Gurgaon likely to offer housing at Rs 12 Lakh
With the Haryana government proposing a new policy to encourage affordable housing project, few private developers have come up with affordable housing projects in Gurgaon.
Leading developers like Raheja, Ramprastha and Unitech have been planning to foray into Gurgaon’s affordable housing segment which would provide better housing options to the buyers of the economically weaker section (EWS). The policy is likely to encourage private developers to come up with more and more affordable housing projects that can probably have some good impact in urban centres of Haryana. However, few players like DLF are showing no interest in the affordable segment.
Some developers who are already looking at this market said that, though till now, Gurgaon was witnessing huge demand for its mid-end and luxury properties, now it can also get properties with a price tag of around Rs 12 lakh.
Raheja Developers is coming up with two affordable projects in Gurgaon following the introduction of the government’s policy. This will be the first venture of the developer into affordable housing, and it wants to go strong on it. As per sources, Ramprastha and Unitech are also looking for options to launch projects under the new policy. Unitech group has already launched affordable projects using its brand name ‘UniHomes’ in Noida (Sector 113 and Sector 117), Mohali, Rewari, Bhopal, Ambala and Chennai.
According to real estate analysts, the policy unveiled by the Haryana government seems to lead to a real estate boom in the state as the demand for affordable housing is huge. In a place like Gurgaon, where low income group (LIG) buyers do not find properties less than Rs 20 lakh will now be able to own a flat in a far less amount of Rs 12 lakh, which is astonishing.
This move will bring in another real estate boom in the state as there is a huge demand for affordable housing. While there is a mounting demand for units in affordable segment, the present supply is merely 50,000 units.
A mid-end property in Gurgaon would cost at around Rs 7000 to 8000 per sq ft. But the projects that are coming up under the policy, would be priced around Rs 3,600 per sq ft. The price has been fixed at Rs 4,000 per sq ft for projects in Gurgaon, Faridabad, Pinjore-Kalka, Panchkula, and Rs 3,600 per square metre is set in the remaining areas of the state.
The carpet area for units in these projects will be ranging between 28 sq m to 60 sq m. At least 50 percent of the units will be built with a carpet area equal to or less than 48 sq m (516.67 sq ft). The developers launching projects under this policy will be provided licences and the projects have to be completed within four years from getting all the requisite approvals.
However, not many developers seem to be interested in developing affordable projects though certain incentives are being offered to attract them such as exemption from licence fees and infrastructure development charges, permitting higher floor area ratio (FAR) of upto 225 against 175, etc. The builders, in the recent years, find luxury housing far more attractive than low-cost housing since it offers better margins. But if one digs more deep, it can be estimated that the area and development cost required for one proper luxury unit along with its exclusive amenities, would be similar to that of developing around 5-10 affordable housing units offered with basic amenities. Based on this calculation the developers may or may not incur any loss even if they build and sell projects comprising of affordable units, though it depends on various factors.
Since Gurgaon is very costly for LIG buyers to own a house, affordable housing projects are currently in huge demand. It is important that the developers address this demand and cater to it.
