Gurgaon developers hunt for cheaper land & technology to offer affordable housing
Gurgaon: Builders are scrambling to acquire cheap land and technology for low-cost housing after the government and central bank announced incentives for affordable housing, including cheaper loans to developers and buyers.
Real estate Developers including Raheja, Adani , Tata Housing, ATS Infrastructure, Bharti Group and Anantraj Industries, Mahindra and Godrej etc are busy sewing up land deals for projects in the Rs 5-20 lakh home segment. There is unlimited demand for affordable housing.
“There is a large market for such homes but a big shortage in supply is their as well,” said Shailesh Pathak, executive director of the Bhartiya Group, which is planning to build 10 Thousand low-cost homes over the next two-three years on a 50-acre land near Chennai. Its larger plan is to upscale this to a million homes in the next decade across the country.
According to the ministry of housing, India faces a shortage of 18.78 million homes, of which 96% is in the economically weaker and low-income segments. The challenge for builders is to find cheaper land that makes it economically viable for them to build such homes. Such lands, however, are only available away from the cities, where, in most cases, there is a lack of transport facilities.
What is also required in this segment is a way for the builder to keep cost of construction in check, which can be achieved by adopting technology to speed up construction.
Pre-cast where a house is literally manufactured and then assembled on site Is being looked as one of the option br many developers. The Pre-cast technology will Can save on both time and cost.
What conventional construction achieves in three to four years, this technology does in two to three years. The one year saved translates into cost benefits.
Korea has been successful in providing mass housing, while Mexico and South Africa have interesting success stories. with these technologies . Same things can be adopted by the indian realty market.
Guragon-based developers are selling apartments priced 4000/sqft charged at carpet area, under Huda affordable housing Scheme. And central Government Plan for Housing for all.
“This is a volume game, with very thin margins,” Anand said. Builders are working on different models. Anantraj Industries, for instance, secured cheap land from the Rajasthan government in Neemrana, but on condition that the company would not sell houses over a certain price. It built 2,300 homes with one room, toilet and kitchen in the industrial area and sold them at Rs 8-9 lakh each.
Now several developers in Gurgaon are looking at buying cheap land and some are even open to revenue share and joint developments for projects with owners of land in good locations. But there is a word of caution.
While the government has articulated a clear vision for housing in the budget this month, apart from cheaper capital and land, approval delays and regulatory hurdles need to be sorted out.
“Any delays could severely impact such projects because of the thin margins they operate on,” said Vishal Gupta, managing director of Ashiana Housing.
For more inqury about Gurgaon Real estate market, Call Ritesh Agarwal, 96503-44336, Winworld Realty Services.