Niranjan Hiranandani, managing director of Hiranandani Constructions, told FE, We feel at least 5,000 rental apartments will be sold in metros in the next three months. Millions of rented properties will come up by the end of this fiscal in metros at a price starting from Rs 100 to 150 per sq ft. In the first two quarters of 2009-10, 8,000 apartments were sold in Mumbai. Among the residential properties sold in Mumbai, 80% are affordable homes and 20% premium properties."
There are three to four nationalised and private banks keen on lending funds to builders and the consumers at a lower rate of interest for affordable home projects, said Hiranandani. We are currently talking to various banks and they have shown interest in lending for affordable homes projects. Till then, one of the biggest challenges for builders will be to manage the pricing strategies in terms of expanding the land bank for affordable properties, he added.
Marathon Group, on the other hand, has so far sold 400 affordable properties in the suburbs and hopes to sell 7,000 at Badlapur, which falls on the extended suburbs belt, said Chetan Shah, director of the group. He added, We will not be able to offer affordable residential properties between suburban Borivali to Nariman Point as land prices are too high.
Samira Habitat is planning to develop affordable two and three BHK condominiums in Alibaug which will be priced from Rs 25 lakh onwards. Such properties will be sold for crores in proper Mumbai, said Sameer Nerurkar, managing director, Samira Habitat.
In this tough real estate scenario, at least 15 companies are expected to come up with IPOs within a couple of years and raise $6 billion. According to Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM), During the period, it is not only that rented residential properties may get a boost, but we feel demand for commercial properties on lease will take off at a much faster pace."
Post the slowdown in economy, the land-bank market in Indian real estate sector has not grown since the past two quarters, according to Anupam Goenka, vice president, Deutsche Bank AG. But, recently we have started talking to many builders who want to increase their land bank, he said.
Sachin Sandhir, managing director and country head, The Royal Institution of Chartered Surveyors (RICS), told FE, There is a need for implementation of uniform valuation practices, quantity serving, facilities management, sustainability in green building, project management in the Indian real estate sector so as to ensure the sector can satisfy the delivery expectations and the housing requirement is taken care of.