After testing the project viability of affordable homes in the range of Rs 10-30 lakh in Noida last month, Unitech — the second-largest developer of the country — will line up over 4.5 million sq ft (MSF) of residential space on the eve of Independence Day in the same category.
Unitech will invest nearly Rs 600 crore in developing these projects and has formed a subsidiary under the brand name, Uni Homes, for the same. It is set to launch nearly 5,000 affordable homes in seven cities — Noida, Greater Noida, Chennai, Kolkata, Bhopal, Mohali and Rewari. In the mid-income housing segment (Rs 20-40 lakh), Unitech has already booked over 6,000 homes since April.
In the past few months, almost every developer has started launching homes in the affordable housing segment. However, Unitech has been more aggressive in this segment and has also surpassed its peer, DLF, which has launched only one major housing project in Delhi, in the mid-income housing segment.
“Our strategy is to beat all our competitors in the affordable housing segment and we are right on track,” a company official said.
Unitech has a target of launching 20 MSF of residential space under Uni Homes, while the company will launch nearly 30 MSF of residential space during the current financial year.
Unitech, which had a portfolio of only luxury homes till last year, decided to change its portfolio completely as the company’s debt reached an unprecedented level of over Rs 10,000 crore in December 2008 due to a drastic fall in sale of luxury homes. The company successfully raised $900 million through qualified institutional investors in the first quarter of FY10 after the management convinced investors of the company’s future profitability due to the change in portfolio.
After the QIPs (qualified institutional placements), the company has brought down its debt to less then Rs 7,000 crore.