New Delhi: Gurgaon, known for its luxury and premium properties, is fast emerging as a hub for homes that cost Rs 10-20 lakh, with developers lining up a number of projects under the Haryana government's policy for affordable housing.
As of September this year, the Haryana government has received as many as 122 applications from developers for launching affordable housing projects under a policy unveiled last year. DLF, which is known for its upscale housing, has also applied for three such projects, though it later withdrew two applications and one is under examination by the state government, according to data from Haryana Town Country Planning Department.
In Gurgaon alone, 63 applications were received till September 2014 and 16 in Sohna (extension of Gurgaon). The national capital region, especially Gurgaon, and Mumbai are the two largest property markets in India.
Noida-based Supertech announced its first affordable housing venture in Gurgaon on Friday, while Raheja Developers had unveiled its first affordable project in Sohna a few weeks ago. Other developers such as Pivotal, SRS and Ramada have also launched their affordable projects in the area and there have been many quiet launches by smaller developers, according to experts tracking the sector.
Supertech will invest around Rs 700 crore in two affordable projects in Gurgaon. Its Basera project, announced on Friday, is located in sectors 79 and 79B in Gurgaon. Out of a total 1,976 flats, 95 per cent would be allotted to the public through a lucky draw.
Raheja has unveiled Krishna Housing Scheme in sector 14 at Sohna and the homes will be priced at Rs 15-23 lakh.
"Gurgaon would soon become an affordable housing destination. Our project would specially help first-time homebuyers, who are struggling to buy a property due to current price escalations," said Supertech's Chairman and Managing Director R K Arora.
A Gurgaon-based realty expert said that since the overall real estate market is facing a slowdown, developers are flocking towards affordable projects as it will give them a surety in terms of margins. "The demand for affordable housing is around 50 million, whereas the supply is just 50,000 units. Developers are banking on the demand-supply mismatch and expecting a good number of sales. This might create another boom in the affordable space."
According to the affordable housing policy notified in the second half of 2013, the carpet area will range from 28 to 60 sq mt (301.39-645.83 sq ft) and price has been fixed at Rs 43,000 a sq mt (Rs 4,000 a sq ft) in Gurgaon, Faridabad, Panchkula, Pinjore-Kalka and across the rest of the state at Rs 38,750 a sq m (Rs 3,600 a sq ft). However, at least 50 per cent of the apartments have to be built with a carpet area equal to or less than 48 sq mt (516.67 sq ft).
Carpet area is the actual usable floor area of an apartment excluding the area covered by wall or any balcony.
The total area of an affordable project will be between five and 10 acres. The projects will have to be completed within four years. The flats would be allotted through a draw of lots. The licence fees and other such charges such as infrastructure development charges associated with the project, to be borne by the developer, have been waived off by the state government.
The floor area ratio for these projects have been increased to 2.5 times against 1.75 permitted in normal group housing projects, while ground coverage has been raised to 50 per cent against 35 per cent allowed in normal group housing projects. Any person who does not have any prior home under Haryana's state government licensed colony / Haryana Urban Development Authority developed colony can apply under these projects. The density norms have also been relaxed with 850-900 persons per acre from the earlier limit of 300.