Wave Infratech, the realty arm of Ponty Chadha’s Wave Group, will invest Rs 500 crore (Rs 5 billion) to set up its first affordable housing venture in the Delhi national capital region area, which will offer homes in a price range of Rs 14-18 lakh (Rs 1.4-1.8 million).
The construction for the project, ‘Dream Homes’, will start this month at the company’s integrated township - Wave City in Ghaziabad, Uttar Pradesh - and will be completed in three-four years, R K Panpalia, managing director, Wave Group, told Business Standard. In the first phase, the company will set up 1,500 flats in this segment.
With the recent Budget announcements, the sales in the affordable segment are expected to increase, he said. In the Budget, the limit for deduction of home interest was increased to Rs 250,000 from Rs 150,000 for the first time home buyers for a loan amount of up to Rs 25 lakh (Rs 2.5 million).
Wave City, which is spread over 4,500 acres, will have hospitals, schools and other commercial set-up, including hotels in the second phase of the project, besides villas, independent floors and plots. The company will offer 1BHK and 2BHK homes with an area of 575-800 square feet. In total, it will provide 3,500 flats - 800 (1BHK) and 2,700 (2BHK) homes.
The investment will be done through internal accruals and debt and the company has no plans to raise money through private equity or go in for an initial public offerring at the moment, Panpalia added.