Owners of a residential apartment complex in Chennai have informed the Madras High Court that a majority of them have decided in favour of redeveloping the property instead of reconstructing it. While reconstruction means rebuilding a structure exactly as it is, redevelopment involves constructing a new structure with a completely new plan and dimensions.

A two-member committee appointed by the court submitted that of the 351 flat owners, 216 agreed to the redevelopment of the property, while 135 owners voted for reconstruction. The decision was made during the general body meeting of the Flat Owners’ Association.

As per a recent rule by the state housing and urban development department, the decision to redevelop a property must be agreed upon by at least two-thirds of the apartment owners.

According to the court-appointed committee, former judges inspected 321 flats, and keys of 310 flats had already been handed over to the developer. An expert committee from IIT-Madras found the apartment buildings unsafe for living. Though the developer agreed to demolish and rebuild all three residential buildings, the Owners Welfare Association moved the high court seeking a directive for the developer to deposit ?106 crore toward rental accommodation for the flat owners until the buildings are reconstructed or redeveloped.

Shares of a recently listed housing finance company dropped 4% to their day’s low of Rs 144.90 on the stock exchange as the 1-month share lock-in period of the stock expired today. This means that approximately 12.6 crore (126 million) shares, which were previously locked in and prohibited from sale, will now be eligible to be sold. These shares represent 2% of the total outstanding shares of the company, according to a domestic research report.

A 1-month share lock-in period refers to a timeframe during which certain shareholders are restricted from selling or transferring their shares in the market. Typically set at six months but sometimes extending up to a year, this period ensures that major investors, such as promoters and anchor investors, hold their shares, supporting the company’s long-term growth.

During the lock-in period, shareholders such as company insiders, employees, or early investors are not allowed to sell or trade their shares in the open market. This helps stabilize the stock price by preventing a large influx of shares immediately after such events, which could cause volatility.

The shares of the housing finance company have declined 9.3% in the last two weeks while gaining 8.65% in the last week.

A state-backed joint venture has floated a ?315.2 crore tender to begin construction of a new IT park in Trichy. This project will add 5.5 lakh square feet of IT and ITES office space, tripling the city’s existing infrastructure.

Private developers are also planning to contribute another 6 lakh square feet of office space in response to growing demand from investors attracted by Trichy’s low operational costs and access to a skilled talent pool. The IT park will be located next to the upcoming integrated bus terminus on the Trichy-Madurai National Highway.

Trichy’s IT/ITES infrastructure currently includes two government-owned facilities totaling 1.8 lakh square feet. With the new IT park, the city’s government office space will expand to 7.3 lakh square feet within two years.

Officials are also planning a fair to promote office and commercial space, as development has so far focused mainly on residential projects. The need for malls, luxury hotels, and other entertainment options will also be assessed.

The state real estate regulatory authority has cautioned homebuyers against purchasing properties in 314 projects registered with the authority that are currently undergoing proceedings at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) of 2016. Various banks, financial institutions, and other credit providers to the real estate sector have initiated the Corporate Insolvency Resolution Process (CIRP) against these companies.

In these 314 projects, significant investments have already been made. Of them, 56 are ongoing projects with an average registration of apartments at over 34%.

In certain cities, all ongoing or lapsed projects have high investment levels—for example, in one city, all five projects have 87% investment; in another, two projects have 60% investment, and the sole lapsed project in a third city is 55% invested.

Of the 56 ongoing projects, 21 are in the suburbs of a major city with 38% bookings, 20 in a neighboring city with 28% sales, 6 in the main city with 31% bookings, and 5 in another major city with 41% sales.

The state housing and area development authority has reduced the charges applied to additional areas beyond the original or permissible area of old residential tenements for eligible tenants/residents on the master list of the city’s repair and reconstruction board. The revised charge will now be 110% of the ready reckoner rate, down from the previous 125%.

Previously, developers often failed to provide the standard 300 square feet tenement that tenants are entitled to. As a result, beneficiaries were often allocated larger units, and under the earlier system, they had to pay 125% of the ready reckoner rate for the additional area. Many beneficiaries were unable to afford this extra cost, causing delays in their permanent rehabilitation.

Officials noted that these payment challenges led to a large backlog of unresolved cases, making it difficult to complete the rehabilitation process. To accelerate the rehabilitation of tenants in old buildings, the decision was made to reduce the charge for the additional area to 110% of the ready reckoner rate, making it more affordable for eligible beneficiaries.

The war among paint makers in India may lead to mergers, and one of the major players in the decorative paints segment could have a significant role to play. The company has informed that its global parent is conducting a strategic review of its portfolio to redeploy capital towards growing its core coatings businesses. The initial focus will be on its decorative paints business in South Asia, with various strategic options being explored, ranging from partnerships or joint ventures to mergers or divestments.

The company holds a 5–6% market share of the decorative paints industry in the country. It maintains a premium and highly profitable position with a strong track record of growth. Given this market position, the company is well-placed to participate in the further development of the highly dynamic South Asian decorative paints market, which is ripe for consolidation.

Several business houses have recently entered the decorative paints segment, which was until recently oligopolistic. Major market leaders were followed by other established players. Currently, new entrants are vying for a share of the market at a time when consumer demand is subdued and input cost inflation remains a constant challenge. There is also discounting and competition from local unorganised players. In this environment, smaller or less serious players could struggle to grow.

