Tata Housing Development Co with long term capital investment to develop the 16,800 housing units in next ten years

IFC, which is the member of World Bank Group, has recently entered into the agreement with none other than Tata Value Homes with an aim to invest more than Rs 160 crore or $25 million or housing projects for low-income households in all over the India.

As per agreement, now onwards for affordable housing projects IFC will provide 100 per cent subsidiary to the Tata Housing Development Co with long term capital investment to develop the 16,800 housing units in next ten years, as per the statement of company in press release.

As per the statement of Vipul Prakash, who is the Director for Global Corporate Coverage at IFC, Tata Value Homes is helping the lower as well as middle income groups and young professionals too in urban as well as in semi-urban area to access the quality lifestyle and affordable housing”. The more he added that its first step towards long terms investment plan to facilitate the infrastructural development for affordable housing in India and in other emerging real estate markets too. However; the now onwards the investment for new affordable housing projects will be undertaken by the Tata Value Homes. According to the Brotin Banerjee, CEO and MD of Tata Housing, the partnership with IFC will help the country to cater the demand of affordable housing as in past few years we have delivered more than 5000 flats in the price range of Rs 500,000 to Rs 30 lacs or $ 8,000 to $ 50,000 in all over the India under different residential projects. The patnership will help the company to become the largest home provider in India in terms of value and affordable housing sector by the end of 2018 and 2019.

Whereas; in India the urbanization is increasing due to the high number of nuclear families and rising income level ad lifestyle which are responsible for high demand for housing. As per the recent survey there is need of more than 19 million housing units.

Tata Value Homes was established in 2010 with a single aim to provide best value in affordable housing segment in all over the India and to this they have two well known brands such as; New Haven for best value homes and Shubh Griha for affordable housing. Apart from them some of the other ongoing residential projects are of Tata Value Homes are Shubh Griha at Boisar near Mumbai and Ahmedabad, whereas; New Haven is under development near at Boisar, Bengaluru and Ahmedabad

Tata Housing started five affordable housing projects

Tata Housing Development Company has started its five affordable housing projects, including one in the city, as per the statement of company official. Brotin Banerjee, CEO and Managing Director of Tata Housing Development, said that we are setting up five affordable housing projects in all over the country, including Kolkata city.

For Kolkata city, Tata Housing Development has entered into a development manager model with Square Four Group with a aim to set-up a project on B T Road in the northern part of the metropolis.

As per the development manager model of Kolkata city project, Tata Value Homes, which is a 100 percent subsidiary of Tata Housing, would provide managerial and technical expertise including ground support, whereas; the investment would be by Square Four group which would be Rs 1,800 crore. According to Banerjee, Tata Housing will invest between Rs 2,500 crore to Rs 3,000 crore for building premium and affordable housing projects in the up-coming years.

Housing Mission named after Sardar Patel

The ambitious urban housing mission to ensure housing for all by 2022 will be soon launched and will be named after Sardar Patel, said Minister of Housing and Urban Poverty Alleviation M. Venkaiah Naidu. The government is taking many steps to convert the vision of housing for all by 2020 to reality and to boost the affordable housing. The government will give priority status to affordable housing. Since the vision of housing for all by 2022 is to be realized, hence the government will streamline the approval process and also reduces the total cost of ownership for the end user of affordable housing on an urgent basis.

Addressing a press conference to present the vision of the central government for the country, Minister of Housing and Urban Poverty Alleviation M. Venkaiah Naidu said, “under the Sardar Patel Urban Housing Mission, 30 million houses will be built by 2022, mostly for the economically weaker sections and low income groups, through public-private-partnership, interest subsidy and increased flow of resources to the housing sector,” Naidu said. The minister made this announcement while speaking at the ‘World Habitat Day – Voices from Slums’ programme here

Naidu said an investment of about Rs 50 lakh crore would be required over the next few years for various initiatives such as housing for all (Rs 22.50 lakh crore), urban infrastructure development (Rs 16.50 lakh crore), urban sanitation (Rs 62,000 crore), and building smart cities. “The Government is focusing on ‘in-situ’ development of slums by encouraging vertical construction,” he added. The central government will remove major bottlenecks like land acquisitions and government clearance for the real estate sector, especially affordable housing projects. The Modi government wants everyone in the country to have a roof over head and hence no efforts will be spared to realize the dream of the development of affordable housing for all countrymen, said the minister.

Ready apartments in Thane

Thane Ghodbunder Road residential area comes as welcome news for the flat buyers who feel that realty in Mumbai is overly priced.

