Essel Group to build 2 lakh affordable homes by 2022
The affordable homes would be launched under the brand name 'ASHA (affordable shelter housing for all) 2022'.
Nov 10, 2015
Source : ET
Subhash Chandra

 

NEW DELHI: Diversified business group Essel today announced its foray into the affordable housing segment with plans to develop 10,000 homes next year entailing an investment of Rs 800 crore. 

The Subhash Chandra-promoted group is targeting to build 2 lakh homes across the country by 2022 in line with the government's vision of 'Housing For All' by 2022. 

Essel Group already has presence in the real estate sector through Suncity Projects (P) Ltd. 

Chandra said the first project will be launched next month in Panchkula, Haryana at about Rs 1,500 per sq ft. The starting price of a flat will be Rs 15 lakh. 

Besides, the company plans to develop affordable homes in Hisar, Bahadurgarh and Rohtak in the first phase. 

"We are entering into the affordable housing as there is a huge demand in this segment. We will develop 10,000 affordable homes in 2016 and the target is to construct 2 lakh homes by 2022," Chandra told reporters here. 

The affordable homes would be launched under the brand name 'ASHA (affordable shelter housing for all) 2022'. 

The project cost for 10,000 homes would be Rs 800 crore and the same would be funded through internal accruals and advances from customers against sales, the company said. 

Chandra said, the group will ramp up the construction capacity every year and meet its target of 2 lakh flats by 2022 with focus on fast construction, less margins and timely delivery. 

Essel Group is in talks with a Japanese construction company for developing these projects. 

"We will be tying up with a Japanese construction firm in the next 2-3 weeks," Chandra said without disclosing details. 

The group would develop these projects through dedicated special purpose vehicles (SPVs) for each state. For Haryana, the group has shortlisted a partner and it is looking for entrepreneurs for other states like Uttar Pradesh. 

Asked about the land bank, Chandra said the group would undertake outright purchase of land and also form joint ventures with land owners to develop the housing projects. 

Chandra said it is the best time to enter the affordable housing with real estate sector facing demand slowdown. 

Essel Group has presence in various sectors, including media, entertainment, packaging, infrastructure and education and technology among others. The group's listed entities have a combined market capitalisation of over USD 6 billion. 
 

Latest Realty News

Embassy-group-ties-up-with-Cornerstone-to-develop-property-
Nov 10, 2015
BENGALURU: Real estate developer Embassy Group has entered into an agreement with Cornerstone Group, a leading Bengaluru-based property group, to develop a 100 acre land parcel here.
Dubai-real-estate-players-bullish-about-high-Indian-investment-
Nov 09, 2015
DUBAI: Leading real estate players in the Middle East are bullish about Indians continuing as the most prolific foreign investors in the sector in the coming months too, as official statistics show that Indians have invested over Rs 30,000 crore last year alone here in properties.
Should-you-make-your-portfolio-real-estate-heavy?-
Nov 09, 2015
Shalu is a professional, earning a high salary. She has invested a lot in property—land, an apartment and a house in her native place—as she feels real estate is a good investment option. Buying property gives her an emotional high and leaves her feeling content.
Real-estate-developers-eye-tax-relief-on-deemed-rental-income-
Nov 07, 2015
NEW DELHI: The developers' concerns over the tax provision wherein they are required to pay tax on deemed rental income on unsold apartments may be addressed in the coming Budget.
Real-estate-investments-lukewarm-this-festive-season:-Assocham-
Nov 07, 2015
NEW DELHI: Notwithstanding the 125 bps rate cut by RBI this year and offers made by developers, investment in the real estate market has remained lukewarm in and around Delhi-NCR primarily due to the lack of confidence in the economy and project delays, a survey has found.
Sobha-Group-to-set-up-residential-projects-in-London-
Nov 07, 2015
MUMBAI: Sobha Europe is looking to build residential projects in central London and has identified six redevelopment projects in the city for this, Raj Chinai, MD, Sobha Group told ET.
Real-estate-company-Nitesh-Estates-swings-to-second-quarter-loss
Nov 07, 2015
BENGALURU: Real estate company Nitesh Estates swung to a quarterly loss from a year earlier profit, hurt by a substantial drop in residential sales.
China-interested-in-developing-Bengal's-infrastructure:-Mamata-Banerjee
Nov 06, 2015
KOLKATA: The Chinese government has expressed keen interest in enhancing economic activity with West Bengal as the state is both economically and geographically close to China, West Bengal chief minister Mamata Banerjee said today.
CWG-Village-builder-Emaar-MGF-to-be-penalised
Nov 06, 2015
NEW DELHI: Delhi Development Authority (DDA) has decided to penalise the project developer of the Commonwealth Games Village for violation of FAR norms.
Property-dealers-looking-to-invest-in-office-segment
Nov 06, 2015
MUMBAI | BENGALURU: With commercial real estate showing signs of recovery, property developers that had stopped investing additionally in this segment are now looking to invest in office projects. The rising interest is this space has been generated by better demand outlook and constrained supply of grade A office spaces as most developers did not launch any major office projects since 2009, given the weak uptake until recently.

Latest Realty News Of State

Realty Talk's