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.

An Indian lender has sold a housing loan portfolio of about Rs 60 billion ($717 million), seeking to further lighten its credit load amid regulatory pressures on the industry. The portfolio was sold to about half a dozen state-controlled banks through private deals, according to people familiar with the matter, who asked not to be identified as the information is not yet public.

The Mumbai-based bank also unloaded another pool of car loans worth about Rs 90.6 billion, securitized in a fixed-income product called pass-through certificates, the people said. The lender had previously been in talks to offload the pool to about a dozen local asset management companies.

In June, the bank also sold a Rs 50 billion loan portfolio. Its credit-deposit ratio stood at 104% at the end of March, higher than the 85% to 88% rate in the previous three fiscal years, according to a domestic ratings agency.

The central bank has warned that deposit growth lagging behind credit growth “may potentially expose the banking system to structural liquidity issues.”

For its upcoming earnings report for the quarter ended September, the lender is expected to show deposit growth of 13% year-on-year, compared with an 8% increase in loans, according to a senior financial services analyst at a global research firm.

The fourth meeting of a ministerial group on boosting the real estate sector, held in Goa, has decided that no further exemption in GST should be granted on long-term lease of land by private entities or for sector-specific purposes such as tourism. The meeting was hosted by the state’s chief minister.

Several deputy chief ministers, state finance ministers, and central taxation officials attended the meeting.

A statement issued after the meeting said there were deliberations on various issues related to the real estate sector. While reviewing the value limit of Rs 45 lakh for defining an affordable residential apartment in metropolitan regions, it was decided that additional consultations with key states would be required before reaching consensus.

The issue of determining land value for calculating the value of construction services in apartment sales has been deferred for further examination.

The next meeting of the ministerial group is expected to be held on October 25.