TOI repor­ted this on 17^th July 09

Hary­ana has entered into a deal with real estate developers to provide afford­able hous­ing and is invit­ing expres­sions of interest for build­ing 8,000 flats in NCR areas in the state. In a move expec­ted to give a big push to the hous­ing sec­tor in Gur­gaon and Faridabad, the Hary­ana Hous­ing Board is in the pro­cess of invit­ing expres­sions of interest for build­ing 8,000 flats in these cit­ies and some other places in the national cap­ital region areas. This is in addi­tion to the 38,000 hous­ing units, major­ity of them in NCR, planned in the next two years.

Under the latest pro­ject, the state will enter into an agree­ment with real estate developers to provide afford­able hous­ing to middle and lower middle class under the pub­lic private part­ner­ship mode.

‘‘Since we do not have land in Faridabad and Gur­gaon, we will be join­ing hands with private col­on­izers whose pro­jects have been stuck due to the (eco­nomic) slow­down. We’ll prefer those who have the licence, and then those who have enough land,’’ said S P Gupta, chief admin­is­trator of the hous­ing board. The announce­ment fol­lows chief min­is­ter Bhupinder Singh Hooda’s assur­ance to developers that steps will be taken to counter the slump in the real estate mar­ket. It will also ful­fil his com­mit­ment of provid­ing cheap hous­ing to loc­als, espe­cially those in NCR cit­ies of Gur­gaon and Faridabad. Among the other areas selec­ted for the pro­ject are Bawal (in Rewari dis­trict close to Gur­gaon), Badhi (Sonepat) and Kar­nal. Offi­cials claim that around 828 units would come up at Badhi, a town­ship to the north of Delhi.

Analyst’s Opin­ion:

* There would be Sup­ply of approx. 50,000 acres of R– Zone developable/ urb­an­iz­able land in Delhi. Hence more land avail­able for development.

* Land prices in Delhi even today is 60% lower than Gur­gaon, it means lower FSI cost.

* Devel­op­ment norms in Delhi are likely to be more simplified.

* Qual­ity of con­struc­tion is likely to be bet­ter in Delhi.

* Hary­ana Gov­ern­ment likely to con­struct houses in Price range of Rs 20– 25 Lacs.

Above points indic­ates that, If Delhi prices are x, Gur­gaon prices has to be x-20% (20% lower than Delhi) .