Pune Nano Units, Two Top Big Developers Enters Affordable Housing
A 1BHK unit crunched into less than 300sqft or a 3BHK flat not exceeding the 700sqft mark small is turning out to be a big draw for top developers entering the affordable housing sector in Pune. The incentives for the developers opting for such Pune nano units are not only the tax benefits but also the opportunity to get going in a market that is taking baby steps to recovery after a prolonged slowdown.
Two top developers, who have so far only focused on big projects and commercial real estate development, recently announced their foray into affordable housing.
Mumbai-based Peninsula Land launched a project at Gahunje, where it aims to construct 51 four-storey building blocks with each floor housing four units. Peninsula Land’s smallest unit is pegged at 274 sqft, in which it will put out a 1 BHK unit and its largest offering is a 3 BHK with about 671sqft carpet area.
Recently, Pune-based Vascon Engineers forayed into the segment with the plan to have a “focused business approach” on affordable housing. The company said it will, over time, build 1,140 units in Talegaon in sizes between 227 sqft for a room-kitchen unit and 2 BHK flats measuring 462 sqft.
At the lower end of these offerings, the unit sizes are smaller than what is being proposed to be offered under the slum rehabilitation authority (SRA) of over 300 sqft. The current SRA size is 269 sqft.
Developers engaged in the segment for long said the reason for this is the similar business model adopted by players as they do for regular housing and the frequent changes of definition by the government.
Multiple players are into the housing the same way they had done in the past. And by squeezing sizes, they are calling the projects ‘affordable housing’ now. All of this is primarily aimed at attracting faster sales and reaping benefits of the 80I BA (tax sops), said Vastushodh managing director. Vastushodh has so far delivered over 3,000 low-cost homes in and around Pune.
He said the dilution of the definition of affordable housing units by the government “further helps the new developers doing such projects. The government has in two successive budgets changed the contours of what is “affordable”. It has shifted focus from the income to the size criterion.
Experts, however, feel that the income criterion was a better way of targeting buyers as only those within a certain income range can purchase such units. These homes are priced between Rs 13 lakh and Rs 38 lakh and this range makes it easy for investors to pump money into these projects, with the hope to cash out at an appreciated value.
On the other hand, these properties are far from the heart of the city and carry a lower sale price tag to make it appear attractive. The per square feet rate, however, works out to be more or less same as what one can get a property in most parts of the city (between Rs 4,500 and Rs 5,000 per sqft).
In the interim, the developers are making up for Pune nano units by reducing the home sizes. We need innovation in planning, designing of spaces and interiors. As far as space is well defined and liveable, size does not matter MD of Vastushodh said.
Source Link- https://timesofindia.indiatimes.com/