The multinational company may command a premium for its business in India amid the competitive landscape. The global manufacturer is restructuring its operations to cut costs, improve efficiency, and become more agile in volatile markets.

Average property prices in Gurugram have increased 76% over the last two years and 15.5% quarter-on-quarter to reach Rs 14,650 per sq ft in Q2 FY25, according to a recent real estate report. The report noted that prices have risen significantly despite residential demand increasing moderately by 9.9% quarter-on-quarter and supply growing by 18.3% quarter-on-quarter, driven by new listings and project launches.

With rising demand, prices of ready-to-move apartments have increased 12.9% quarter-on-quarter to Rs 13,729 per sq ft, while prices of under-construction apartments have risen 17.3% quarter-on-quarter to Rs 16,180 per sq ft.

The report highlighted that 3-BHK units accounted for 66% of buyer searches. Average prices of 3-BHK apartments increased 21.6% quarter-on-quarter to Rs 14,600 per sq ft. Additionally, builder-floors command an average rate of Rs 12,700 per sq ft, multistorey apartments at Rs 13,200 per sq ft, residential houses at Rs 16,100 per sq ft, and luxury villas at Rs 25,600 per sq ft.

The report also noted that Dwarka Expressway, New Gurgaon, and Golf Course Extension were among the most searched areas.

 The Union cabinet has approved the proposal of Chennai Metro rail project phase II comprising three corridors. The total length of the metro lines is 118.9 km having 128 stations. The project completion cost is Rs 63,246 crore and is planned to be completed by 2027. The phase-II consists of three corridors. The first corridor, Madhavaram to Sipcot, has a length of  48.8km with 50 stations. Lighthouse to Poonamalle bypass is the second corridor which has a length of 26.1 km with 30 stations. Madhavaram to Sholinganallur, the third corridor will cover 47 km with 48 stations. Chennai will have a total metro rail network of 173 km once phase II is fully operational. The phase-II corridors will connect areas like Madhavaram, Perambur, Thirumayilai, Adyar, Sholinganallur, Sipcot, Kodambakkam, Vadapalani,Porur, Villivakkam, Anna Nagar and St. Thomas Mount.
 

A federation representing 425 residents’ associations has urged the state government to withdraw the recent 6% property tax hike approved by the local civic body. They argued that taxes should not be collected from households lacking basic water and sewer connections.

During its second annual general meeting held over the weekend, the federation passed ten resolutions stressing the need for improved civic infrastructure before any tax increases are implemented. Members stated that essential amenities must be provided first and that the tax hike should be placed on hold.

Earlier, many residents’ groups had challenged the 2022 tax revision in court, arguing that the 50% to 150% increase was unreasonable given the inadequate civic facilities. The new tax hike was introduced before these petitions were resolved. Members raised concerns about damaged roads, ineffective stormwater drains, and the absence of proper water and sewer networks.

Worried about the ecological impact on a nearby protected wetland, the federation also passed a resolution opposing a proposed eco-park planned in a reclaimed dump yard. Additionally, they voted to create designated spaces for dogs and cattle away from densely populated areas and to ensure their regular feeding.

Starting in November, residents of the city must hire only trucks approved by the local civic body to clear construction debris. Those who dump debris in public places or water bodies may face fines of up to ?5,000.

The city generates about 850 tonnes of construction waste every day, and illegal dumping is widespread. On Saturday, the civic body fined several households and trucks a total of ?2.05 lakh for dumping waste in various areas.

To address this issue, the civic body will register and issue ID cards to around 1,000 construction and debris waste lorries. Association members have reportedly assured officials that they will deposit debris only at designated sites, especially after some were penalised during recent night inspections. Registration applications are now open, and a list of approved lorries will be released within a month.

According to the guidelines, debris may be deposited only at the civic body’s 15 authorised sites and only during working hours under supervision. Night-time dumping is prohibited. No fee will be charged for disposal during designated hours.

Residents and businesses can contact the approved lorries to transport debris to the designated sites in each of the 15 zones. A contractor agency, along with local workers, will then collect the waste and send it to processing units for crushing and reuse in construction.

Two city corporations located near a major metropolitan area are set to annex 37 surrounding villages and local bodies, expanding their boundaries. One corporation will incorporate 18 villages and residential areas.

Formed in 2021, this corporation will expand its area from about 85 sq km to over 170 sq km, becoming nearly one-fourth the size of the nearby larger metropolitan corporation. Its population will rise from roughly 7.2 lakh to just over 10 lakh following the merger.

A deputy mayor stated that the state government has approved the district administration's proposal to include the local bodies that were initially left out during the corporation’s creation due to earlier rural local elections.

For the second corporation, three municipalities will merge along with 19 village local bodies. After the merger, this corporation will grow from about 65 sq km to 188 sq km, and its population will increase from about 3.46 lakh to nearly 6.95 lakh.

An official from the state municipal administration department mentioned that the presidents of these village local bodies will remain in office until the end of 2024, after which the areas will be merged into the two corporations. The upgrade is expected between December 2024 and January 2025.