Hiranandani Communities is entering the affordable housing segment in a big way, said a top executive.
“We are entering the affordable housing segment by constructing 500 dwelling units at Oragadam integrated township,” said Niranjan Hiranandani, chairman and managing director, Hiranandani Communities, a Mumbai-based realtor. “The project will come up on our own land.” According to Mr. Hiranandani, the building plan for the affordable houses near Chennai will be submitted in the next two to three weeks. The approval is expected to come by the year end and construction would begin by the end of the first quarter of 2018-19.
Land area
“We are setting aside 10 acres of land. Each house will measure about 40 sq.mt. to 60. sq.mt. We have pegged the construction cost at ₹3,500 per sq.ft., and it would cost ₹20 lakh approximately. We will start with 500 dwelling units and scale it up depending on the demand,” he said.
Besides, Hiranandani Communities will also start constructing affordable houses in Panvel in Maharashtra. Currently, it is on the drawing board. The developer is also planning to construct a Special Economic Zone (SEZ) at the Oragadam Integrated Township, spread over 25 to 50 acres. It will basically cater to the IT and IT-enabled sector, disaster management, data centre and allied activities. “To kickstart the programme, we are eagerly looking forward to the forthcoming Union Budget for benefits extended to SEZs beyond 2020. The drawing plan for SEZs will be ready within the next 30 to 45 days for submission. We hope to get the approval in 60-90 days and this project would also start by the end of first quarter of 2018-19,” Mr. Hiranandani said.
To make the housing sector affordable, the National Real Estate Development Council (NAREDCO) has urged the Centre to slash GST on the sector from the present 12% to 6%.
Mr. Hiranandani, who is also the NAREDCO president, said: “Under the new tax regime, real estate comes under the tax bracket of 12%. But the consumers end up paying over 30%-35% including sales tax, stamp duty and various development charges.”