Mumbai: Residential property prices have fallen by at least 25per cent in certain markets, but demand lags still. There is a hope though: the government’s push for affordable housing.
The Lodha Group, a property developer in Mumbai, specialises in luxury projects and has launched a project in Thane at Rs 2,997 per square foot. The group plans to invest Rs 2,500 crore in various projects by March 2010. About 20 per cent of this amount will be spent on affordable housing.
Government encouragement for affordable housing projects will be a “big boost” for developer, says Abhishek Lodha, director of the Lodha Group. "It is a big boost for the segment. We don't know the details yet, because the banks are yet to come out with the detailed package, but the fact that loans up to Rs 25 lakh will be available at a lower interest rate, will definitely encourage developers to provide better quality housing," he says.
Other luxury property developers are also exploring the affordable housing segment. These include Marathon Realty, which plans to launch a project in Panvel soon with a price range of Rs 10 lakh to Rs 30 lakh.
The Runwal Group has launched a project in Thane with apartments priced between Rs 15 lakh to Rs 25 lakh.
Then there’s D-B Realty, which is planning a project in Kanidvali project where it offers discounts of Rs 5,500 per sq ft.
Developers now hope that with renewed thrust on affordable housing demand for property will pick up soon.