BENGALURU : With the government announcing a host of incentives and tax benefits for affordable housing projects to support its goal of ‘Housing for All by 2022’, realty developers are coming up to build more compact homes, with some even tweaking their plans and re-configuring the proposed projects into affordable homes.
Among the major benefits, including tax incentives, the government has also accorded infrastructure status to affordable housing, a move that will allow developers of such projects to get access to institutional funding at better terms.
Following these affordable housing related announcements by the government, Mumbai-based realty developer Paradigm Realty has modified its project in Borivali suburb with all 400 apartments with 1-bedroom configuration. The developer offered apartments with 350 to 380 sq ft carpet area at . Rs 60-63 lakh.
“Developers are opting for affordable segment for better management of cash flows that in turn has positive impact on site (construction) performance and higher velocity of sales,” said Parth Mehta, MD, Paradigm Realty. “There’s genuine demand in this segment and sales velocity is quite high. Out of the 300 apartments launched, we have been able to sell over 200 in the last three months.”
The trend is catching on as apart from developers’ performance and flexible payment plans, ticket size is a crucial factor driving homebuyers’ decision-making, and ultimately, sales conclusion.
Bengaluru-based builder Krishna Homes recently re-configured its project in Electronic City to affordable homes from mid segment. Earlier the project had apartments spread over 900 sq ft and was priced at Rs 40 lakh each, but will now be priced at Rs 28 lakh spread over 750 sq ft.
“We have reapplied for sanction of the project as there is more scope in affordable homes segment. Going ahead, this will be the focus area,” said a senior official from Krishna Homes.
Prestige Estates Projects and Century Real Estate in Bengaluru are also realigning some of their projects. “There are lot of advantages for new buyers and the market is moving towards affordable segment with Central schemes,” said Ravindra Pai, MD of Century.