Tatas to offer affordable housing

By Special Correspondent
Mumbai, October 14: The Tatas are restructuring the housing business division of the group by shifting a division that builds low-cost houses to a new subsidiary in a bid to tap the rising demand for affordable homes.
The new unit of the Tata Housing Development Company will invest over a whopping 2,000 crore to construct houses costing between 5 to 35 lakhs. Tata Housing’s first economical housing project, widely known as Nano housing, is coming up at the Western Mumbai suburb of Boisar.
According to recent study by real estate services firm Cushman & Wakefield, Indian builders will need to construct 3 million houses in what it termed the “mid-income and affordable segment” between 2010 and 2014 to counter the surging demand. The report did not define these terms however.
“Twenty new projects are in the queue. The new subsidiary will execute these projects,” a senior real estate industry official familiar with the matter said. A spokesman for the Tatas said they did not want to comment on speculation.
Tata Housing, which revived its operations in 2006 after rising disposable incomes sparked demand for residential properties, will finance the proposed investment through a combination of an issue of non-convertible debentures and internal accruals, according to the official. “A new team is also being set up to spearhead the low-cost operations,” the official added. The housing arm of the salt-to-software Tatas was set up way back in 1984, but remained inert till a few years back.
Tata Housing is currently developing eight projects spread over 40 million sq ft across seven locations in India, and is planning to develop a further 50 million sq ft through projects in 10-12 tier-I and tier-II cities.

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One thought on “Tatas to offer affordable housing

  1. Indian middle class can not afford a house especially in city like Mumbai. TATA’s new NANO plan may bring some hope to mumbaikar’s to have his own dream house. Not only in Boiser, Tata’s should come forward in other areas of Mumbai suburb or in the area of Panvel or Karjat and start such ‘Nano housing sceme’ which will benifit thousands of Mumbaikars. We all should appreciate the Tata’s objectives and they have have taken social responsibility as a big business house in India.According to me all major business houses come forward with the same vision.of Tata’s and Central and state Govts.also should give Tax andother incentive so that all big business houses sholder thier social responsibility towards housing, which is a basic necessity.

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