Photo by thinkpanama A week after the budget is announced, it has turned up to be a matter of concern for the Realty companies. Imposition of a service tax of 10% on the cost of construction hand in hand with a hike in interest rates by 0.25-0.5% the industry is looking forward to some different methods to attract the customers.
As the real estate in striving to come out of the recession scenario many realty companies are coming up with fascinating projects and plans concentrating on almost all class of people. Believing the words of Union Minister for Housing and Urban Poverty Alleviation and Tourism Kumari Selja, the industry is now looking at construction of affordable housing as the next alternative.
Some major realty companies like Life Insurance Corporation of India (LIC) would undertake realty projects, both commercial and residential, across the country. Jaipur Development Authority (JDA) has come up with a new residential scheme Swarn Vihar’ near Muhana.A prick in the real estate boom, sky high land prices and a keen need to conserve cash are forcing some real estate companies to do joint development deals with landowners rather than splurge money in buying and holding land at expensive rates.
A prolific view over the new projects launched says that the JDA runs over an area span of 52.64 hectares. This scheme is finally to be launched on Friday and the expectations are to come up with the highest reserve price demanded by the development authority. The total reserved price decided by JDA is Rs 6,200 per sq mt for the new scheme. Keeping in mind the low income group it has decided to provide a relaxation on the contrary the people with high income will not be spared with the payment of additional percentage over the reserved price. The scheme is located at an urbanized area of Mansarovar well connected to the city.
Similarly concentrating on the “affordable housing theme” the ministry is urging states and private sector to gestate models providing more affordable housing as emphasized by Selja. LIC which was at a premium income of Rs 1,76,000 crore during the current fiscal, now aims at 18 per cent to 19 per cent growth in the next fiscal. The sources say that LIC will be investing Rs 2 lakh crore in the current fiscal, with the infrastructure projects sharing 15% of it.
Apart from attracting low income holders Bangalore-based developers, such as Puravankara, Nitesh Estates, Brigade Prestige and Mumbai-based Godrej Properties are adopting the joint development route to develop properties, being aware of the immediate need to save cash in a market that is becoming increasingly tight-fisted for real estate firms.
