Af­ford­able Hous­ing Projects not af­ford­able.

Accommodation Times - - .. Edtorial.. -

In the name of Af­ford­able Hous­ing, projects have in­creased the rates as good as Kan­di­vali and Bori­vali. The pre­vail­ing rates in Kan­di­vali for flat in 10 year old build­ing ranges be­tween 9500/- to 12500/- and for new projects it ranges be­tween Rs.12500 to 13500/- per sq.ft. su­per built up ba­sis.

A one bed­room kitchen flat in Vi­rar or at Bad­la­pur, Kot­shet Thane or Dom­bivali is built on car­pet area of 350 to 450 sq.ft. and cost­ing Rs. 22 Lakh to Rs.46 Lakh. Which means the rate comes to al­most Rs.13000/- per sq.ft.

A Bad­la­pur, Vi­rar or Thane flat is sell­ing for a rate of Malad or Bori­vali? How can it be called af­ford­able or hous­ing for eco­nom­i­cal weaker sec­tion? Af­ford­able houses comes with a rider that you can­not sell it in the open mar­ket and ev­ery sale must in­clude Builder's Trans­fer fees. Hence in­vestors, who were look­ing for a quick buck in Real Es­tate have stuck. If Malad prelaunch can of­fer for Rs.9500/- per sq.ft. a flat at far flung sub­urbs should cost Rs.5000 to 6000 per sq.ft. A flat of 500 sq.ft. should nit cost more than Rs.20 Lakh where the taxation on town­ships also re­laxed.

The recurring cost of these so called af­ford­able flats comes to Rs.3 to 4 per month per sq.ft. which do not in­clude lo­cal property tax and NA tax. Which comes to al­most Rs.2000 to 4000/ - per month. A same property tax and main­te­nance cost which Kan­di­vali and Bori­vali is pay­ing.

Com­mon ameni­ties like swim­ming pool, Gym, Gar­dens and Club house adds to the recurring cost of flats. An af­ford­able house can af­ford a Swim­ming pool or Air-con­di­tion­ing of flats 24 hours? or can a mem­ber­ship bill of club house main­te­nance in a year not adding to the bur­den of up keep­ing af­ford­able hous­ing?

De­vel­op­ment charges, ser­vice tax, VAT, and other in­ci­den­tal charges like so­ci­ety for­ma­tion, power ca­ble and sewage etc are been charged ad­di­tion­ally over and above the mar­gins, which makes af­ford­able house a dream house.

Who is pur­chas­ing? In­vestors for sure. Al­most all work­ing cou­ple in Mum­bai owns a in­vest­ment house or NA plot in and around Mum­bai. Some of them are lucky enough to get ride of their in­vest­ment in time and many are fac­ing acute short­age of funds to com­plete the trans­ac­tion.

Some of the big name who had launched a mas­sive town­ship at Boisar for Rs.1400/- per sq ft in 2008 is still sell­ing for Rs.1500/- but no tak­ers. The town­ship is now look­ing a ghost town in the night where not a sin­gle light in any of af­ford­able hous­ing flat is on be­cause most of the units are been pur­chased by in­vestors. Nei­ther it was for pop­u­la­tion of Boisar not for Mum­bai.

Sim­larly in Delhi, Amrapali, Greater Noida, Suhana, Ex­press­way and Kosi projects were ad­ver­tised as af­ford­able hous­ing. Even small and sin­gle bro­ker sold 1400 to 1500 flats within two years ie. 2011-13. for Rs.3000/- to Rs.4000/- per sq. ft. but un­for­tu­nately the rates are still strug­gling to be marginalised and huge stock is mount­ing be­cause of un­af­ford­able price of these af­ford­able hous­ing schemes.

In Ahmed­abad, Adani, Go­drej, Sports City, Ganesh Hous­ing and many other projects were launched for Rs.2400 to 2900/- per sq.ft. With huge in­fra­struc­ture de­vel­op­ment cost on sin­gle units, the recurring cost would be higher than the pre­mium hous­ing in the city like Set­tle light area, Badakdev, Jodh­pur, and oth­ers. Bopal, Sanand and some part of CG High­way were look­ing at af­ford­able hous­ing but since last six years nei­ther of the area have given any in­crea­ment not have shown any sign of re­cov­ery be­cuase the sale price was not ac­cord­ing to af­ford­able hous­ing but pre­mium hous­ing. Now when all the mar­gins for ap­pre­ci­a­tion con­sumed in very first year , how can one ex­pect to have in­cre­ment? In some of the pre­mium lo­cal­ity of Ahmed­abad the rates are rang­ing be­tween Rs.3000 to Rs.6000 per sq.ft. The same is with new up­com­ing af­ford­able hous­ing seg­ment can be seen. Hence there is no budget sale.

In Pune, Un­dri is cost­ing Rs.5000/- to Rs.7000/- per sq.ft. where the main city still of­fer­ing best deals for Rs.4500/- per sq.ft. Sin­hgad, NIBM and south of Pune sell­ing af­ford­able hous­ing with lower ameni­ties for a pre­mium as high as Aundh, Hin­je­w­adi, and Vi­man Na­gar. Chakan and Tale­gaon are al­most 20 kms from Pune are ask­ing for Rs.5000/- per sq.ft. which much above the aver­age pre­mium seg­ment price within the city. To read full ar­ti­cle

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