Realty firm Ansal Properties and Infrastructure today announced investing about Rs 500 crore in the next 18 months to develop ten thousand affordable homes, which are expected to be priced between Rs 2.5 lakh to Rs 9.5 lakh.
The housing units will be developed in Uttar Pradesh and Rajasthan and will be ready for delivery in one-and-half year.
"We plan to develop and sell 10,000 affordable houses in Rajasthan and Uttar Pradesh by the end of this year," company Vice-Chairman and Managing Director Pranav Ansal told reporters here today.
Asked about the cost to develop these units, he said, "The investment will be about Rs 400-500 crore over the next 18 months, including land."
The investment would be funded through internal accruals and advance against sales, he said, adding the company already has land in possession and approvals to develop the projects.
"As the market is evolving, we felt that there is great demand of affordable housing. We are offering the residential units below Rs 10 lakh, between Rs 2.5 lakh to Rs 9.5 lakh," Ansal said, adding that banks are also offering lower interest rates for homes below Rs 20 lakh.
He said the company has sold about 2,000 such units that were launched in November last year in these two states.
Asked about the margins, he said, "Margins will be low at about 20 per cent considering the present input cost."
The affordable housing projects would come up in Lucknow, Agra and Meerut in Uttar Pradesh. In Rajasthan, low-cost homes would be developed in Jaipur, Jodhpur, Ajmer and Bhilwara. The size of the flats would vary from 200 sq ft to 850 sq ft and the construction cost would be Rs 500-550 per sq ft.
The company is talking to other states in North India for reducing the stamp duty on affordable houses so that it can launch similar projects there.
