Builders less interested in affordable projects

Q: Why builders hesitate to develop affordable housing projects? What are the reasons behind this?

Chandan, Faridabad

8th July 2013

Real estate News in Delhi

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Many developers are building affordable projects.. but unfortunately, in most cases, the price of affordable projects is not any more affordable.

Bhanuprasad B, Noida

19th July 2013

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Developers complain that they get less profit in affordable projects. Factors like rise in construction costs, delayed permissions, high interest loans and shortage of building materials are posing major threats to affordable housing. In order to overcome these issues, there is a need to make changes in all policies related to land acquisition to lending.

Jeet Bhaskar, Delhi

18th July 2013

Comment

Affordable Housing has become very important now as it caters to the need of low income and EWS groups. Builders like Ansals, Unitech, Tata Housing, Jaypee, Wave Infratech, BPTP, Vatika, ATS, Siddharth, Skytech , Raheja, etc are coming up with these kind of projects.

Pranay Malhotra, Delhi-NCR

17th July 2013

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Sometime back the scenario was like this sir. But these days builders have been showing interest. Even govt is developing many affordable housing projects.

Naveen, Gurgaon

16th July 2013

Comment

Low profit margin is the main reason due to which builders show less interest in developing affordable housing projects. Consequently, the supply of affordable units is much less compared to the demand. Developers are much interested in luxury housing, due to the high profit margins associated with it. The profit margin can't exceed 15 to 20 percent in case of affordable projects while the margin is way above that in terms of luxury projects.

Shivshankar, Delhi-NCR

16th July 2013

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