National Buildings Corp plans to enter affordable housing market

National Buildings Corp plans to enter affordable housing market
The Financial Express, July 9, 2009, Page 3

Praveen Kumar Singh, New Delhi

Joining the band of private realtors like Unitech, Parsvnath and Tata Housing Development Company, public sector firm National Buildings Construction Corporation (NBCC) has planned to build ‘affordable’ houses. The company has carried out initial surveys among the employees of PSUs and government offices to ascertain the demand for the houses that will be constructed in Uttar Pradesh and Gurgaon in the first phase.

“We are working on the development of upto 6,000 affordable houses in Uttar Pradesh and Gurgaon. These flats may be sold in the price bracket of Rs 6 lakh to Rs 45 lakh. We have received demand for 20,000 flats in the surveys conducted for the two projects. After the two projects, we are going to develop such flats in other parts of the country as well,” NBCC chairman and managing director Arup Roy Choudhury told FE.

In Uttar Pradesh, the company will build 1,500-2,000 apartments with two and three bedrooms at Loni Road. It will also construct about 4,000 flats with two, three and four bedrooms at an undecided location in Gurgaon. “In UP, we are starting at the price range of Rs 6-7 lakh to Rs 9-10 lakh. The higher-end flat will be sold at Rs 12-15 lakh. In Gurgaon, we will sell the flats between Rs 25 and Rs 45 lakh,” Choudhury said, adding that the company will open the UP project for booking within 2-3 months.

Initially, the company is targeting the employees of PSUs and government offices. “The company will launch a scheme for the general public after the demand from the government and PSU employees is met,” the NBCC chief said.

In the last few months, various private sector developers including Parsvnath, Unitech and Tata Housing Development Company (THDC) have announced low-cost housing projects. While THDC is developing houses in Mumbai in the price bracket of Rs 3.9 lakh and Rs 6.7 lakh, Unitech wants to sell 15,000 affordable houses this financial year out of 20,000 it will build at the investment of Rs 1,700 crore in the country. Parsvnath Developers has also launched such a project in Lucknow.

Commenting on the projects announced by his competitors, Choudhury said, “Today, you have to create lifestyle at minimum cost to the buyers. What do 250 sq ft mean to build a flat? Do you want to shift a person from a bamboo hut to the one built of concrete? The minimum size should be above 400-500 sq ft If we get land at around Rs 200 a sq ft, we would be able to sell such flats at Rs 6-7 lakh.”