Tata Housing lauds proposal to boost affordable housing

Tata Housing lauds proposal to boost affordable housing

Tata Housing has identified the low-cost and affordable housing segment as a significant growth driver that will fuel its development and expansion plans and to address the same, it has launched a new subsidiary ‘Smart Value Homes Limited,’ which will cater exclusively to houses in the Rs 5-35 lakh range.

Smart Value has already successfully demonstrated its expertise in its projects at Boisar and Vasind near Mumbai. It further plans to expand its reach across the country and plans to invest over Rs 2,500 crore in the segment.

Brotin Banerjee, CEO & MD, Tata Housing Development Company Limited, says, “There is a shortage of 26 million dwelling units in the country and I don’t think it is possible for the Centre and State governments to invest that kind of money for this purpose. It is only the private sector or a private-public participation that will work.
“I seriously believe that the low-cost housing sector should be de-linked from real estate and be accorded infrastructure status. Loans for such projects should be made available at lower rates and also qualify for stamp duty and registration fee waiver.

“Development and approval charges should similarly be done away with or at least subsidised. Some initiatives need to be taken for promoting reputed corporates to enter this area.”

Tata Housing is currently developing about 20 projects across the country. In this fiscal, the company is targeting to sell 12,000 units in the affordable segment.

Considering the demand for affordable housing in Karnataka, The company is also in talks with Karnataka government for setting up ‘Value Homes’ on PPP mode.

One of the main issues stalling the development of low income housing is the lack of finance available to buy such homes. Tata Housing’s alliance with MHFC has successfully addressed this gap by enabling easy housing finance to the consumers in the informal sectors.

Tata Housing has signed MoUs with various state governments such as Gujarat, Assam, Himachal Pradesh to develop affordable housing and have also been invited by countries such as Srilanka, Maldives and Nepal to build integrated cities with affordable housing.

Tata Housing was recently honoured with the Realty Plus Awards, 2011 in the “Best Affordable Housing Project of the Year” for “Shubh Griha, Vasind (near Mumbai).

The award stands testimony of Tata housing’s success in providing the best in class value homes through Shubh Griha, a brand of Smart Value Homes.

Smart Value Homes, a 100% subsidiary of Tata Housing Development Company Limited was specially created to focus on the Value and Affordable Housing Segment to consumers in the price range of Rs 5 to Rs 35lakh.

Incorporated in 2010, Smart Value Homes is in various stages of construction with a presence in Pune, Talegan, Chennai and Mumbai. The company plans to invest over Rs 2500 in Value and Affordable housing projects across the Tier I and Tier II cities.

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