Singapore-based company is preparing to sell its office property, One Paramount in Porur, Chennai, to Prime Offices Fund,  for about ?2,750 crore. The deal highlights the growing interest of investors in India’s fast-expanding office market. One Paramount is a Grade-A IT park spread over 2.4 million sq. ft. on a 12.6-acre site. It hosts big multinational . With high occupancy levels, the asset offers attractive rental yields of about 7–7.5%, which is better than the market average. Keppel had itself purchased the same property in mid-2024 for about ?2,100 crore from RMZ Corporation and Canada’s CPP Investments. For Prime Offices Fund, this is part of a larger expansion strategy. The fund recently bought Prius Platinum (0.3 million sq. ft.) in Delhi’s Saket for about ?750 crore and another nearby 300,000 sq. ft. property for around ?760 crore. Both are fully leased and upgraded to standards, giving steady income. Chennai’s office demand is now spreading beyond OMR to new hubs such as Radial Road, Tambaram, Ambattur, and Madhavaram, helped by better infrastructure. Leasing is coming not only from IT and global capability centres but also from banking, financial services, insurance, and life sciences—with the life sciences sector alone seeing 60% growth in 2024.

The GST Council has announced major tax cuts on key construction materials such as cement, granite, and marble, aiming to reduce project expenses for developers and ease the burden on homebuyers. With GST 2.0, cement and ready-mix concrete will now be taxed at 18% instead of 28%, while bricks, tiles, and sand fall to 5% from 18%. Paints and varnishes will also come under 18% instead of 28%. These reforms take effect from September 22, the first day of Navratri, which Prime Minister Narendra Modi described as a “GST bachat utsav” during his address on September 21. The new GST structure has been simplified to mainly two slabs—5% and 18%—while luxury goods continue to attract a 40% levy. Earlier, GST was spread across four slabs: 5%, 12%, 18%, and 28%, with an additional cess on certain items. Industry experts say the reduction in GST on construction inputs could lower overall building costs by 3–5%, translating into about ?1,000 savings per square meter of construction. This benefit is expected to improve project economics for developers and make homes more affordable for buyers. G Hari Babu, national president of NAREDCO, welcomed the move and stressed that the gains from cheaper cement must be passed on to real estate projects. If the cement industry absorbs the tax benefit without passing it along, he warned that developers may seek government intervention. But if the benefit flows through, it could directly cut project costs, allowing developers to price homes more competitively, boost affordability, and build buyer confidence.

The central government has told states and RERA authorities to crack down on misleading real estate ads where builders and agents use “government-like terms” to make private projects look like official housing schemes. This is to prevent homebuyers from being misled. States and regulators must also submit reports to ensure buyers’ interests are protected. At a recent meeting of the Central Advisory Council (CAC) of RERA, chaired by Housing and Urban Affairs Minister Manohar Lal Khattar, members discussed this issue in detail. Officials even shared examples of such misleading advertisements, noting that the problem has been ongoing and needs urgent attention. The ministry highlighted that in some ads, promoters’ or publishers’ names were missing, which allowed builders and agents to bypass legal requirements like giving full project details. Many such ads, it said, appear to be circulated by real estate agents. The Forum for People’s Collective Efforts (FPCE) also flagged inconsistencies between project details on RERA websites, developers’ own sites, and approved plans, and urged the government to set up a system to remove such mismatches.