In near future, Ghodbunder Road is going to rival Andheri, Powai and Goregaon as far as the real estate is concerned given that Wadala-Ghodbunder road metro connectivity is going to be stretched all the way.

The area is going to witness project deliveries of more than 40 per cent projects active in the area. There are 65 active projects in the locality out of which over 20 will be giving possession in the next by the end of the year. “Ready stock is pushing up the demand in Ghodbunder Road. This stock offers properties in varied budget ranges of Rs 40 lakh to Rs 1 crore,” says Anand Patil, proprietor, Oceanic Realtors.

“Availability of comparatively affordable new property options makes the locality an attractive investment hub for young buyers aged between 27-35 years,” informs Patil. Apart from this, sentiments also improved as the Wadala-Thane Metro is expected to get funding from the World Bank.

Ghodbunder Road has entered the top 10 list of the most preferred localities for purchase, as per the real estate watchers.  The area is listed on the ninth spot and shares space with some top localities of Mumbai such as Andheri East and West, Powai and Goregaon.

As per the data, a 1BHK of 500-600 sq ft is available for Rs 50 to 64 lakh while a slightly larger apartment of 800 sq ft is offered for Rs 95 lakh. GB Road also has multiple 3BHK options available in a higher price bracket of Rs 1.8 crore to Rs 2.5 crore.

Areas along the Ghodbunder road like Manpada offers a 500 sq ft 1BHK apartment at a starting price of Rs 60 lakh, while Pokhran Road offers a similar size apartment in a budget range of Rs 68-74 lakh. Similarly, Mulund East offers smaller properties at Rs 90 lakh to Rs 1.2 crore for a 700 sq ft property.

Brahmand, Kasarvadavali, Hiranandani, Vijay Nagari are popular residential colonies along the Ghodbunder road. As per the Mumbai Metropolitan Region Development Authority (MMRDA) plan, all these localities will be having a metro station in the vicinity and would have direct connectivity to South Mumbai as well as to Thane’s Teen Hath Naaka. The metro connectivity is expected to boost real estate prices further in the area.

Residential Properties in Thane

Property Price in thane

The New Chief Minister of Maharashtra

The first BJP government of Maharashtra is committed to providing roof over every head and accelerating housing industry in Maharashtra to realize the vision of housing for all by 2020, said Maharashtra CM-designate Devendra Fadnavis.

Q: What steps should government take to convert the vision of housing for all by 2020 to reality and to boost the affordable housing?

A: The government will give priority status to affordable housing. Since the vision of housing for all by 2022 is to be realized, the government will streamline the approval process and also reduces the total cost of ownership for the end user of affordable housing.

The new government will remove major bottlenecks like land acquisitions and government clearance for the real estate sector, especially affordable housing projects. Our government wants everyone in Maharashtra to have a roof over head and hence we will do everything within the legal framework to facilitate the development of affordable housing.

Q: Will you adopt BOT policy for development?

Developmental projects should be undertaken on ‘Build, Operate and Transfer’ (BOT) basis. This is one of the ways of development. But in the last few years, some contractors have gained disproportionately out of such projects. Nothing was done in the past to augment the revenue of the state. But this will not happen again. Efforts will be made to augment the revenue of the state by proper evaluation of every project and no undue favours will be granted to any contractor.

Q: What will be your order of priority as the CM?

A: Development of infrastructural facilities, improving the agricultural productivity, industrial development, law and order, standard education in schools and colleges, besides basic facilities of water, power, road, bridge, irrigation and airport.

Q: Since you hail from urban area, what is your idea of agricultural development?

A: I am the son of farmer. I know that it is essential to improve the productivity of the farmland. Unfortunately nothing has been done by the past government. A special machinery will be set in place for this purpose. There will be proper planning for ‘Bagayati and Jirayati’ forms of farming and ample water will be supplied for irrigation. Stress will be on sprinkler irrigation which will lead to the saving of water.

Q: What is your idea of industrial progress?

A: For the promotion of industry, red-tapism will have to go. Efforts will be made to remove all hurdles in the path of industrialists desiring to set up industries which take as many as two years for establishment as of now.  No delay can be tolerated in this competitive age. Technology gets obsolete in no time and hence fast clearances will be granted to industrial projects. Decision will be taken on increasing the FSI in the industrial estate. Effective implementation of Narendra Modi’s ‘Make in India’ will be done in Maharashtra and I will put great emphasis on IT development in Maharashtra.

