The concept of affordable housing has become the key under present conditions, not only to revive real estate sector, but also to meet the requirements of a large number of end users. This is so, particularly, as a large number of Indian households with incomes in the range between Rs 2 lakh and Rs 10 lakh, can buy house in the price range of Rs 10 lakh to Rs 60 lakh. But, in the last couple of years, as developers started constructing high-end apartments, the specifications of houses have gone up, with vitrified tiles, high-end bathroom fittings and costly paints being the norm. Besides, most constructions, even the low-rise ones, have the provision for underground parking, which jacks up the cost of construction substantially. In some of the constructions, builders have used costly granite flooring even in the common area. These specifications had driven the cost of construction to the range of Rs 1,600 per sq ft to Rs 3,000 per sq ft.

As the cost of land varies between Rs 500 per sq ft to
Rs 10,000 sq ft, the minimum selling pressure of apartments in metropolis like Delhi-NCR is Rs 2,400 per sq ft to Rs 15,000 per sq ft, including the developers’ margin and marketing expenditure.

But now, things have changed and developers have been forced to cut prices. The demand is mainly in the range of Rs 1,500 per sq ft to Rs 2,500 per sq ft for apartments. That means, a developer says, the cost of construction should not be allowed to go beyond Rs 800 per sq ft, while keeping land cost between Rs 300 per sq ft and Rs 500 per sq ft.

Buyers should not insist upon costly interiors like marble or granite flooring-typically, one must look for a better bargain in the form of location of a house and the quality of construction with the frills done away with to reduce cost of construction, says

Many developers have started offering both the options-bare apartments, with minimum interior fixtures and fully loaded ones with vitrified-tile flooring and wall fixtures, and bathrooms with latest gadgets like Jacuzzi. The difference in the selling prices between two such flats of three-bedroom apartment of 1,600 sq ft is Rs 10 lakh.

If one has money to pay, then the fully loaded flat is a good option as it will save a lot of time and added bother to get the apartment done up with all the fixtures. But, if one is borrowing to buy, it is better to go for a bare apartment, with minimum fixtures, so that the repayment burden could be reduced. One can do up the interiors whenever there is money in hand. Nowadays, a number of contractors can be hired, who do the interiors of one’s choice.

Interestingly, with the input cost falling, the cost of construction can be brought down to Rs 800 per sq ft, without compromising on the quality. Nelson India, a subsidiary of US-based architect firm in a report says that a good function house can be constructed at around Rs 800 per sq ft, but for this, it suggested that buyers should not insist upon costly interiors like marble or granite flooring and Jacuzzi in the Bathroom.

In fact, a senior architect of Nelson India said it is better for the end users to do up the interiors later when they have some surplus money. At the time of buying a house, a typical middle class individual must look for a better bargain in the form of location of the house and the quality of construction even certain specifications could be done away with to cut cost of construction.

According to a study done by Nelson India, if the vitrified ceramic tile flooring is replaced by terrazzo flooring, washable oil bound distemper paint by dry distemper, concrete counter slab with granite slab and stainless sink in kitchen by concrete counter slab with Kota stone slab and vitreous China sink and marble flooring in common areas with Kota stone flooring, the cost of construction could be brought down substantially by Rs 350 per sq ft. Besides, cost can be saved in the construction of doors, windows and exterior finish. The total savings that can accrue through these measures will be in the range of Rs 3, 50,000 to Rs 4, 00,000 in a 1000 sq ft two-bed room apartment, which is substantial for a middle class buyer.

The report says substantial savings may be achieved by doing away with unnecessary façade in a building. In affordable housing, the design should be such that optimum utilization of space may be achieved.

It suggests that to maximize living areas and make the unit functionally efficient and flexible for furniture arrangements, supporting areas like entrance lobbies, connecting corridors between rooms and balconies must be minimized.

At the same time, effort should be made to carve out toilets and kitchens on minimum area with efficient utilization of space and sensible layout of fixtures. Storage areas (built-in cupboards, lofts) should be integrated into the design. To achieve maximum living spaces, the internal walls should be minimized and made common between units to the maximum extent.

Common circulation areas for a cluster of dwelling units should be minimized in a manner that it caters to a maximum number of units. In the process, the share of the common circulation area to each unit is consider-ably reduced.

The report suggests that in the low-rise construction, basement should be avoided. It says construction of basement increases the cost of construction by Rs 100 per sq ft, which means Rs one lakh in A 1000 sq ft house.

However, one cannot do much in cutting the cost of land. If you want to pay less, you will have to move away from the central part of the town. But as the government is investing in improving public transport system, you can think of buying a house away from the central part of the township. But, before doing that, you must find out what kind of public transport system will be developed in the next couple of years when you will take possession of the house. If the Metro is to come to that area in the next couple of years, you can easily shift your residence.

In area like Mohan Nagar on National Highway 58 in Ghaziabad, Crossing republic on NH-24 and Nahar Paar area of Faridabad, and in Manesar, the land costs are in the range of Rs 500 per sq ft to Rs 1000 per sq ft. therefore, builders can offer apartments in the range of Rs 1,800 per sq ft to Rs 2,300 per sq ft- that means, a two-bed room flat can be available for Rs 18 lakh to Rs 23 lakh.

Courtesy Times Property dtd: 14-02-2009