Haryana changes building norms to make room for cheaper homes

Haryana changes building norms to make room for cheaper homes
The Economic Times, August 25, 2009, Page 6

ET Bureau, NEW DELHI

Homebuyers can now look forward to buying homes for as low as Rs 4 lakh to Rs 16 lakh in Gurgaon, thanks to a recent policy initiative by the Haryana government. The state government’s new scheme caps the price of the homes built by developers in return for permission to builders to make more housing units of smaller sizes in the same area.

Developers say the scheme will help launch new projects and increase cashflow . Projects under the scheme would give minimal margin. Nevertheless , developers would be encouraged to launch homes under the scheme, as there is a great demand for low-cost homes,” says Navin Raheja, chairman of Delhi-based Raheja Developers that plans to shortly launch some projects in Gurgaon under the scheme.

The incentives for developers include a relaxed density norm (from current 250 people per acre in Gurgaon to 600 people per acre) and higher ground coverage area from 35% to 50%. “The move to relax density norms will help us build smaller homes and thus make them more affordable ,” Unitech head of corporate planning R Nagraju said, adding that it was impossible to build homes of less than 1,500 sq ft on average under present density norms. Under the new scheme, a 10-acre plot will be able to house over 1,200 dwelling units as against 450 units at present, Mr Raheja estimates. A larger ground coverage means concrete structure could occupy larger area on the ground thus lowering project costs. Construction cost is usually lower in low-rise buildings.

Under the scheme, which will be open for developers until November 20, the low-cost homes with a minimum carpet area of 25 sq mt (approx 350 sq ft) will have a maximum price tag of Rs 4 lakh all over the state. Dwelling units with a minimum 48 sq mt (approx 700 sq ft) carpet area, defined as affordable category by the government, will be sold for Rs 16 lakh in Gurgaon-Manesar urban complex, Rs 14 Lakh in Faridabad, Panchkula and Ballabhgarh complex and Rs 12.50 lakh for rest of the state.

Below poverty line (BPL) families as well as the class IV staff of the state government will be eligible for the Rs 4-lakh homes, which will be at least 15% of the total dwelling units built in a project. The allotment will be made through a draw of lots and allottees can’t sell their property before five years of possession.

DREAM PROJECT

Haryana government’s new scheme caps the price of the homes built by developers in return for permission to builders to make more housing units of smaller sizes in the same area

Incentives for developers include a relaxed density norm (from current 250 people per acre in Gurgaon to 600 people per acre) and higher ground coverage area from 35% to 50%

Under the new scheme, a 10-acre plot will be able to house over 1,200 dwelling units as against 450 units at present