Realtors block low return low cost housing project references

Mumbai: "Housing for all in 2022," Prime Minister Narendra Modi's vision may turn out to be with the developers to maintain a low-rent housing project, citing regulatory hurdles, high land costs and low returns makes such a project. "can not afford "a daunting task.

Currently, there are 1,878,000 rupees shortage of housing units in urban areas, but it is not cheap to attract developers to take the department before the land acquisition units are facing many challenges, soaring land and material costs and liquidity problems, experts say.

According to official data, 2,20,741 houses have been under like Nehru Urban Renewal Mission (JNNURM), Rajiv AWAS Yojana (light) and co-affordable housing different programs during the past three years, built in urban areas.

In terms of liquidity, he said, banks have been reluctant to fund real estate projects and private equity funds are expensive.


In order to attract foreign investors, the government has reduced the threshold of 50,000 square meters of building area to 20,000 square meters, and the smallest budget in half foreign direct investment ceiling of 5 million yuan.

The middle and high income housing available around Rs. 7,000-10,000 per square foot, the house will cost around Rs. 3000 per square foot

"Whether it is a low-cost project or middle or high income, in the purchase of land and construction costs, as required, but the rate of return is very low."


SOURCE : WEB