NBCC set to trigger price war
The Economic Times, May 28, 2009, Page 7
GOVT-OWNED DEVELOPER TO OFFER 30-50% CHEAPER FLATS
Anto Antony NEW DELHI
IN A move that could trigger deep cuts in housing prices across the metros, government-owned construction firm National Building Construction Corporation (NBCC) has decided to offer flats at prices much below the current market prices offered by private developers. The prices are expected to be 30-50% lower than the prevailing prices offered by commercial developers.
More than 40,000 flats will be constructed by NBCC in the national capital region in the next three years. While 50% of the flats will be reserved for government employees, the other half will be available for the general public.
”We will be building 40,000 flats over the next three years in the NCR itself. Due to the phenomenal response attracted by our pilot project in Gurgaon, we have decided to scale up our operations in the metros. We had only 800 flats for sale and received more than 20, 000 applications,” said NBCC CMD Arup Roy Chowdhury.
These 800 flats, priced at Rs 1,978 per sq ft in Gurgaon, cost around Rs 30 lakh each. With these flats hitting the markets, prices in the real estate sector are expected to fall further.
NBCC is also trying to bring clarity into the way in which super built-up area is calculated. “There is a lot of ambiguity regarding the way in which different developers calculate the super built-up area. This creates difficulties for home buyers. We will set a precedent here and will bring in transparency,” said Mr Roy.
Super built-up area refers to the entire carpet area along with the thickness of the external walls of the apartment or a commercial unit along with the balconies and other common areas like corridors, staircase, lift room, motor room, security room, meeting hall, gymnasium and an area reserved for indoor games.
“There is still room for correction in real estate prices and even after selling the flats at a discount to the prevailing market prices, we will be posting healthy profits. Our flats will offer all the amenities that the commercial developers are offering at the discounted price,” said Mr Roy.
The Economic Times, May 28, 2009, Page 7
GOVT-OWNED DEVELOPER TO OFFER 30-50% CHEAPER FLATS
Anto Antony NEW DELHI
IN A move that could trigger deep cuts in housing prices across the metros, government-owned construction firm National Building Construction Corporation (NBCC) has decided to offer flats at prices much below the current market prices offered by private developers. The prices are expected to be 30-50% lower than the prevailing prices offered by commercial developers.
More than 40,000 flats will be constructed by NBCC in the national capital region in the next three years. While 50% of the flats will be reserved for government employees, the other half will be available for the general public.
”We will be building 40,000 flats over the next three years in the NCR itself. Due to the phenomenal response attracted by our pilot project in Gurgaon, we have decided to scale up our operations in the metros. We had only 800 flats for sale and received more than 20, 000 applications,” said NBCC CMD Arup Roy Chowdhury.
These 800 flats, priced at Rs 1,978 per sq ft in Gurgaon, cost around Rs 30 lakh each. With these flats hitting the markets, prices in the real estate sector are expected to fall further.
NBCC is also trying to bring clarity into the way in which super built-up area is calculated. “There is a lot of ambiguity regarding the way in which different developers calculate the super built-up area. This creates difficulties for home buyers. We will set a precedent here and will bring in transparency,” said Mr Roy.
Super built-up area refers to the entire carpet area along with the thickness of the external walls of the apartment or a commercial unit along with the balconies and other common areas like corridors, staircase, lift room, motor room, security room, meeting hall, gymnasium and an area reserved for indoor games.
“There is still room for correction in real estate prices and even after selling the flats at a discount to the prevailing market prices, we will be posting healthy profits. Our flats will offer all the amenities that the commercial developers are offering at the discounted price,” said Mr Roy.
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