Tamil Nadu Chief Minister M. K. Stalin visited the Ungaludan Stalin grievance redressal camp in T. Nagar (Ward 133) on Friday. He instructed officials to give priority to petitions related to patta transfers, property tax, drinking water connections, ration card address changes, and farmers’ issues. He also told them to handle petitions from persons with disabilities with extra care and quickly resolve applications under the Kalaignar Magalir Urimai Thittam (KMUT) scheme. Stalin added that even if residents came after the scheduled hours, their applications should still be accepted and settled on time. During the camp review, he pointed out that services like issuing birth certificates, registering employment cards, and helping people open bank accounts were happening on the spot. He praised the initiative for bringing many government services together in one place. Residents said the camp was useful as they could easily access services and get problems solved faster. Most petitions were for enrollment in the KMUT scheme. Later, Stalin inaugurated the Kalaignar Centenary Building at the Highway Research Station campus in Kotturpuram, built at a cost of ?29 crore. He also launched the Tamil Nadu State Highways Authority and unveiled its emblem. Officials explained that the new authority will work to connect state highways with local roads, and improve safety and accessibility.

Banks are leaning on luxury homes to revive mortgage growth, creating bespoke loan products to tap into rising demand for premium housing in big cities or their outlying elite suburbs. "The premium segment is defying gravity and that is where the growth , business head of housing finance, . "Buyers want luxurious and larger homes; they want their second or third homes in Alibaug or Gurgaon. For us, home loans are a relationship product-we want to be a banking partner for the affluent segment through this journey." Luxury homes are typically defined as those priced above ?2 crore in Mumbai and Delhi, and ?1.5 crore in other metros. According to ICRA, luxury homes made up 34% of sales in Q1 FY26, up from 30% in FY24. A  showed the segment grew 85% year-on-year in the first half of 2025, with nearly 7,000 high-end residential units sold across the top seven cities. "Premium apartments remain dominant, with 3-4 BHK units now constituting 70% of value sold India. "In value terms, premium apartments accounted for 67% of sales in Q1, up from 59% in FY25. Even by area, they now make up 51% of the market." Crisil Ratings expects premium homes to account for 38-40% of new launches in 2025 and 2026. In contrast, affordable and mid-segments are likely to shrink to 10-12% and 19-20%, respectively, down sharply from 30% and 40% in 2020. Rising land and raw material costs have made these segments less viable for developers, tilting the market further toward luxury. 
 

Tamil Nadu Housing Board (TNHB) is positioning its new commercial complexes across Chennai as budget-friendly hubs, offering space at 88–118/sqft nearly 20% cheaper than private rentals with departments such as EPFO (Employee's Provident Fund Organisation) and GST among the first occupants. (which housed the old market) and Anna Nagar to govt bodies, including TN Real Estate Regulatory Authority. In addition, seven other complexes have come up in prime locations such as Ashoka Colony in KK Nagar, Mogappair, CIT Nagar, Arumbakkam, Ashok Nagar, Peters Colony, and Besant Nagar. With metro connectivity and central access, these sites are proving attractive to govt agencies struggling to find space. Sized between 7,000sqft and 18,000sqft per floor, the new complexes are pitched as modern, affordable alternatives to private rentals. "It's at least 20% lower than what private players charge. Few floors are still available, and we are scouting for probable tenants, including private companies," the official said. Meanwhile, TNHB hopes to attract bigger corporates with three upcoming projects: Peters Colony, Ashok Nagar near Udhayam Theatre, and Arumbakkam. The Ashok Nagar tower, with 22 floors, will combine residential units from the fifth floor upwards with commercial use on the first four floors. The Arumbakkam tower (33,245sqm) is almost complete with 11 floors and two basements, while Peters Colony (75,299 sqm) will feature 17 floors above three basements. To accelerate private sector participation, TNHB floated tenders to empanel consultants for feasibility studies, marketing strategies, and transaction advisory services, including bid management, for the Peters Colony, Arumbakkam, and Ashok Nagar projects," said B Ganesan, managing director (in charge). TNHB chairman Poochi S Murugan said about 70% of available space was already rented out. "All our projects have good connectivity. 
 

The Indian arm of the world’s largest asset manager has signed a new office lease for approximately 143,000 square feet at a co-working space facility located on MG Road in Bengaluru’s central business district (CBD). The 10-year lease deal carries a total rental outlay of ?410 crore, making it one of the largest flexible office space transactions in recent quarters.

