Affordable housing projects line up in Gujarat
Gujarat- The real estate industry and the state government is all set to develop large number of affordable residential units in various regions of state.
The state government has promised to initiate work for developing 120,000 homes for the poor and homeless people of the state for the year 2013-14.
Government has allocated a total amount of Rs 1,650 crore for the rural housing which includes Rs 1,062 crore for regular houses to Below Poverty Line (BPL) families. The work of developing affordable houses will begin after the completion of statewide survey of the slums and mud-houses by March end 2013.
Some of the reputed real estate players of industry have announced low cost housing schemes for Lower Income Group (LIG) and Middle Income Group (MIG). These include Tata Housing, Adani Township & Real Estate, DBS Affordable Home Strategy Ltd. and Arvind Real Estate.
It is found that almost all developers are serving low and middle income group which falls in the subcategory of Rs 20 lakh.
Recently, city based developer DBS Affordable Home Strategy Limited announced a residential project which will offer affordable homes (subcategory Rs 10 lakh to Rs 15 lakh ) in next five years. Currently, DBS is developing 25,000 affordable homes in 14 different parts of Ahmedabad. It is offering one room Kitchen and two room Kitchen apartments in the price range of Rs 5 lakh to Rs 10 lakh.
It is observed that the rate of conversion is highest in affordable housing segment as compared to mid-premium or luxury segment. The demand of affordable house has been increasing which has attracted many real estate players.
Adani Township & Real Estate is about to complete its affordable housing project named “Pratham” in Ahmedabad. This project comprises of 800 residential units in three phases. It offers one and two bedroom apartments of size ranging between 650 sq ft to 900 sq ft which are priced between Rs 16 lakh to Rs 22 lakh.
Similarly, Smart Value Homes (part of Tata Housing) and Arvind Real Estate are jointly developing a affordable housing project named “New Haven Compact” in Ahmedabad. This project offers one bedroom apartments of 570 sqft. There are total 300 residential units which are priced at Rs 13.5 lakh each.
According to JLL, the rate of conversion is highest in affordable housing segment which is especially prevalent in the Rs. 10-15 lakhs sub-category. This segment has seen a continuous growth of over 15 percent as compared to other segments of residential property market in Ahmedabad.
Affordable housing results in quicker sale with less margin. But few consultants believe that affordable housing can be profitable if the project is planned on a larger scale with fast delivery.
As per a survey, the Ahmedabad city will witness a healthy demand of two million affordable homes in the range of Rs 5 lakh to Rs 15 lakh.
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