Reasonably priced housing, the most neglected segment of the real estate sector, is now magnetizing significant investments from developers plus private equity funds.
While real estate majors like Ansals and Omaxe are planning low-budget housing projects in smaller towns and cities across the country, private equity players are firming up huge investments for this sector.
Recognizing the potential growth in reasonably priced housing segment, Delhi-based Omaxe Ltd has formed a company, National Affordable Housing Infrastructure Ltd, which will invest eighty thousand crore rupees to develop One lakh reasonably priced homes across the country.
R. Goel, chairman and managing director, Omaxe Ltd. told that “Smaller towns and cities will be the target of this venture. The initial project is predicted to come up in Rajasthan or Uttar Pradesh by the end of this year,”.
Omaxe is planning to offer these houses, to be developed in the next five years, for Rs 2.5-20 lakh per flat, Goel says.
Ansal API President (Marketing) K. Banerji said, “The market for luxury homes is limited while there is a big market for low- and mid-segment houses.” Keeping the mammoth growth potential in this sector, Ansal API is building affordable houses in Agra, Ajmer, Meerut, Panipat, Sonepat and Kurukshetra, Banerji added.
Private equity firm Red Fort Capital plans to invest four hundred thirty crore rupees over the next two years in affordable housing on the outskirts of Bangalore and Hyderabad.
Global private equity fund Warburg Pincus recently pronounced an investment of three hundred crore rupees in Jaipur-based Mannat Group company, Unique reasonably priced Homes, for projects in North and West India.
Fire Capital Fund is investing over six hundred crore rupees in seven of its reasonably priced housing projects in Indore, Bangalore, Chennai, Nagpur, Dehradun, Ahmedabad and Jaipur.
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