The Value & Budget Housing Corporation will now be adopting a strategy of developing smaller five-acre housing projects that do not require the environment ministry’s clearance and approval therefore saving the company at least 12-18 months. VHBC has decided to cap the height of the buildings at 15 metre so that they don’t require Airports Authority of India (AAI) clearance either saving further time.
The company’s first project was in Bangalore was built on 300 acres of land. All real estate projects with over 200,000 sq ft built up space need environment clearance from state govt. any building taller than 15 metre also requires clearance from AAI to ensure it does not fall in the flight paths. Developers say, delays in getting government approvals push up project costs significantly.
In mean time incurrent overhead costs. Delays in land delays increase in the cost projects which ultimately developers hike prices for that. Rao, says therefore the project becomes less affordable and fewer middle-class can buy it. It’s almost as if the government of this country wants only the rich to buy homes. VHBC which was set up in 2009 and sells homes in the 8-22 lakh price range was hoping to build 15 housing projects by 2013. This plan was delayed because of approvals coming in late. Currently the company has six projects and by the end of this year it will have 10 projects. Rao says, by June next year we will have 15 projects which is exactly a year and half late.