Escalating real estate prices have made property an unaffordable commodity. Today, the average cost of a 2BHK apartment in Chennai (or any other mega city for that matter) is Rs 60 lakh. The capital value of an apartment in Chennai's prime locality Boat Club Road is anywhere between 7,500 – 15,000 Rs/sq ft.
Many real estate developers have sensed this situation and are concentrating on mass housing. This would trigger the concept of affordable housing. As per industry forecasts, about 2 lakh residential units will be built for the middle income group in seven big cities. The cost of such units would be between Rs 25-10 lakh. Chennai too is waking up to this perception.
Many builders there are concentrating on mass-housing projects. Delhi-based DLF have just announced their project in Chennai. DLF has tied up with Merrill Lynch for a mass-housing project in Chennai.
Hyderabad-based IVR Prime has announced a mass residential project for Chennai. The developers are targeting income group between Rs 40,000 - 25,000 per month. The township, as per the developers, "would be built at affordable prices of Rs 18-20 lakh per house and will have 800 sq ft of built- up area in a 200 sq yard plot". The company has projects in Tamil Nadu's Sriperambadur and Hyderabad.
Bangalore-based DivyaSree Developers is also in the process of acquiring land to launch its mass-residential project in Chennai. The company has already created a special vertical brand that will concentrate on mass-housing only. The company claims that it would focus on the Chennai Real Estate market in 2007-2008. The project would be located along the East Coast Road, 12 km before Mahabalipuram near Chennai.
Hiranandani Constructions recently announced their mass-housing project in Chennai. The target audience for Hiranandani Upscale is 'upper-middle segment' and would be launched at 4,100 Rs/ sq ft. The real estate developers are planning to launch another mass-residential project in Chennai along with similar projects in Coimbatore and Madurai.
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