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Utility Homes Keep Builders on their Toes
With a giant business group re-writing the price definition in field of utility homes by offering homes at a price of Rs 4 lakh, a cat has been set among pigeons in the builders’ lobby here. From the stable of group’s real estate arm, an offer of 283 square feet one-room and one kitchen at Rs 3.9 lakh and Rs 6.7 lakh for a 465 sq feet flat attached with a hall is being made to customers. This has put the city real estate developers at crossroads whether to announce similar projects or not in the city. For few builders the land cost and poor infrastructure come as big deterrents in going for such ambitious plans.
Anand Gupta, a prominent developer said, “While developing a house, a builder has two major costs — price of land and construction costs. Construction costs will not vary much whether you build a house in Mumbai or Kanpur but land cost will definitely differ.” Gupta added, “The offer works out to be between Rs 1,378 per sq ft to Rs 1,440 per sq ft. They could break floor price as they were able to get land in outskirts areas of cities like Mumbai, Delhi and Kolkata at throwaway prices. Apart from that, a well-developed infrastructure, road network, electricity and water is also available in these areas, which will bring customers to them.”
“Our problem is that customers here prefer homes in central part of the city where land is expensive. We can do the same in Bithoor area, or at Kanpur-Lucknow Road if we have an infrastructure to back-up our plans. But even then customers will not prefer such distant locations in a small city like Kanpur,” Gupta added. However, as per reports, registrations have already started for the homes being offered by a well-established real estate developer in the price range of Rs 4 lakh to Rs 15 lakh. Kanpur Development Authority is also ready with 1,000 plots or small colonies in the city and aim to hand them over within two months. Kamal Chandak, in realty business said, “Such projects are definitely in our scheme of things as well. But, as of now we are waiting to see the success score-card of the venture.”
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