Sunteck Realty is ready to enter affordable housing sector after the government’s strong push on it in the recent union budget 2017. The real estate developer has planned to invest around Rs 1,000 crore over the next two years.
The premium residential projects developer created a new vertical named as affordable housing which will aim to take benefits of the centre’s recent offering of lower tax exemption and interest rate on the loan taken from any financial institutions.
Affordable housing is granted infrastructure status that is going to help many developers arrange fund from several financial institutions. The proposal of tax incentives for affordable housing is based on the carpet area not on the built-up area like before. This will encourage many property developers to focus on affordable housing sector.
The residential projects are planned to develop in Thane, Kalyan and Navi Mumbai located on the outskirts of Mumbai. Sunteck Realty wants these projects to be developed in a joint venture with three landowners. The deals will be concluded in next two quarters as the company is in the final phase of talks with them.
“We will take an asset-light approach towards this and focus on joint developments in addition to joint ventures for growth than outright land purchases. We will be hiring a specialized team for this business as this would need a different skill and mindset than our premium projects,” says Kamal Khetan, CMD, Sunteck Realty.
Source: ET Realty