Hiranandani expands from luxury to low-cost
MUMBAI: Niranjan Hiranandani, the real estate developer well known for luxury townships like the Hiranandani Gardens in Powai, Mumbai, is expanding into affordable homes and industrial townships through an independent venture Hiranandani Communities.
Hiranandani may also look at setting up an independent not-for-profit company to build low-cost homes, the Mumbai-based developer said in an interaction with HT.
“We will look at more affordable housing. We are also looking at a company where we will do non-profit work. Low-cost housing is the objective, however, we are still working out how to do it,” said Hiranandani.
Real estate developers and consultants say there is a huge supply-demand gap for affordable housing but cost of land has to come down, for such projects to take off.
“It is no secret that India faces a huge shortfall of livable and affordable houses for a vast majority…supply-side constraints such as land availability and costs contribute toward creating a supply-demand mismatch in this category, primarily related to the affordability levels of residential projects within the main city boundaries,” says a report by CII and consultant Jones Lang LaSalle.
Hiranandani Communities, the independent company run by Niranjan Hiranandani is currently developing projects in Panvel, Alibaug and Pune (Maharashtra), Ahmedabad (Gujarat) and Chennai (Tamil Nadu).
Some of these are pure residential, while others are for mixed use developments. The company aims to launch 4-5 new projects next year.
Hiranandani Communities will also develop industrial townships. The first such township will come up in over 250 acres at Talegaon, near Pune. Hiranandani envisages that initiatives such as the Make in India programme will create demand for industrial townships that are currently restricted to state industrial development corporations.
“We are looking at about ₹200 crore investment immediately and depending on how the response is, will look at additional investments (in industrial parks),” said Hiranandani.
The Hiranandani Group has been in talks with global asset managers to sell about 5 million square feet of prime commercial real estate in Powai for about $1 billion (₹6,700 crore).
HT had reported last month that the group was likely to conclude a deal with Canada’s Brookfield Asset Management for the Powai office assets, however Hiranandani did not confirm the development.