Construction rates much higher compared to private sector.
Will the 10,000 houses that the AMC plans to construct for the economically weaker section or the lower income group be affordable to them?
It seems the rate of construction estimated by the civic body is much higher compared to the private sector.
The civic body’s estimated cost of construction for these houses is about 10% higher compared to luxury houses constructed by private builders.
The AMC plans to set up dwelling units with carpet area of 28 square metre for economically weaker segment (EWS) at an estimated cost of Rs5.50 lakh to Rs6 lakh and 45 square metre for lower income group (LIG) for Rs11.50 lakh to Rs12.50 lakh.
Going by the AMC’s estimated cost of construction for EWS segment it will be around Rs19,000 to Rs21,000 per square metre and for LIG segment Rs Rs25,000 to Rs27,000 per square metre.
The price seems to be much higher compared to the private sector or some other government organizations.
“The construction cost for affordable houses is in range of Rs16,140 to Rs17,216 per square metre carpet area and for luxurious segment it will be Rs21,520 to Rs26,900 per square metre,” said Yogesh Bhavsar, chairman and president of Gujarat Institute of Housing and Estate Developers.
It may be noted that private developers provide better amenities like swimming pool, gymnasium, library, club house, terrace garden, security solutions, Jacuzzi, better quality raw material in high end products. However, the civic body will not offer these facilities.
Sources in Gujarat Housing Board (GHB) also admitted that the civic body’s construction prices are high. “Our construction cost is around Rs18,000 per square metre which is higher by nearly 10-15% compared to private developers but this is due to higher specification for structural stability,” said a GHB official.
Asked about the higher construction rates, AMC municipal commissioner Guruprasad Mohapatra denied that the construction rates were higher. “We have invited tenders for the construction. Even the developers can apply for construction of the houses,” he said.
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