“The lease, registered earlier this month, will begin on October 1, 2025. The tenant will pay a monthly rent of ?2.72 crore at ?190 per square foot, with a ?21.75 crore deposit. The agreement covers the G+5 floors of the building and includes a 5% annual rental escalation,” according to a lease document shared by a real estate platform.

The property is part of a larger 320,000 square feet acquisition across three towers in Bengaluru CBD, under a 15-year renovation and upgrade project aimed at offering premium managed workspace to enterprise tenants. As of March, the co-working operator managed 115 centres across 15 cities, overseeing 8.4 million square feet of space with 186,719 seats. Bengaluru accounted for 65 centres and 5.43 million square feet, solidifying its position as the operator’s largest market.

The company’s strong financial performance has also attracted investor interest, with an income of ?1,103 crore in 2024-25, earnings before interest, taxes, depreciation, and amortization  of ?660 crore, and a return on capital employed of 34.2%. Occupancy across steady-state centres was 86.5%, and the company maintained positive profit after tax.

India’s office market has seen flexible spaces become a mainstream category. According to a market research report, flexible leasing increased by 48% year-on-year in the first half of 2025, covering 6.5 million square feet and making up 19% of overall leasing activity. Bengaluru accounted for a third of this activity.

A home financing startup, which had previously secured $35 million in a funding round led by a prominent family office and a major Japanese financial services firm, has availed long-term financing through the issuance of non-convertible debentures (NCDs) with an alternative investment fund. The investment has been funded through a private credit-focused alternative investment fund. This financing will support the company's expansion in high-potential housing districts and enhance its capital strength.

The backing from the investment firm serves as a strong validation of the company’s robust credit architecture, inclusive business model, and disciplined growth strategy. Founded in 2018, the startup has enabled over 15,000 families to achieve homeownership through its mobile-first lending platform and is on track to double this number by FY26. Operating across 13 Indian states that collectively represent more than 85% of the national mortgage demand, the company is helping bridge the credit access gap in Tier II & III towns and peri-urban clusters.

A complete ban on commercial activities in a protected hilly region has been reiterated by a higher court, which confirmed the findings of an expert committee constituted by a national judicial authority. The committee’s ban included restrictions on resorts and hotels.

Individuals who purchased land in the area are permitted to retain ownership and engage only in eco-friendly cultivation that does not disturb wildlife movement and does not involve artificial barriers such as electrical, power, or solar fencing, according to a special bench of judges.

The court confirmed the committee’s findings, except for the recommendation to hand over private properties to the government.

The court directed the state authorities to notify all government-owned lands adjacent to the wildlife corridor, sanctuary, and buffer zones as reserved forest areas and to transfer them to the appropriate environmental department.

The court emphasized that, having officially notified the wildlife corridor to protect animal movement, the government must also balance the rights of private landowners and cannot remain inactive. Failure to act would result in landowners being unable to use their property for any purpose other than prohibited commercial activities.

Therefore, the bench instructed the state to acquire all private lands within the corridor, provide compensation to the owners, and carry out the acquisition in phases beginning within six months.

The real estate sector has hailed the 56th GST Council meetings decision to rationalise tax rates on key construction inputs as a landmark reform that could transform housing affordability and spur demand in the upcoming festive season. By lowering GST on cement from 28% to 18% and on granite blocks from 12% to 5%, the move is expected to ease input costs for developers, expected to ease input costs for developers, improve project viability, and accelerate housing delivery, particularly in the affordable and mid-income segments. Developers say the decdelivery, particularly in the affordable and mid-income segments. With homebuyers already returning to the market after two years escalation, the reduction in taxation is expected to provide much-needed relief and encourage fence-sitters to finalise purchase. Analysts believe the reform will also give developers more flexibility in pricing, enabling them to pass on benefits to consumers while maintaining margins. The housing sector, particularly stands to benefit from GST reduction on input materials like cement from 28% to 18%  and garnite blocks from 12% to 5 % as this will ultimately reduce home price for consumers and create sustainable demand across  segments. With input costs easing, developers expect improved project viability, faster delivery and renewed housing demand across markets. For homebuyers, the reform offers renewed hope of affordable prices and greater supply at a time when festive sentiment is at its peak.
 

