AP Rajiv Swagruha
Welcomes
Distinguished Delegates to – International
Conference
of
NHB - APUHF
30-31, JANUARY 2012
Shalini Misra, IAS
Managing Director, APRSCL
PRACTITIONERS IN EMERGING AFFORDABLE
HOUSING MARKETS
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
Practitioner -APRSCL
• 24 townships under construction
• Three townships completed and inhabited
• 5000 acres land bank – Rs. 6000 Crores
• Created Asset value Rs.4500 Crores
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
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
Buyers Psychology
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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
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”
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 ?
Affordable Housing
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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
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
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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
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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
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
Rajiv Swagruha – How
affordable
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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)
Affordable Cost
Range
Sl.No
Category and area
Cost range in Rs.
lakhs
1
Exotic (1599 Sft)
35.00 - 40.00
2
Classic (1487 Sft)
22.50 - 36.00
3
Intrinsic (1150 Sft)
17.40 - 25.00
4
Basic (798 Sft)
10.80 - 18.00
5
Civic (545 Sft)
6.30 - 11.35
No Hidden costs and extras
Tripartite win – win relation
Buyer
APRSCL
Building
Trust
Bank / FI’s
Issues
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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
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
Is Rajiv Swagruha CRE ?
Categories of Housing initiative
Subsidized
Affordable ?
Real estate
Needy & political
Needy & Non political
Business &
investment
Poor
Moderate
Hard earned money,
deliberate saving,
Home loans
No monetary
commitment –
Free
First House
Limitless
Missing - Advocacy
Rich
Surplus money
2nd House
onwards
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
Seeing is believing … visit us
THANK YOU