New Delhi: Realty firm Omaxe on Wednesday said it will launch 10,000 low-cost homes in Indore in February, which would be developed at about Rs1,000 crore.
The company will launch the flats in the range of Rs4-10 lakh.
“We will launch 10,000 affordable houses in February at a 200-acre township in Indore,” Omaxe chairman and managing director Rohtas Goel told reporters on the sidelines of an Assocham function on real estate.
Asked about the investment, he said the project cost would be about Rs1,000 crore and the size of the flats would be 350 square feet upwards. Construction would be complete in 18 months.
Goel noted that the company would sell these units at a margin of 10-15%.
In May 2007, Omaxe had announced that it would develop 10 lakh affordable homes for low-income consumers in five years at Rs80,000 crore. To take its plan forward, it would launch similar projects in Raipur, Rohtak, Sonepat, Chandigarh, Bhiwadi and Ludhiana.
While Omaxe would develop affordable housing in North India, in the south, Mumbai and Ahmedabad, such projects would be launched by a group company ‘National Affordable Housing and Infrastructure Ltd´, Goel said.
Omaxe would soon launch housing projects at Rs12-19 lakh at Faridabad, Greater Noida and Ludhiana, he added.
On correction in property prices, Goel said the rates have declined by 10-40% across the country and there is no further scope for reduction.
Stating that sentiment in the market has improved after the stimulus package, he said states should also pitch in to boost housing by reducing stamp duty to 2-3% for the next two years, raising the density norm and offering interest subsidy to buyers.