The GST rationalisation will bring down the prices of cement by Rs 30-35 per 50 kg bag and lower the cost of construction, a report from India Ratings and Research (Ind-Ra) said. Last week, the GST Council decided to overhaul the current GST regime into a two-slab structure -- 5 per cent and 18 per cent. From September 22, cement will be taxed at 18 per cent, instead of 28 per cent now. The report said the revamp is a "structural positive" for the cement sector and could support demand in the affordable segment, which has been tepid in recent times. Ind-Ra believes companies will likely largely pass on this benefit by reducing selling prices which will help lower construction costs for infrastructure and housing projects. "With the rate cut likely to be passed on due to high competition, cement prices for consumers would soften while net realisations for cement companies may remain range bound. The price reduction for consumers could also lead to some upgrading to higher-value brands, benefiting tier 1 players. Over the capacity utilisation, Ind-Ra said the cement industry witnessed significant capacity additions in 1QFY26, with around 17 million tonne commissioned out of the 75 MT planned for the full year. Recent acquisitions and pending ramp-ups of underutilised assets by large players pushed industry-wide capacity utilisation to nearly 72 per cent, a marginal yoy decline,
 

The cost of building or buying your dream home may soon drop, as the government decided to lower the GST on cement to 18% from 28% during the 56th GST Council meeting yesterday. As per the GST notification, “Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not colored or in the form of clinkers,” will see their GST rate go from 28% to 18%, effective September 22, 2025. However, the actual savings for homebuyers will depend on when and how much of this benefit the cement companies choose to pass on. As Anupama Reddy, Vice President & Co-Group Head, ICRA Ltd, explains, “Rural housing will be a key beneficiary from the government’s decision to reduce GST on cement from 28% to 18%, since this tax cut translates into a 0.8%–1.0% reduction in overall construction expenses. The price benefit of Rs 26-28/bag will be transferred to the retail customer, without materially affecting the profitability of cement manufacturers.”

How does the GST reduction on cement bring down housing costs?

With GST on cement reduced from 28% to 18%, the total post-tax cost per bag of cement will come down, subsequently lowering the total construction cost for builders. If developers pass on this tax benefit, the per-square-foot prices of houses could come down. Experts suggest that lower construction costs translate into immediate price correction or more attractive pre-launch offers for consumers.
 Moreover, if an individual homeowner is in the process of building an under-construction house, the benefits will land more directly in their pockets in the form of lower GST on each cement bag and, hence, cheaper cement as raw material upfront. As CA Siddharth Surana puts it, “While most real estate developers opt for the 5% GST scheme without Input Tax Credit (ITC), and a large share of infrastructure projects are exempt or do not claim ITC, cement continues to remain one of the biggest cost drivers.” “This rate cut is therefore more than just a tax relief—it directly translates into lower project costs and improved cash flows and offers a strong boost to housing affordability and infrastructure development,” he continues. How will this move impact affordable housing? According to ANAROCK research, the affordable housing category (which includes properties priced below Rs 45 lakh) has seen its share of total sales decline from 38% in 2019 to just 18% in 2024. This GST rate cut, if translated into reduced home prices, will make the new homes more affordable to homebuyers. “The share of new supply dropped even more dramatically from 40% in 2019 to just 12% in the first half of 2025. The reduced construction costs, if passed on to homebuyers, can boost demand in these segments. India currently has a shortfall of nearly 1 crore budget homes in urban markets, and such interventions could help bridge this gap,” the research continues. As Reddy further notes, cement accounts for nearly 10-12% of total construction costs, particularly in rural housing.