Lending able support to Affordable Housing What are your views on affordable housing viz a viz its importance in India and for budget home- buyers? Affordable Housing has gradually acquired the necessary respect in the sector and owing to the required sops levied the developers who earlier shied away from investing in the sector are more open.
Affordable housing has been given the much- desired infrastructure status and the very classification of affordable housing has been tweaked to have room for more inventories under affordable category.
There is ample of opportunities for affordable housing sector in the current scenario since Maharashtra has achieved 11.4% of its target since the launch of its affordable housing scheme under the Pradhan Mantri Awas Yojana ( Urban) in 2015. This means more than 88% of the target is yet to be achieved.
As a builder, do you feel that the demand for affordable housing will grow in the coming days? What do you think are the reasons for it? Mumbai region owing to rapid commercialization has become home to the job seekers coming from tier- 2 and tier- 3 cities of India. Mumbai has seen immense rise in the population over the last five years. This additional rise in population has further fuelled the demand for affordable houses that forced developers to supply more such houses.
Furthermore, the demand for any real estate project depends upon the accessibility of the infrastructural facilities. Good infrastructure augments the growth of real estate.
With both Mumbai Trans- Harbour Link ( MTHL) and Navi Mumbai International Airport coming up, the residential demand is expected to go upswing especially in Panvel, Nerul, and Vashi amongst other districts in Navi Mumbai. The working population will be more open towards moving in Navi Mumbai because of improved connectivity and better transportation solutions. Another district which is expected to witness high residential demand is Chembur because of its centralized location from both Mumbai and Navi Mumbai.
Additionally, the coastal road connecting Nariman Point to Kandivali would boost the connectivity in Mumbai to a great extent. This infra development will ease traffic, especially on the Western Express Highway. As the stretch would be connecting Nariman Point to Kandivali, residential and commercial development in Kandivali is likely to see an upward trend.
Do rising rates impact the demand trend, even when it comes to affordable housing? In a recently concluded study by global property consultancy Knight Frank India, Mumbai showed maximum progress in affordability since 2010. The establishment of RERA has further put emphasis on their need to stick to construction timelines and has further compelled developers to reduce prices to push sales. Affordable housing segment has been actively backed up by various housing schemes by the public sector and now with the introduction of Mumbai Development Plan ( MDP) 2034, there is long- due boost given to the private and corporate sector. We at Ruparel Realty have always believed in giving the best product at the right price. Our projects in affordable housing segment have been receiving good turnaround.
As a developer, do you feel there is enough support given by the Government for affordable housing? The government by enhancing the exemption limit for the general category of individual taxpayers has subsequently increased the buying capacity of the homebuyers thereby providing a boost to achieve ‘ Housing for All.’ The Section 24 has benefitted the sector by relieving second occupied houses from tax on notional income and the benefits of rollover of capital gains in two residential houses would help in reviving the real estate market.
Additional tax sops such as raising the TDS threshold on rental income to Rs. 2.4 lakhs and bank deposits to Rs. 40,000 has been a huge relief to the taxpayers.
From developer’s point of view, since they do not have to pay notional rent on unsold flats for two years after the year in which the construction is finished, is a considerable step, given the current scenario. The government has also extended the benefits under Sec 80( i) BA for one more year for all affordable housing projects approved till the end of 2019- 2020 which will further boost the demand in real estate industry.
With focus on affordable market, do you feel the luxury market will suffer a setback? Affordable housing essentially was the flavour of the year for real estate and will continue to be in the coming year. Growing Infrastructure along with government’s push for favourable policies are going to be crucial reasons for giving Affordable Housing a boost. We look forward for continuous support from the government towards the sector in 2019.
Has the rise in GST hampered the buyers market as far as affordable housing is concerned according to you? GST rate cut has not hampered the buyer’s market in any way. In fact it has led to increase in demand for under construction projects. It will be an ideal situation if the GST is revised for construction material such as cement to make it more attractive and affordable.
What are the areas you consider that can be utilized for affordable housing? There is a lot of scope to construct affordable housing segment projects in Mumbai. Young office goers with nuclear families, wish to stay closer to office to avoid long daily commute and also live urban lifestyle.
Hence areas near commercial hubs where 1 BHK is not available like BKC, Chembur, Parel, Kandivli can be utilized for affordable housing.
Please elaborate on your project and how it fulfills the criterion set by affordable housing? We recently launched our affordable housing project in Kurla – Ruparel Pride under our new category Ruparel True Value Homes. With this project we aim at providing homes that are affordable, that comes under Pradhan Mantri Awas Yojna ( PMAY) and yet offer maximum floor space at minimum cost.
We launched another affordable housing project in Parel – Ruparel Nova. The idea behind launching this project was to offer a 1BHK apartment in South Mumbai which was earlier a task for homebuyers. Such projects are either too far from the main city or out of budget in 1BHK range. We have also launched Ruparel Optima in Kandivali and Ruparel Primero in Tilak Nagar owing to the rising demand for housing in these localities.
What was the reason behind starting an affordable project? With government announcing several initiatives to give impetus to the affordable housing segment, we certainly feel that there is an increasing demand emanating from this sector. Usually, affordable homes do not offer many amenities and are located in the far off suburbs, we are bringing value add by providing homes in the city centre with the best in class amenities so that the homebuyers can experience better lifestyle. Also our focus has also been in choosing the right location to start our projects. Factors such as connectivity, proximity to infra developments and social infrastructure are what we consider of prime importance for our projects.
What are the special features/ amenities/ payment modes that home- buyers can look forward to in your project? Ruparel Pride comprises of 1 tower, providing world- class amenities at the roof- top such as Home Automation in every apartment, Modern Gymnasium, Senior Citizen Lounge, Yoga and Meditation Pods and refreshing kids swimming pool and many more. Our project Ruparel Nova also comprises of 1 tower, providing amenities such as Refreshing Sky Pool with Poolside Deck, Sky Deck Cafe with Luxury Lounges, Magnificent Sky Deck with Observatory, Senior Citizen Lounge, and Fitness Centre with Cardio Studio, Well-appointed Fruit Juice & Salad Bar, WiFi Gaming Zone with Virtual Simulation Games, Multilevel Vehicle Parking Spaces with Acupressure Path and many more. The project has been conceptualized as a lifestyle residence where all the amenities have been thoughtfully integrated with the design of the home. Our project Ruparel Optima is within close proximity to several lifestyle amenities including malls, hotels, schools and the railway station.
The upcoming Kandivali metro and costal road, are also within a 15 min radius. Further, these Vaastu compliant homes are provided with amenities like a gym, multipurpose hall and swimming pool. Our project Ruparel Primero located in Tilak Nagar has amenities such as Sky pool with wooden deck, Sky fitness centre, Gazebos, Yoda and Meditation Pavilions.
We are giving fully furnished apartments along with flexi payment plans like 2: 98 schemes for Ruparel Optima, Ruparel Pride, Ruparel Nova and Ruparel Primero.
With Indian realty focusing on Affordable Housing, we speak to Amit Ruparel, Managing Director of Ruparel Realty to express his valuable views on the topic RupaRel Realty Ruparel Nova Elevation ( Artist Impression) Mr. Amit Ruparel Managing Director Ruparel Optima show flat Living Room ( Actual Image)
Source : Mid-Day