Steady demand, coupled with decent margin is attracting more and more new developers to invest in affordable or low-cost housing segment  Affordable housing, at present, is seen to be drawing more and more new developers who are keen to invest in this budding segment on account of the increasing demand for dwelling units in urban India. The country is suffering from a huge deficit of around 25 million houses. Changing scenario
Low-cost housing emerged as the preferred choice among most developers during the economic slump. However, the segment witnessed a drop in interest levels among developers (primarily big players) as markets matured and buyers moved up the value chain. “Low profit margin also played a big role in discouraging developers from cashing in on the affordable housing segment,” opines Noida-based realty analyst Anuj Sharma.
On the contrary, new entrants are finding the segment lucrative due to the consistent demand. These developers further believe that decent margin is achievable by deploying latest technology and reducing construction time.
Note the launches
Value and Budget Housing Corporation (VBHC), a new corporate entity, recently launched an affordable housing project titled ‘Vaibhav’. Spread across 16.1 acres in the outskirts of Bengaluru, this low-cost housing project comprises 1,900 apartments that are priced within the range of Rs 4.5-12 lakh. Furthermore, the company intends to develop 1 million affordable houses over the coming 10 years. Apart from tier I cities such as Hyderabad and Chennai, VBHC is also looking at tier II cities like Nashik and Baroda for building such projects.
Bengaluru-based Rajesh Exports Ltd (REL), a leading jewellery manufacturer and exporter, is also planning to foray into the real estate sector with projects in the affordable housing segment.
On the brighter side, steady demand in this segment is prompting some established players to launch low-cost housing projects. Dharmadev Infrastructure Pvt Ltd, a reputed developer in Ahmedabad, is one such company. Speaking about the company’s large-scale development in this segment, chairman Umang Thakkar in an exclusive telephonic interview with a TJCD correspondent said, “We launched close to 5,000 affordable houses this year in Naroda, Narol and Vasna in an endeavour to cater to the demand-supply gap.” Established in 1990, the company is into residential as well as commercial real estate.
Janaadhar Constructions Pvt Ltd, another real estate firm in Bengaluru, has recently launched a project in this segment named ‘Janaadhar Subha’ comprising 1,140 apartments.
Jeeta Bandopadhyay |
