Signature Global launched first affordable housing project in Gurugram

Signature Global firm launched its first affordable housing project in Gurugram, Haryana.

Facts :

• Realty firm Signature Global delivered its first affordable housing project in Gurugram and said it plans to launch six projects in 2018-19 with an investment of Rs 1,000 core.
• Signature Global has launched 9 projects in Gurugram comprising 9,400 flats under Haryana government's affordable housing policy.
• The company delivered its first housing project 'Solera' comprising 1,000 units. This project was launched in 2015.
• Company's chairman Pradeep Aggarwal said, we have delivered our first affordable housing project and will hand over two more projects this fiscal comprising 1,800 units.
• The company is planning to launch five housing projects in Gurugram and one in Ghaziabad comprising 7,000 units.
• The total construction cost is estimated at around Rs 1,000 core.
• Signature Global, which is into affordable housing, recently announced plans to invest Rs 100 crore to develop its first shopping mall at Ghaziabad in Uttar Pradesh.
• In this mall, the Delhi-based company is also developing 80-rooms serviced apartments/suites to be managed by hospitality firm Clarks Premier.
• The total saleable area is 1 lakh sq ft in this shopping mall, which is expected to be operational by the end of the next year.
• The company last year raised Rs 200 crore fund from private equity player KKR. It had raised Rs 150 crore from ICICI Prudential in 2016.
• The 9 housing projects launched in Gurugram are in Rs 15-25 lakh price range.
• It has also started one housing project at Karnal in Haryana comprising 350 units. In these 10 projects, the company is constructing 2.5 lakh sq ft of commercial area as per the rules.
• The company said it targets to build 1 lakh affordable homes in Haryana, UP, Rajasthan and Maharashtra by 2022.

Analysis :

• With affordable housing segment getting infrastructure status in the last year's Budget, real estate developers are focussing on low cost homes.
• The government is also providing an interest subsidy on loans for affordable housing, besides levying lower GST of 8 per cent.
• Government notified Affordable Housing Policy in 2013. This policy is made to encourage housing Projects where in apartments of predefined size are made available at predefined rates within a targeted time frame to deserving beneficiaries in urban housing market.
• Any project for which licence is granted under the present policy cannot be converted into a normal group housing colony under any situation and irrespective of whether or not it falls within the 20% residential sector area limit prescribed for group housing projects.
• Sale of apartments under this Project will be on Carpet Area basis. It means people have to pay for area only for which they actually use.
• As per Affordable Housing Policy, the projects would be allowed in residential zones of notified development plans of various towns and cities. The license for such housing projects would be given on a first come first serve basis.
   

By: Harman Sandhu