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AP Rajiv Swagruha Welcomes Distinguished Delegates to – International Conference of NHB - APUHF 30-31, JANUARY 2012 Shalini Misra, IAS Managing Director,

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Presentation on theme: "AP Rajiv Swagruha Welcomes Distinguished Delegates to – International Conference of NHB - APUHF 30-31, JANUARY 2012 Shalini Misra, IAS Managing Director,"— Presentation transcript:


2 AP Rajiv Swagruha Welcomes Distinguished Delegates to – International Conference of NHB - APUHF 30-31, JANUARY 2012 Shalini Misra, IAS Managing Director, APRSCL


4 Practitioner -APRSCL SPV under companies act for moderate income ( Rs. 2.00 – Rs. 10.00 lakhs p.a ) Four and half year old organization Demand of 1.76 lakh housing ( 70% SBR & DBR) Constructing 139.10 M Sft Spread in two and three tier towns also

5 Practitioner -APRSCL 24 townships under construction Three townships completed and inhabitedThree townships 5000 acres land bank – Rs. 6000 Crores Created Asset value Rs.4500 Crores

6 Rajiv Swagruha Unique and innovative Self financed and demand driven Non – budgeted and no subsidy No exemptions Sale cost 25% < market value Integrated gated self contained strategically located townships City specific layouts, house designs, and patterns Different sizes of houses Green building norms

7 Rajiv Swagruha Full infrastructure package like roads, water supply, underground utilities, landscaped gardens, STP, water harvesting, firefighting system etc., Lifts (passenger & cargo) - generator back up Facilities like piped gas supply, solar water heating systems, car parking (charged) Recreational & Commercial spaces, hospitals, club etc., (not charged) Construction as per NBC and BIS Premium lifestyle at affordable cost

8 Buyers Psychology Monetarily rewarding and emotionally gratifying Home where morning starts with chirping of birds Integrated township safe and secure Comforts like thematic parks, playgrounds Commercial spaces – market at door step Hospital at max distance of 1 to 2 Kms School / offices – convenient transport Recreational facilities within Other status symbols – club at arms length

9 Buyers Psychology In SFS buyer has to pay the cost in installments – synchronized to physical progress of construction Moderate income group cannot pay rents and EMI together Moratorium period of home loan is not coterminous with the construction time Buyer wants to pay when the house is ready to occupy

10 Questions in Mind What is an affordable House ? Will it be adequate and appropriate to my requirement? Where can we get a quality affordable house ? Am I eligible to apply for this ? How much will it cost ? Where will I get loan ? What will be the EMI ? What will be the maintenance cost What are the transport facilities and amenities ?

11 Affordable Housing Affordability is the ratio of cost to income Cost of living in that house (core, peripheral) Quality of life Transport & communication availability Facilities & amenities- convenience Maintenance cost for decent living

12 Rajiv Swagruha -Philosophy Affordable housing is not about box sized budget homes in far flung places where there is no connectivity to work places and little surrounding infrastructure An affordable house does not mean a substandard house or any compromise on space, quality or facilities as required by the family Affordable Housing has to cut across all income segments of the society and has to make economic sense – inclusive / complementary housing 12

13 Rajiv Swagruha -Philosophy Demand of affordable quality homes is in the price range of Rs.15 – 30 lakhs. Rajiv Swagruha range Rs.6.30 – Rs.36 lakhs Swagruha - necessity for many, opportunity for few and growth engine for Government - Inclusive growth 13

14 Is affordability and adequacy both possible Yes Rajiv Swagruha before finalizing detailed requirements, observed number of families living in different sizes of houses and flats and planned an adequate housing, followed up with no of exercises and negotiations to make it affordable with highest quality. It offers choice in location, cost, sizes and pattern as well Hassle-free life

15 An adequate affordable housing –Swagruha Income level - variety of sizes and pattern of construction Size of the household – Delinked with income level & co applicant allowed Composition of the household – joint family Profession – IT / Employees Age – senior citizen – Prashanthi enclave Aspirations – upward movement Stability- covering two & three tier cities

16 Rajiv Swagruha – How affordable High land prices – optimization of land use Cost of construction – on schedule completion Transaction cost – No cost within the township Profit margins - volumes and spread Limited competition – 25% less than the market Slow supply – demand driven and self financed Outdated technologies – fast and cost effective technologies used (Shirke & Mivan) technologies

17 Affordable Cost Range Sl.NoCategory and areaCost range in Rs. lakhs 1Exotic (1599 Sft)35.00 - 40.00 2Classic (1487 Sft)22.50 - 36.00 3Intrinsic (1150 Sft)17.40 - 25.00 4Basic (798 Sft)10.80 - 18.00 5Civic (545 Sft)6.30 - 11.35 No Hidden costs and extras

18 Buyer APRSCL Bank / FIs Tripartite win – win relation Building Trust

19 Issues Home loan under priority sector (10 areas) No sub target for housing Bridge loan under commercial Real estate 150% risk factor Absence of clarity and consensus No Indian urban planned development & vision Mind set change of policy makers Tax holiday for limited period Concentration to shift to all urban areas

20 Issues Govt initiated are tilted It gives rise to skewed unorganized urban growth and development Supply has to respond to requirement in different segments otherwise we might have surplus in some while shortage in some others A clear understanding of the nature of housing problem is an essential pre-requisite for formulating appropriate policies which have to be directed towards meeting requirements of all sections of population – inclusive complementary growth

21 Is Rajiv Swagruha CRE ? Subsidized Needy & political Poor No monetary commitment – Free Limitless Affordable ? Needy & Non political Moderate Hard earned money, deliberate saving, Home loans First House Missing - Advocacy Real estate Business & investment Rich Surplus money 2 nd House onwards Categories of Housing initiative

22 Success formula Long term loans (Home and bridge ) at concessional rate of interest Recognizing affordable self financing housing under priority sector in its totality Addressing full segment of population in an integrated manner

23 Seeing is believing … visit us THANK YOU

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