New Delhi: Hiranandani Communities plans to invest about 500 crore in its upcoming industrial park in Pune, managing director Niranjan Hiranandani said on Friday.

The Mumbai-based real estate firm owned by Hiranandani is venturing into building industrial parks by the end of the year, Mint had reported on 2 August.

The company plans to set up its first industrial park over a land parcel of 250 acres in Pune, followed by Chennai where it owns a 160-acre plot.

Construction at the Pune land plot is expected to start by the end of the year, and the first phase would be built over an area of 50 acres.

The company is yet to finalize a budget for Chennai project, which is still in planning stages, said Hiranandani.

Hiranandani plans to leverage the government’s push to promote manufacturing in the country through its Make in India campaign.

The company also plans to make a strong push in the affordable housing segment with projects coming up in Thane and Panvel in Mumbai as well as in Pune and Chennai.

High cost of land is a major bottleneck in developing affordable housing especially in regions like Mumbai and Delhi, said Hiranandani at a convention organized by National Real Estate Development Council (NAREDCO).

NAREDCO is a real estate body under the aegis of Ministry of Housing and Poverty Alleviation.

The real estate and construction sector in India is expected to be the third largest globally by 2030 and contribute over 15% to Indian GDP, according to a report jointly released on Friday by NAREDCO and KPMG at the convention.

The salt pans in Mumbai should be freed up as soon as possible to create space for affordable housing, Hiranandani added.

Mumbai’s revised development plan that lays out the blueprint for the city’s development till 2034, includes proposal to create affordable housing by freeing up land parcels currently designated as no-development zones and natural areas like salt pans.

Affordable segment dominated the new launches in first half of 2016 with total affordable units doubling to about 17,000 units from year earlier, according to a report released by real estate consultancy Cushman & Wakefield (C&W) on Thursday.

The highest supply of affordable housing was recorded in Pune at 4,170 units followed closely by Bangalore at 4,155 units.

In Mumbai, the country’s most expensive property market, 11,283 affordable and mid segment units were launched in the first half, the report said.