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Tata Housing sets sights on Rs 15-20 lakh affordable homes again

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Tata Housing sets sights on Rs 15-20 lakh affordable homes again

The Mumbai-based firm will also start deploying capital from its two platforms with CDC-IFC and Macquarie

Bengaluru: After focusing on premium housing for several years, Tata Housing Development Co. Ltd plans to resume building homes costing Rs15-20 lakh, after incentives in the Union budget made low-cost housing more attractive for builders.

The Mumbai-based firm builds affordable homes under Tata Value Homes and premium and luxury homes under Tata Housing. Within Tata Value Homes, its entry-level homes are under Shubh Griha, and the slightly more expensive homes under New Haven at Rs25-60 lakh.

The Union budget on 1 February proposed infrastructure status for affordable housing projects to facilitate higher investments in the sector. It also proposed a 100% tax deduction on profits for building houses of up to 30 sq. m and 60 sq. m in carpet area in the top four cities and the other cities.

“After being quiet on Shubh Griha, this year we plan to build more homes in the lower end of Rs15-20 lakh. We haven’t been able to do such projects in the past two years from a profit perspective and because of land availability issues; but because of the tax breaks and other incentives announced in the budget, we want to return to this segment,” Tata Housing managing director and chief executive Brotin Banerjee said.

Between 2009 and 2014, when it launched its first Shubh Griha project at Boisar in Maharashtra and the last phase of its Ahmedabad project, the realty firm has delivered some 4,000 homes.

Tata Value Homes has a $90 million investment partnership with The International Finance Corp. (IFC) and CDC, UK’s Development Finance Institution (DFI) and The International Finance Corp. (IFC) to provide affordable housing for low-income households. It also has an equity platform of around Rs2,000 crore ($307 million) with Macquarie Infrastructure and Real Assets (MIRA), a part of Australia’s Macquarie Group Ltd. The developer will begin to deploy capital from the two funds and close its first project transactions this year.

This year, Banerjee said it will start deploying capital from these corpuses and close at least a project each from both these platforms.

“The strategy is to maintain a diversified portfolio where we will build low-priced homes but also build homes in the Rs1-2.5 crore segment, which have performed well. However, we will have to chase profit rather than focusing on boosting market share. If needed, we can drop market share,” he said.

Housing shortage at the beginning of the 12th Five-Year Plan (2012-17) was estimated at 18.78 million, according to a report by the ministry of housing and urban poverty alleviation.

The Union budget also proposed that for joint development agreements signed for development of property, the liability to pay capital gains tax will arise in the year the project is completed.

The deferment of capital gains tax on JDAs would help reduce the cost of land for developers. Also, reducing the long-term capital gains holding duration from three years to two years will help bring transparency in transactions in the secondary market.

The government’s aim is to complete 10 million houses for the homeless and those who live in kachha houses by 2019.

“Affordable housing is the need of the hour but in India, it is still a business where people are trying to learn the ropes of the business. The success in doing affordable housing will depend on developers creating independent entities dedicated to build low-frill homes, separate from their regular business,” said Gulam Zia, executive director, advisory, retail and hospitality, Knight Frank India.

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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