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Unitech to invest Rs 2,500 cr to build homes for middle class

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 10:54 PM IST

Unitech, the country's second biggest realty firm, plans to invest Rs 2,500 crore to launch 10,000 residential units in the Rs 30-50 lakh category by the next fiscal.

The company would launch affordable housing projects in Gurgaon, Noida, Greater Noida, Kolkata and Chennai, where it has land banks.

"We have land at various places. We are in a position to launch a number of projects," Unitech Chairman Ramesh Chandra told PTI.

When asked how many housing units the company plans to launch, he said: "It could go up to 10,000 units by next fiscal. It will need an investment of Rs 2,500 crore on construction. Land anyway I have it."

The housing units would be offered to customers in the range of Rs 30-50 lakh, Chandra said, adding that the company would launch the housing projects taking into account the affordability of that particular city.

Chandra noted that affordable housing is determined by two things -- market conditions and location.

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"These two things will determine how much will be luxury housing and how much will be affordable. But naturally affordable housing has a far higher percentage," he added.

Chandra pointed out that the company would not launch any luxury housing project in the near future seeing the present market condition.

"Luxury housing will continue, but that may form a much smaller percentage of the total offering. When it was more investor oriented, may be luxury housing was 30 per cent. Now, it may be 7-8 per cent," he said.

Chandra said it was possible to offer houses in the "affordable range" if developers reduce the size of the units, focus on value engineering and are prepare to work on lesser margins.

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First Published: Dec 18 2008 | 4:19 PM IST

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