Omaxe takes a U-turn to affordable homes

It is a U-turn for Omaxe Ltd, the Delhi-based developer that fancied high-priced condominiums and non-resident Indians a couple of years ago, reports Gaurav Jha.

It is a U-turn for Omaxe Ltd, the Delhi-based developer that fancied high-priced condominiums and non-resident Indians a couple of years ago. Maimed by the slowdown, Omaxe is out to build 6,000 “affordable” flats across 10 cities including the Delhi region, its chairman Rohtas Goel said.

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Goel said the company would launch ten new “affordable” projects with 600 apartments each ranging between Rs 12 lakh and 25 lakh.

These projects will come up at Indore, Raipur, Sonepat, Bahadurgarh, Faridabad, Ludhiana, Noida, Greater Noida, Chandigarh and Bhiwadi.

Goel said as much as 30 per cent of unsold projects in its inventory. However, a reputed property consultant, who did not want to be identified, told Hindustan Times that leading developers including Omaxe had 40 to 50 per cent unsold projects.

Omaxe sold just 200 flats worth Rs. 100 crore in November, Goel said.

Analysts said launching new projects at a time when existing projects are not selling is a risky affair. "Most of the homebuyers are in a wait-and-watch mood,” said Sachin Sandhir, managing director of UK-based Royal Institute of Chartered Surveyors, a property consulting company.

According to the National Real Estate Development Council, the industry association, there are about 1.5 million unsold houses which were built in the hope of reaping rich benefits.