Developers deny any impact of government housing schemes on realty market.
Government agencies have swung into action to fulfill chief minister Narendra Modi’s poll promise of building 50 lakh affordable houses in the state. Hence, after Gujarat Housing Board (GHB), it was Ahmedabad Urban Development Authority’s (Auda) turn to announce the construction of 25,000 housing units in the next five years.
However, taking a step further Auda has fixed the upper limit income for Middle Income Group (MIG) at Rs7.5 lakh per annum against GHB’s decision to include people with annual income up to Rs 5 lakh in the same category.
“Around 22 per cent houses will be for the middle-income group (MIG) while 24 per cent would be for the economically weaker section (EWS). The remaining 54 per cent will be for the lower income group (LIG),” said D Thara, Auda CEO, adding that they would offer houses with a carpet area of 35 to 66 sq metre.
While Auda is planning to come up with a housing scheme for the LIG segment in range of Rs10 lakh to Rs15 lakh, houses for EWS would be made available for around Rs3 lakh keeping the government subsidy in mind. The houses for MIG group would be available for up to Rs22 lakh.
Auda has already floated tenders for setting up a housing colony near Vaishnodevi circle in Khodiyar village. The colony will have 456 two BHK units with 66 sq m carpet area — costing between Rs20 lakh and Rs22 lakh.
“With an aim to provide quality housing units for people we have set high construction standards. Our project will not be inferior in any manner compared to any private projects,” said Thara.
Government’s plan to flood the urban areas with 22 lakh houses is expected to create some pressure on private developers. The realty market may crumble by Diwali, said Dharmendra Shah, chairman of Auda.
However, the developers and consultants do not see it as a threat to their business.
“The government is focusing more on EWS and LIG categories. Some emphasis is also being given to the MIG. However, the government cannot offer what we can, so higher middle income group (HMIG) and higher income group (HIG) will come to private developers only,” said Jaxay Shah, managing director of Saavy Infrastructure.
Consultants in the city believe that private developers have a lot of scope in three and four BHK luxurious segment. “The government schemes might have an impact on small developers offering houses up to Rs20 lakh, but big developers will not be affected in any manner,” said Hitesh Shah, CEO (Residential) at Space Management Ltd.
The developers are also pinning their hopes on crowd and location conscious buyers. “The government schemes will have a mixed crowd, so people will not get the same ambiance that is provided by private developers,” said one of the leading developers in the city.
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