparent, and scalable. Such a calibrated and forward-looking approach is expected to reinforce confidence across the value chain and further establish real estate as a key contributor to employment generation, capital formation, and India’s urban development journey.

Starting January 1, 2026, a significant update will be implemented concerning real estate law in Tamil Nadu. This update pertains to the enforcement of a three-bank-account structure for real estate projects. The change aims to strengthen monitoring of homebuyers’ funds and prevent misuse of money for unrelated projects. As per the latest circular, builders are required to establish three specific bank accounts within a single scheduled bank and branch for each real estate project. The details of these accounts must be furnished at the time of applying for project registration.

The three mandated accounts are:

A. Designated Collection Account (100%)
B. Designated Separate Account (70%)
C. Designated Transaction Account (30%)

Under this mechanism, all homebuyer payments are first deposited into the collection account (100%). From this account, the bank automatically transfers 70% of the amount to the separate account earmarked exclusively for land and construction expenses. Funds in the separate account (70%) can be accessed by the builder only upon submission of the required certificates issued by the architect, engineer, and chartered accountant, as prescribed under the applicable regulations. These certificates must also be uploaded to the regulatory authority’s online portal. The transaction account (30%) will hold funds contributed by the builder that do not originate from homebuyers. This account may be used for expenses such as refunds (limited to a maximum of 30% of the total refund amount), compensation, interest on refunds or compensation, marketing expenses, loan repayment including interest, administrative and overhead costs, and penalties, if any. Builders are required to redesign their project-level banking operations by opening all three mandated accounts in the same bank and branch, with an automated same-day sweep mechanism to eliminate manual control at the collection stage. All customer payment channels must be aligned to route funds only through the designated collection account; failure to do so will render the receipt non-compliant. In joint development projects, landowners must be contractually bound to the same three-account structure before any revenue share is released. Existing project loans must be disclosed and ring-fenced, ensuring that loan servicing occurs only through the permitted transaction account. Going forward, withdrawals and refunds must be planned strictly around certified construction milestones, as inter-project fund movement will no longer be legally or technologically permissible.

A senior Union government official on Wednesday inaugurated and laid foundation stones for port infrastructure projects worth about ?2.19 billion at two major ports in Chennai, aimed at strengthening coastal protection, safety systems, healthcare facilities and digital operations. At one port, four projects with a combined investment of over ?1.29 billion were inaugurated. These included the strengthening of nearly 850 metres of the eastern breakwater, with the revetment upgraded through redesigned slopes and tetrapod armouring to improve protection against storms and cyclones. A new firefighting pump house was commissioned in oil dock areas to enhance emergency preparedness in hazardous zones. The port also inaugurated the modernisation of its hospital, upgrading it into a 125-bed facility spread across around 127,000 square feet, with improved wards, operation theatres, diagnostic facilities and enhanced safety systems. Another project involved the launch of an integrated enterprise-level digital platform designed to reduce paperwork, cut delays and improve turnaround time for port users by streamlining operations. At the second port, foundation stones were laid for two infrastructure projects and an electronic port clearance portal was launched to enable online clearances for shipping lines and agents. One project involves a ?0.014 billion northern access road connectivity initiative, including the realignment of a 360-metre stretch of the port’s boundary wall to facilitate faster cargo evacuation. The port has also completed the rehabilitation of a 202-metre damaged section of its northern breakwater at a cost of ?1.05 billion, using heavy tetrapods and rock armouring based on advanced engineering designs. Officials said the projects would strengthen port resilience, improve safety and accelerate operations, contributing to lower logistics costs and more efficient cargo movement. Together, the two ports crossed 100 million tonnes of cargo handling in 2025 for the first time. One port handles about 1.8 million standard shipping containers annually, while the other handled 48.41 million tonnes of bulk and liquid cargo last year, with utilisation exceeding 80 per cent of its capacity.

The state government on Tuesday unveiled a five-year warehousing policy aimed at easing logistics bottlenecks and supporting its ambition to build a $1 trillion state economy by 2030. The policy focuses on expanding warehousing infrastructure beyond established industrial hubs into delta regions, Category C districts, and Tier II and Tier III cities. Under the policy, projects in delta and Category C districts will be eligible for a 25% fixed capital subsidy, capped at ?2 crore and disbursed over three years, provided they meet minimum capacity requirements. Land in state-run industrial parks will be offered at half the standard rate, while large facilities of at least 1 million sq ft on government land will receive a five-year exemption from electricity tax. Additional incentives will be available for green features such as rooftop solar and certified sustainable construction. It identifies six priority areas: greenfield warehousing in industrial parks, brownfield expansion of existing facilities, public-private partnerships through land allocation, adoption of sustainable and smart technologies, development of commodity-specific silos and cold chains, and ease-of-doing-business reforms aligned with the state’s logistics policy. The policy underscores the growing importance of storage and distribution to the state’s manufacturing-led growth strategy. The state, which contributes about 9.2% to India’s GDP despite accounting for just 4% of its landmass, is targeting a $250 billion manufacturing output by the end of the decade. Officials say the Warehousing Policy 2026 is designed to address sharp regional imbalances in storage infrastructure while consolidating established logistics hubs. At present, demand is heavily concentrated around the capital city, which absorbed around 5 million sq ft of Grade-A warehousing space in 2024, led by third-party logistics providers, manufacturing firms, and e-commerce companies. Another major city followed with about 1.5 million sq ft, driven largely by retail supply chains, while an industrial town has emerged as a key node for the automotive and electronics ecosystem. By contrast, delta districts and several Category C regions remain under-served, despite strong bases in foodgrains, agro-processing, fisheries, and small-scale manufacturing. Limited access to cold storage and commodity-specific warehousing has constrained value addition, increased post-harvest losses, and weakened supply-chain resilience in these regions. Government-owned warehousing capacity in the state currently exceeds 1.5 million tonnes, supplemented by around 135 private cold storage facilities with an estimated 0.2 million tonnes of capacity. However, the report acknowledges that the geographical spread of this infrastructure remains uneven.

Model houses have been set up for families to be relocated from 13 villages in Kancheepuram district as part of the resettlement plan for the proposed greenfield airport at Parandur. The authorities have constructed multiple model houses of similar size (400 sq ft) but with different design options near the primary health centre in Parandur. Villagers are encouraged to visit these houses and select a design of their choice.

An audio-visual presentation has also been prepared and will be played inside the model houses. This presentation explains the amenities that will be available in the proposed townships, including access to schools, hospitals, and other essential facilities. It also details the relief and compensation packages offered to families who give up their houses and land for the airport project.

The overall master plan for the resettlement townships was prepared with assistance from a consultancy firm. In June last year, the state government announced a relief package for farmers and residents of the 13 affected villages. Under this package, compensation ranging from ?35 lakh to ?60 lakh per acre has been offered for agricultural land.

In addition to compensation for the structural value of existing houses, affected families will be provided with an alternative housing site equivalent to five to ten per cent of their original landholding, along with a newly constructed 400 sq ft house. Alternatively, families may choose to receive ?8 lakh in cash instead of the house.

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.