Q: When in opposition you had flayed the government for turning Maharashtra into debt-burdened state. How will you tackle the situation?

A: Actually, I am not opposed to seeking loans. What is important is purpose for which the loan is taken for and how it is utilized, whether assets can be created out of them. When the loan is spent on unproductive things, the state enters the debt trap. Unnecessary expenditure will be lessened; quality of official cost will be examined, and newer sources of revenue generation will be created so that the state GDP also goes up.

The Reserve Bank of India (RBI) has called upon banks to bring in more financial innovation into home loan products by linking such loans to deposits. According to R Gandhi, Deputy Governor, RBI, “Savings can be induced to generate savings balance by way of monthly or periodic deposits. This will serve as a track record for future home loan products and once it reaches a certain balance, the financial institution can consider sanctioning the home loan with the balance in the account acting as collateral.”

Gandhi said the RBI will also periodically review the definition of affordable housing, taking inflation into account. Further, he mentioned the need to internalise the credit risk originating in the housing sector, particularly the low-ticket housing segment, through proper insurance schemes for banks and other institutions.

Gandhi asked various stakeholders to ensure timely completion and delivery of projects without escalating the costs. In addition, he highlighted the need to develop an elaborate system for collecting data on real estate and housing activity to facilitate informed policy decisions.

Amid demands from the real estate industry with regard to funding from banks, Gandhi also asked them to moderate their expectations as banks are ultimately the trustees of public money and it needs to be used efficiently for all sectors. On differential licensing, Gandhi said the central bank intends to issue the final guidelines during this financial year after analysing comments and suggestions invited from various stakeholders. Asked if state-owned India Post will apply for a banking licence, he said the Government has to give its approval and only then can it apply to the RBI.

National Real Estate Development Council

India will require to build at least 30000 to 35000 dwelling units daily for 8 years to meet the housing needs of the country, says the National Real Estate Development Council (NAREDCO) report.

A majority of these houses need to be in the affordable segment requiring investment of more than US$2 trillion since a fifth of urban and rural households have limited access to housing facilities.

It is estimated that in the next eight years, India needs to invest more than Rs 125 trillion (USD2 trillion) at current prices to meet its housing needs, which is over Rs 16 trillion (USD260 billion) per annum.

“Large-scale development of affordable housing projects is still a challenging proposition for many private developers,” it said. The current housing shortage in urban areas is estimated at 19 million units. Of this, about 95.6% is estimated to be from economically weaker sections (EWS) and low income group (LIG) households, who cannot afford houses costing above Rs 15 lakh.

“A major issue in the real estate sector, which has increased risk affecting the availability of liquidity is the widening of the real estate project life cycle. A project today takes anywhere between seven and eight years, of which about 20%-30% of the capital investment happens in the initial years. Liquidity from formal channels is available only for four to five years, and that too at the start of construction. Thus, the lack of long-term capital in the sector could be restricting entry of new players into the market,” Said Neeraj Bansal, KPMG India head real estate and construction.

Property prices to be stable in Mumbai

Stable price scenario can be expected for property prices in Mumbai in the foreseeable future due to the high price points. However, Bangalore, Chennai, Pune, and Kolkata may see marginal appreciation due to increased demand.

In second quarter the union government had announced friendly measures in the 2014-15 budget for real estate sector. With the general improvement in overall sentiment and optimistic announcements for real estate BSE Sensex and the realty index showed upward trends.

What is termed as a positive move, the Reserve Bank of India (RBI) allowed banks to issue long-term bonds with a minimum maturity of seven years to raise funds for lending to long term infrastructure and affordable housing projects. Home loans up to INR50 lakhs (INR5 million) for houses costing up to INR65 lakhs (INR6.5 million) located in the six metropolitan centres and INR40 lakhs (INR4 million) for houses costing INR50 lakhs (INR5 million) in other cities are eligible for home loan under this scheme.

A rise in transaction volumes was witnessed in cities such as Bangalore, Chennai and Pune and a number of projects were launched. In cities such NCR, Mumbai and Kolkata, there was an increase in enquiries for residential properties but transaction volumes remained stable and developers continued to promote their unsold stock by offering innovative payment plans. “We anticipate a stable price scenario in cities such as Mumbai and NCR due to the high price points. However, Bangalore, Chennai, Pune, and Kolkata may see marginal appreciation due to increased demand. Most of these cities may witness the launch of affordable projects in the coming quarter as a number of developers are planning to launch affordable housing projects in line with the government agenda focusing on this type of housing.