This refers to ‘Real castles from this poet’ (July 21). Hats off to Jerry Rao on his nano-initiative. Unlike the top real estate tycoons who thought India consisted only of rich people, he has realised the real money lies at the bottom of the pyramid. He has got the pricing model quite correct — if the EMI on any project is a lot higher than the rent paid by the buyer on his present accommodation, there will never be enough buyers for it. Rao has identified a ceiling of 15 per cent for this.
For Rao to deliver on his dream project, however, will require very tight planning and execution. Even a small delay in construction or any approvals will change the financials of the project. Also, for a project like this to work, a lot more land has to be made available by the government at reasonable prices. Rao’s other condition, that the apartment complexes be near the place of work is a lot more difficult to fulfil. So far, one of the ways to get reasonably-priced housing was to move to the suburbs — which is why a metro rail, like the one from Delhi extending to Noida and Gurgaon, is so critical. It would be interesting to see how Rao is able to deliver on the twin promises of low price and proximity to the workplace.
Sanjeev Gupta, New Delhi
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