GURUGRAM: When Gurgaon-based developer Signature Global launched affordable housing projects in Gurgaon last year, it received 8,000 applications for around 1,900 flats in eight projects. Other developers, too, report of similar response, largely due to the huge supply-demand gap in the segment. According to sources, affordable housing is the sole bright spot in an otherwise shaky real estate market, with demand far exceeding supply in Gurgaon.
As per Gurgaon Master Plan 2031, only 5% of total area in the city’s sectors is reserved for affordable projects, of which, licenses have been issued for projects covering around 250 acres. Currently, around 35,000 units are being constructed in Gurgaon, with another 24,000 in the pipeline. Developers with affordable projects include Signature Global, Tulip Infrastructure, Supertech Limited, Pivotal Projects, Pyramid Infratech and Raheja Developers.
“Gurgaon has a huge demand for housing due to the city’s high employment rate. A chunk of home-buyers are 30-somethings looking for affordable housing. But supply is low,” said Pradeep Agarwal, chairman, signature global.
Ashwinder Raj Singh, CEO of Anarock Property, said, having already invested in mid- to high- end projects (Rs 60 lakh to above Rs 1 crore per flat), developers have their hands full. “But demand is in this segment, within the Rs 20-50 lakh price bracket, is high” he said.
A grouse among realtors is that while the Centre has given the segment infrastructure status, and the Prime Minister has been campaigning for the cause, the state government has failed to back up with similar measures. The Gurgaon developer’s body has been asking the government to increase land bank for affordable projects. “We’ve sent multiple representations to the state government, which assured us land for this segment would be increased to 500 acres, but the decision is still pending,” said Praveen Jain, MD, Tulip Infrastructure, and president, NAREDCO.
He added developers had insisted that given the scale of demand, cap on land availability for affordable housing in Gurgaon be removed, but the state government had only considered increasing land area, on which, as per sources, Haryana is likely to issue a notification soon.
There are other issues facing the segment though, said developers, with delay in approvals the biggest impediment. TOI had earlier reported that around 30 licence applications for affordable housing, on around 165 acres, are with the state for clearance for nearly a year.
“Margin is extremely thin in this segment, and delays render projects non-viable. Once hit, a developer will never again invest in this segment,” said Agarwal. DTCP’s principal secretary couldn’t be contacted for his response on the issue.
Shubhra Pant| TNN | Updated: Sep 19, 2017, 13:55 IST (Source – Times of India)
