Vakil Latest To Jump Onto Affordable Housing Bandwagon

City-based Vakil Housing Development Corporation has become the latest entrant into the market to develop affordable homes as the real-estate industry tries to cope with a downtrend in demand.

A senior official of the company said that the move is part of its strategy to increase its residential real estate development footprint across the southern metros. To begin with, it plans to launch two low-cost housing projects on the outskirts of Bangalore – close to the airport in the north and off Hosur Road in the south-where it already has banked land, co-director Mohammad Ali Vakil said.

A prominent layout developer, Mr Vakil has so far developed 8.8 million square feet of land in and around Bangalore. “Having weighed various options, we decided to foray into mass housing projects as the space is quite untapped. Almost every developer has projects in the Rs 40-60 lakh bracket, apart from premium housing, and it therefore doesn’t make sense for us to do the same.

The demand for homes priced below Rs 40 lakh is huge and presents a large opportunity for us,” Mr Vakil said. The housing ministry estimates shortage of homes to go up to 26.53 million by 2012, most of it among economically-weaker sections and low-income groups.

One Comment

  1. Posted September 19, 2008 at 1:19 am | Permalink

    Increasing interest rates and rising construction costs are changing the mood of many aspiring homebuyers, because of which real estate developers are changing their strategy to keep their business going. They are now switching either to so-called affordable housing projects or high-end customers, who mostly buy cash down or with limited amount of borrowing. Many developers are opting for low-cost housing – the latest to come on board is Bangalore-based Puravankara Projects, which is planning to build 65,500 low-cost flats in five southern cities over the next five years. Realty major, Omaxe is building 1 lakh houses across cities in northern India – the flats would be priced between Rs 1,000 and Rs 1,100 per square foot. “Most large developers have now woken up to the fact that affordable housing projects have the fastest absorption rates and are focusing on this,” said Mr. Anuj Puri, chairman of realty consultancy company, Jones Lang LaSalle Meghraj.For more view-

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