Hiranandani to construct budget flats costing Rs. 2 lakhs

By A.T. Bureau
At long last there is definite ray of home for the shelterless economically weaker section of the society. This is not a government scheme, but is a bold decision, by the leading developer Mr. Niranjan Hiranandani, M.D. Hiranandani Constructions, to construct small, compact flats of 250 sq.ft. each costing around Rs. 2 lakh.
In an exclusive interview with Accommodation Times, Mr. Hiranandani, who have developed prime real estate in Mumbai and elsewhere for high-end users, said that he is keen to construct low cost houses in bulk say 10,000-25,000 with basic amenities playground, school and good infrastructure to the complex. Such project will not have gymnasium, swimming pool, club house, thus bringing the cost of construction to around Rs. 500/- per sq.ft. He further said the final saleable price should be around Rs. 800/- per sq.ft. which includes the cost of construction plus Rs. 100/- for F.S.I., Rs.100/- for technical service including passing of plans and Rs. 100/- per sq.ft. as profit. He cleared that the profit part is kept to adjust the escalation in prices of inputs materials over the period of time.
According to Mr. Niranjan Hiranandani, the final cost of a flat of 250 sq.ft. should be around Rs. 2 lakhs. So is to make it most affordable to the lower income groups. The purchaser can avail housing for the housing unit in the mass housing project. Such project may be constructed under a new brand name or a sub-brand.
There is great scope for such budget flats. Builders can have comfortable margins in mass housing projects as they are driven by volumes. The main issue is the availability of land in and around Mumbai at Rs. 100 per sq.ft. Such projects can definitely check the spreading slums and provide decent living conditions to the residents of budget flats.