Builders are Dumping Affordable Housing Projects
GURUGRAM: City builders prefer to encourage activities on plots of land under the Centre’s Deen Dayal Awas Yojana (DDJAY) instead of building affordable homes. While both are designed to build affordable housing for people, Engineers are increasingly shifting their focus to DDJAY for many reasons, such as the lack of a cost cap.
The developers claimed affordable housing was inappropriate because the authorities had locked the price at Rs. 4,200 per square foot. With the cost of land and development materials soaring up the roof following the pandemic, overall profits have plummeted for these activities.
Another reason designers are slowly shedding affordable housing developments is that the burden of keeping pace is on the manufacturer after they’ve been sold.
In reality, there’s no cap on costs or possibility of support in projects that are DDJAY-related. These projects typically manufacture floors that can be successfully sold and aid in making money from the prior year, which the engineers have emphasized.
Based on a reasonable estimate, a 2-3BHK house in any affordable housing project can cost anywhere between 20 lakhs to Rs 28 lakh. As a result, a floor for developers under DDJAY can be purchased for around 50-70 lakhs, and smaller plots (<180 square yards) at around Rs 1 crore.
Pradeep Agarwal, Administrator at Signature Global — perhaps one of the most prominent players in the housing market — stated that affordable housing developments were well-liked, but plotted improvements were more profitable for engineers.
“According to the buyer’s view, plotted homes offer more appreciation and a larger living area, which have been popular since the pandemic. Free floors are currently experiencing increased demand as they can provide rapid and high-quality developments and are limited to four stories per plot. Certain floors also provide the same amenities as the gated society.” said the official.
Gurgaon generally has around 100 ongoing affordable housing projects; however, less than 20 percent are complete. On the other hand, Gurgaon and Faridabad have been the sites of the closing of more than 11,000 floors that are free in recent times and a half an increase from 3,000 between 2016 to 2020.
Surinder Singh, the head of the GLS Group, admitted affordability in housing is losing ground due to the rising costs. “This is despite the fact that the public authority has recently increased the price cap from 4,200 to 4,000 per sq. ft. However, it is not enough to offset the growing cost of construction,” he said, noting that even affordable projects required the development of endorsements and the ability to lean.
Mohit Mittal, the head of the ROF group, told ROF that the land costs had seen an almost 70-80% increase in the past few months. The costs of concrete, steel, and other building materials increased at times.
“In such a scenario, it is becoming increasingly difficult to carry out. The DDJAY method essentially allows the designer to evaluate the product with a high degree of certainty while keeping current with the product’s benefits and its practicality for customers,” he said.
Santhosh Kumar, Director of bad habits of the land specialists Anarock, said that one of the primary reasons for the shift in inclination was the possibility that manufacturing floors could be sold only. Many developers with land banks are now arranging to obtain a permit to construct autonomous floors, and he drew the attention of.
In addition, players with notable names such as DLF, Signature Global, Trehan, and Raheja are currently focusing on developing developer floors that local companies typically develop.
The homebuyers believe that the manufacturer floors beneath the DDJAY plot go beyond the reach of most families of the working class.
“The cost of plots that are part of the DDJAY conspiracy starts at around 70-80 lakh. If you have to build an apartment on it, the total price will be around one million. What can this program do to aid those looking for affordable homes?” asked Deepak Verma, who works for an operations company.
He also said that the public authorities should ensure that the cost of a home under the plan was not more than Rs 30 lakh.
A person in the town and national arranging office stated that affordable housing projects were directed towards ending illegal states. “Affordable projects, whether under group housing or planned improvement, have been an aid to buyers looking for budget-friendly houses,” he added.
Having gathered information on manufacturers planning to build floors on their own the authority stated, “We aren’t able to force manufacturers to agree on an exact plan. We can offer incentives such as cost-covers, unwinding EDCs, and creating more space to develop.”
Related Post –
The government may require the redevelopment of Delhi’s areas.