Affordable Homes Have Become (Un)Affordable Homes

News Posted - 2010-03-15

Affordable Homes Have Become (Un)Affordable Homes

Due to rising inflation and overall price increase of raw materials and services, property rates have started increasing in key markets, making affordable homes unaffordable. Developers have jacked up property prices by 10 to 35 per cent in the last few months following a series of stimulus packages and the economic revival. Developers had launched around 300,000 affordable homes across India 15 to 18 months ago to tide over the glut in the property market and mop up resources to pay back debt. However, only a few projects have been implemented, say experts. "Launching affordable housing was a gimmick to show high sales. No delivery has started so far. Even work has not started in most projects," said Mr Pankaj Kapoor, CEO, Liases Foras, a property research firm that tracks projects and prices. 10 March 2010 Hindustan Times

DLF Likely To Miss Residential Sales Goal

DLF Ltd is likely to miss its annual residential sales volume outlook as it moves to launch projects in its non-stronghold regions, according to analysts. The realtor was looking to sell 16 million square feet of residential properties in the fiscal 2010, and by December it was able to sell only 8.5 million sq ft of properties. Now, with just a month left for the fiscal, analysts believe DLF may not be able to meet its target. About 65% of the 8.5 million sq ft project launches were city-centric, and 70% of the sold volume came from the National Capital Region. About 47 % of NCR sales volumes came from a single city-centric project, Capital Greens. The company’s property sales picked up recently across projects in Gurgaon, Kochi, Bangalore and Hyderabad. However, analysts assert the pace of sales has not met with their expectations. 9 March 2010 DNA

Prefabricated Housing Plant Planned By Purvankara

Puravankara Projects Ltd is looking forward to set up a prefab housing factory in Bangalore. The facility is going to come up close to the site of its affordable housing project and its cost is going to be around Rs 40-50 crore. The firm's low-cost housing subsidiary Provident Housing has already acquired the technology for prefabricated housing from Singapore-based Subarna International Consultancy Pvt Ltd. The company's low-cost housing arm is on a lookout for an international home builder engaged in the affordable housing segment to speed up its project delivery to 10-12 months through use of technology. This move would also help it widen its reach in low-cost homes to Rs 8-22 lakh from the current Rs 15-22 lakh. 12 March 2010 DNA