Affordable Housing is the Need of the Hour- Pune Developers

April 3, 2009	(1 votes, average: 2 out of 5)  Loading ...
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In a market bedevilled by high prices and low availability of housing units, there is a need to segregate the approaches to “affordable housing” and “housing for the economically weaker sections”, the city’s leading real estate players said on Wednesday. Participating in a round table debate on the present housing scenario in Pune, hosted by the Times of India Group of publications, the developers also stressed upon the need to facilitate both horizontal and vertical growth of the city so that more housing stock can be created and prices brought under control.

Admitting that the present pricing structure of houses in Pune and surrounding areas is beyond the reach of the middle class, D S Kulkarni, the DSK Developers Limited’s chairman and managing director, said it is a misnomer that the demand for one bedroom homes is on the rise. “Aspirations and needs of the middles class have changed drastically and people try to stretch their budgets to buy at least a two bedroom apartment so that they can pursue a certain lifestyle,” he said. If the government follows a practical approach towards houses for economically weaker class, it will have to offer liberal tax relief to bring down the input cost of such housing, he suggested. If city can be expanded upto 80 to 100 km on all sides and the government provides basic infrastructure such as roads, efficient public transport, water and electricity, it is possible to offer houses at the rate of Rs 1100 per sq ft, Kulkarni said.

Agreeing with Kulkarni, Anand Jog, director, Darode Jog Properties, said approaches such as limited height buildings, quick possession and appropriate unit sizes will bring the total ownership cost of homes within the reach of everyone. He also pointed out that those who are aspiring to buy homes in the Rs 10-15 lakh bracket are finding it difficult to get loans from banks and financial institutions as these institutions are following the approach of processing cost per loan. “They prefer to give one loan of Rs 30 lakh instead of giving three loans of Rs 10 lakh each,” he noted.

According to Satish Magar, managing director, Magarpatta City Development Corporation, a number of input cost such as development charges and premiums recovered by the municipal authorities are beyond the control of the developers. The extent of such costs in the total cost of houses is very high, he said. If rules are modified to allow high density housing, the land cost will be shared over a number of units, he added. Rajesh Sankla, director of Siddhivinayak Developers, said that the land prices on the outskirts of Pune are still fairly reasonable and don’t carry the burden of high municipal taxes and charges. The difference in the local levies can be enough to create infrastructure like roads and street lighting, he observed.

A separate thought process should guide slum redevelopment or housing for economically weaker sections, the participants felt. Kulkarni said the government should build low rise houses and allot itself the transfer of development rights for such construction. The builders can purchase this TDR and replenish the government expenditure, he said. MHADA chief Ankush Kakade said his organisation is now following the concept of integrated housing and offer the residents a complete planned residence. These colonies will be self sufficient in many respects and offer homes of varied sizes according to needs of the buyers. All the participants, however, concurred that the city lacks efficient mobility options which has led to reluctance on part of buyers to consider projects away from the city.

News Published Under:   Pune |

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