Realtors cut price of flats to lift business
May 9: Taking a cue from Tata group’s “Subha Gruha”, realtors have slashed prices of apartments considerably to suit the wallets of the middle class.
A two bedroom flat with all basic amenities at Rs 10 lakh was a dream last year. However, with changing times, it is turning into a reality now.
“We can build a small flat at less than Rs 2.92 lakh,” said Mr C. Sekhar Reddy, president State Builders’ Forum.
“It is possible in all the adjoining municipalities which were recently merged with the Greater Hyderabad.”
According to him, in 225 square feet, a decent one room and kitchen flat can be built at a cost of Rs 1,300 per square feet and sold for Rs 2.25 lakh.
Several builders have started focusing on budget apartments. The basic model has a room, a kitchen and a bathroom.
And to get back customers, real estate giants like Ashoka Builders, Aliens and PBL Constructions are coming out with additional facilities.
Apartments under construction in and around Hyderabad, Guntur, Vijayawada and Visakhapatnam are now being offered 20 to 30 per cent discount, and most of the builders are offering children’s play area, cable connection, water filter unit etc for free.
Consider the case of Ashoka Builders: it only used to take up projects to cater the high-end consumers with prices ranging from Rs 5,000 to Rs 8,000 per sq.ft.
Now it has launched a project to build 100 flats at Madhapur at Rs 2,500 per sq.ft price.
“The middle class segment has turned out to be a gold mine. So we have changed our plans to suit their needs and purses,” said Mr K. Laxma Reddy, chairman of Ashoka Developers and Builders Ltd.
Mr Sekhar Reddy says prices can be reduced further if the government provides loans to this sector at 3 per cent interest and changes are made in the floor space index.