Land biggest obstacle to affordable homes

Hyderabad: Most of the real estate developers are catering the housing needs of the rich and upper middle-class segment of people, while the government is trying to construct double bedroom houses to the poor in Telangana. However, there are no affordable housing options in the budget of Rs 20-30 lakh for the below middle-class section of the society, particularly in the city limits.

To own a home in Hyderabad, it costs a minimum of Rs 50 lakh and above. There are no properties priced up to Rs 45 lakh available within the city. Only based on guideline value, a majority of residential flats are currently being sold here under affordable housing category. But the actual transaction prices are much beyond the Rs 45-lakh-price bracket.

The guideline value is the minimum value determined by the government for sale of a property. Based on this, the stamp duty and registration charges are assessed by the Registration Department. The market value is determined by the demand and supply as agreed upon by the buyer and seller. The difference between both these rates is the key reason for black money in the real estate.

Speaking on the sidelines of Naredco Telangana 12th Property Show, State Legislative Council Whip T Bhanuprasad Rao suggested the real estate fraternity to come out with a public-private-partnership (PPP) model to offer houses in a range of Rs 20-30 lakh to the below middle-class people in the city. He also asked the real estate bodies to prepare guidelines for affordable housing schemes.

However, the builders and developers say that it is not viable to sell residential properties in Hyderabad at a cost of Rs 20-30 lakh. Naredco Telangana President B Sunil Chandra Reddy says, "Land component is the biggest obstacle to take up affordable housing projects in the city. There is no point in constructing houses in city outskirts as daily commuting to the work places will be a tedious task for the dwellers."

Vijaya Sai Meka, Secretary General, Naredco Telangana, said: "The government shall provide land within city limits for development of affordable housing projects under PPP mode. Unless the government comes forward with some incentives to such projects, it is impossible for the builders to construct homes in the budget of Rs 20-30 lakh in the city."

Earlier whenever such discussions came around affordable housing, they ended up with the issue of rising land rates in the city limits. Several times, the government representatives have assured the real estate bodies to take it to the next level for bringing a solution but in vain. The State leaders have no determination to offer affordable homes to the middle-class people.