In a bid to cater to the 24.87 million housing shortage in the country, Delhi-based realty developer Omaxe Ltd is proposing to invest a whopping Rs 80,000 crore in the next five years to build 1 million affordable housing units in the country.
The company has set up a separate subsidiary by the name of National Affordable Housing and Infrastructure Ltd to develop these affordable housing units.
The housing units will be priced between Rs 2.5 lakh and Rs 20 lakh over areas ranging from 300 to 1,200 sq ft While smaller towns and cities will be the primary target of this venture, the first project is expected to come up in Rajasthan or Uttar Pradesh by the end of this year.
"Ninety-nine per cent of the housing shortage is in the lower income group or the economically weaker sections of the society. We plan to bridge the gap by building 10 lakh units in the next five years at an investment of Rs 80,000 crore," said Rohtas Goel, Chairman and Managing Director, Omaxe Ltd.
Goel has mooted setting up of special residential corridors to solve the problem of affordable housing. "The government must identify these corridors and extend tax benefits to them on the lines of special economic zones. The developer will develop the corridor (which will include developing a transport system) and build affordable housing units by using cost-effective technologies and utilising land-sharing techniques."
The average cost of developing the units will be Rs 1,000 per sq ft on land, construction and marketing, a company executive said, adding "the project would be self-sustaining and internal accruals would take care of the land cost."
The company, which currently has a land bank of 4,000 acres, will probably also shed equity to an investor for this project.
To solve India’s housing shortage, nearly 20,000 acres need to be developed for the purpose. "If the 50 top builders in the country develop 500 acres annually and invest Rs 3,000 crore a year, the shortage of housing will be solved in 10 years," said Goel.