The Haryana affordable housing model should be adopted by all states of India to provide housing for all, said Pradeep Aggarwal, chair of the Assocham National Council on Real Estate, Housing and Urban Development.
“The Haryana affordable housing model is the best available simply because of the feasibility and abundance of projects in the pipeline. Apartments are actually delivered to those in need. And all states should adopt this model,” said Mr Aggarwal, who is also founding chairman of real estate firm Signature Global.
“The real proof of success lies in the actual delivery of affordable housing to local customers that meet the mandated criteria,” he added.
The epicenter of Haryana’s push for affordable housing is Gurugram, which has about 125 affordable housing projects and more than 1,000 units in various stages of development, he said.
Under the Haryana Urban Development Authority (HUDA) Affordable Housing Scheme, the price for an apartment starts at 26 lakh, plus 1% GST, for a 2BHK unit. An amount of 2.67 lakh is provided as a subsidy by the government under PMAY. The entire allocation process is online and transparent, which inspires confidence among homebuyers, Mr Aggarwal said.
“The number of affordable housing units to be created for the people may easily increase to 2.5 lakh apartments due to favorable government policies and other triggers such as the Delhi-Mumbai corridor, the development of the Dwarka Expressway and elevated roads,” he said.
“As of November 2014, we at Signature Global have a current portfolio of 28,786 units in a total of 30 projects and have delivered over 8,598 residential and commercial units in a total of nine projects in Gurugram, Karnal and Vaishali,” he said.
“More importantly, we completed projects early and even received an award from the Haryana Premier,” he added.
He said the company is one of the key players in the affordable housing business in Haryana, which has greatly contributed to the success of the initiative. It has used economies of scale with providers to keep costs under control. “Our pre-sales have grown exponentially from £900m in FY2020 to £1,750m in FY21 and we are expected to reach around £2,500m in FY22. We are committed to delivering completed projects within the stipulated timeframe of 48 months from the environmental clearance date,” he added.
Signature Global has gross debt of around £700 million and its pre-sales to debt ratio is one of the lowest in the industry, according to market experts.
The company has attracted investors such as IFC, HDFC, KKR, Kotak, and ARCA, among others.
“The success of each of our affordable housing projects indicates a strong demand for quality homes from trusted brands that have a proven track record of excellent value for money,” added Mr Aggarwal.
