Sun­teck Realty Plans to In­vest .₹ 1k crore in Af­ford­able Hous­ing

The Economic Times - - Companies: Pursuit Of Profit - Kailash.Babar @times­

Mum­bai: Realty de­vel­oper Sun­teck Realty, known for pre­mium res­i­den­tial projects, is form­ing a new ver­ti­cal to ex­plore the op­tion of value hous­ing in the back­drop of gov­ern­ment’s re­cent thrust on af­ford­able hous­ing. The de­vel­oper is plan­ning to in­vest up to .₹ 1,000 crore over the next two years to de­velop these projects, said a top com­pany of­fi­cial.

The new ver­ti­cal will fo­cus on de­vel­op­ing projects that will qual­ify for tax ben­e­fits and other in­cen­tives of­fered un­der the Union Bud­get in lo­ca­tions in­clud­ing Thane, Kalyan and Navi Mum­bai.

“We will con­tinue to fo­cus on pre­mium hous­ing in Mum­bai. For projects un­der our new value hous­ing di­vi­sion, we will be look­ing at Tier II lo­ca­tions that are closer to Mum­bai. Given the tax in­cen­tives and other ben­e­fits of­fered by the gov­ern­ment, home buy­ers in this cat­e­gory will also get up to 10% ben­e­fit on pric­ing,” said Ka­mal Khetan, CMD, Sun­teck Realty.

Last week, fi­nance min­is­ter Arun Jait­ley, while pre­sent­ing the Bud­get, pro­posed in­fras­truc­ture sta­tus for af­ford­able homes along with sev­eral other mea­sures for the real es­tate sec­tor that will help the gov­ern­ment step up its ef­forts to pro­vide hous­ing for all by 2022.

The move is ex­pected to help de­vel­op­ers of af­ford­able hous­ing get ac­cess to in­sti­tu­tional fi­nanc­ing at lower in­ter­est rates as well as tax ex­emp­tions that will help them man­age mar­gins bet­ter. The mea­sures are aimed at en­cour­ag­ing com­pa­nies to build more af­ford­able hous­ing, thus boost­ing sup­ply and keep­ing prices in check. Also, the pro­posal to of­fer tax in­cen­tives for af­ford­able hous­ing based on car­pet area, and not built-up space, will help home buy­ers get ac­cess to bet­ter-sized homes.

For these projects to be de­vel­oped un­der the joint de­vel­op­ment agree­ments; Sun­teck Realty is al­ready in ad­vanced talks with three land own­ers and the deals are ex­pected to be con­cluded over the next two quar­ters.

“We will take an as­set­light ap­proach to­wards this and fo­cus on joint de­vel­op­ments in ad­di­tion to joint ven­tures for growth than out­right land pur­chases. We will be hir­ing a spe­cialised team for this busi­ness as this would need a dif­fer­ent skill and mind­set than our pre­mium projects,” Khetan said.

Co to form a new ver­ti­cal to de­velop these projects over next two years

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