In a move that will benefit home buyers to purchase houses at reasonable prices, the Haryana government has unveiled a new housing policy. As per the scheme, the government will put a cap on the price of the houses built by realtors. In return, builders will be permitted to build more housing properties in smaller sizes in the same vicinity.
The state government has also announced several incentives including density norm relaxation and a higher coverage area for real estate developers. According to government officials, the government has raised the ground coverage area to 50% from the existing 35%. According to realtors in the region, this move will lower their overall project costs as construction costs are generally lower in the low-rise buildings.
.gif) Realtors welcome the scheme
Although the scheme will fetch minimal margins, property developers have welcomed these announcements saying that these measures will augment demand for low-cost housing units. “The revised policy will help developers to launch new projects and increase their cash flow,” feels Sushil Kumar Mathur, Managing Partner of Sunehri Bagh Builders Pvt Ltd, a Delhi-based property developer.
Realising the demand and potential of low-cost housing in the region, the state government has decided to initiate efforts to keep housing prices to the minimum. Therefore, under this new scheme, prices of houses with a carpet area of 350 square feet have been kept at Rs 4 lakh across the state.
Affordable housing in demand
The Rs 4-lakh houses have been earmarked for below poverty line (BPL) families and grade IV staff of the state government. Anticipating a massive rush for the limited number of houses, the government has decided to hold a lucky draw to select the allottees.
Significantly, the real estate industry in the national capital region (NCR) had taken a beating due to the demand slump. As a result, property developers have been focusing on budget housing to mitigate losses.
Vipin Arora, MD of Arora Construction Pvt Ltd, a real estate firm in the NCR, concludes, “With the demand for luxury housing plummeting to a record low, property developers are exploring the low-cost housing option. In this regard, government initiatives like these will play a major role in reviving the fortunes of the embattled property developers.”
Shubhomita Bose |
