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Tatas now offer flats for less than Rs 4 lakh

Thursday, May 07, 2009 (09:41:26) Tags: Business, Real Estate, India Mumbai: The Tata group is coming up with Nano homes under the name Shubh Griha, priced between Rs 3.9 lakh and Rs 6.7 lakh. Thia First Township comprising of one bedroom-kitchen flats, to be built by the group's property development arm Tata Housing Development Company will come up in Mumbai suburb Boisar, in Thane district. This model will be later expanded across several metros, tier II and III cities in the country. The company collaborates with other developers like Puravankara, Omaxe and Housing Development & Infrastructure that have moved to the affordable housing segment, as there are no or few takers for expensive homes. Others including Mphasis founder Jaithirth Rao, NGO Janaagraha founder Ramesh Ramanathan and Bangalore based CSC Constructions are also said to be interested into entering this segment and are in the midst of drawing up their housing projects. India faces a shortage of 24.7 million dwelling units, with three-fourths of this deficit being in the middle and low-income groups. "The opportunity lies at the bottom of the pyramid as there is a huge shortage at this end of the market," Tata Housing MD Brotin Banerjee said. He added that the scheme was launched as a large percentage of migrant population in the low-income bracket lived either in rented or company provided accommodation. "Our study shows that around 48% of them are currently staying in rented accommodation." Shubh Griha is in line with the Tata group's philosophy of contributing and having a positive involvement with the society at large, Banerjee added. Similar to the distribution strategy for the Tata Nano, the allotments of the 1,000 flats in Boisar, to be delivered in about two years, will be selected through the lottery system. The apartment size will range between 283 sq ft to 465 sq ft each. The company, which is expecting a turnover of Rs 100 crore from the project, has tied up with SBI and HDFC to help potential buyers with finance options. The application form will be sold at Rs 200 and the initial booking amount has been fixed at Rs 10,000.(TNN)