In the wake of interest rates coming down, realty companies seem to be banking on low cost affordable housing projects.
The Godrej [Get Quote] Group, too, has decided to concentrate on affordable housing segment. This is evident from the fact that Godrej Properties, a realty arm of Godrej Group, has planned Rs 5,000 crore (Rs 50 billion) township project, which will offer homes below Rs 20 lakh.
"With the interest rates for home loans coming down, the availability of finance for housing has eased. Godrej Group will focus on development of low cost housing projects across the country as there is a good demand for affordable homes", said Godrej Group chairman, Adi Godrej, who was invited as the chief guest of 7th convocation of Nirma University in the city.
Godrej Properties is investing several crores of rupees to develop various real estate projects in Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, West Bengal and Delhi. "We are investing $1 billion for a realty project in Ahmedabad. The housing project will be spread across 30 million square feet of area and it will house residential as well as commercial properties", he informed.
"The residential properties in the proposed township will be priced below Rs 20 lakh", Godrej said. This project will be developed in collaboration with local realty developers and the company hopes to start the work soon.
It may be mentioned here that apart from Godrej Properties, Homex Group, Arvind Ltd and Popular Estate Management ltd are also planning affordable housing schemes in Ahmedabad. Homex is pumping in Rs 10,000 crore (Rs 100 billion) affordable homes and township project in the city.