Hiranandani to launch affordable housing project by year-end

Hiranandani Constructions, one of the largest property developers in the country, looks to launch its first mid-income housing project by the year end, to mark its foray into the affordable housing sector.

Hiranandani is looking at cities such as Panvel, Nashik and Pune in Maharashtra and Ahmedabad in Gujarat to launch its affordable projects in the country. “We are working on the plans now. The launches depend on getting approvals from the government and authorities,’’ said Niranjan Hiranandani, managing director.

Apart from the parent company, other group companies such as London’s Alternative Investment Market(AIM)-listed Hirco Plc and Hiranandani Realtors could be roped in for its affordable projects, Hiranandani said. The apartments will start from 450 sq ft and come up on the outskirts of the cities, he said.

The company may also enter into a public private partnership (PPP) with the Maharashtra government, Hiranandani told news agency PTI on Thursday.

Hiranandani is known for its integrated townships at Powai in Mumbai and neighbouring Thane and the group is developing similar townships at Chennai and Panvel outside Mumbai. On an average, its apartments range from 850-900 sq ft and priced upwards of Rs 4,000 a sq ft.

He wouldn’t talk of the pricing of the apartments and the total number of units planned, saying it is too premature to reveal such details now.

The country’s biggest developers such as DLF, Unitech, Puravankara, Omaxe and others have already moved into the Rs 20-60 lakh category and launched apartments which are 20-30 per cent lower than prevailing prices to beat the market downturn.

Apartment sales dipped 70 per cent last year from their peak in 2007-08, as home buyers deferred home buys due to dwindling income and job losses.

“Affordable housing projects are nothing new for us. We sold flats at Rs 250 a sq ft in Versova and at Powai for Rs 500 a sq ft. After that, the tenaments have increased and land prices have gone up,’’ Hiranandani said.