The concept of Nano homes is picking up fast and on Wednesday Tata Housing announced plans to provide 'value homes' with houses priced between Rs 4-7 lakh.But has the launch come a little too late?Well, the youngest CEO of the Tata group has done a Nano, finding gold or shall we say, housing at the bottom of the pyramid Subh Griha, a Rs 100 crore township project across 60 acres in Boisar, an industrial hub 100 kms from the heart of Mumbai.
Brotin Banerjee, MD & CEO of Tata Housing, said, "The Tata name will give a lot of surety for people wanting to invest in their first home. It is an innovative sharing scheme with the landowners. We will have control of the project."
However, even though most houses are priced between Rs 4-7 lakh, not everyone is impressed this time.
Pranay Vakil, a real estate analyst at Knight Frank, said, "The success of the project depends on the connectivity that they are able to offer and the infrastructure that they provide."Well, the pricing may not be as attractive either since the rate works out to around Rs 1200-1400 per square feet, slightly higher than the going rate in that area. Although Tata Housing is betting on the brand equity, the trust factor and the facilities that will come with the project, profitability is another question mark. However, the company plans to make good by having a mix of low cost and affordable housing at the same place. "Out of the 2500 flats in Boisar around 1500 will be in the value housing category and the rest will fall into affordable housing. The affordable housing segment offers better margins," Banerjee said.
Meanwhile, the company plans to replicate similar models in NCR and in South. But in Mumbai, players such as Matheran Realty are already present in this segment and offer competitive rates. So, a Nano home within the next 2 years will not be an easy dream to build on and deliver.
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