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S. Shanker

Mumbai, Aug. 11 The stage is probably set for realtors to take a fresh look at the bottom of the pyramid to weather waning demand rather than at the high-end super luxury offerings they churn out in numbers.

Mumbai-based Matheran Realty that focuses on low income group housing has come to understand the demand so much so that it has sought the assistance of post offices to vend its application forms for its low-cost offering at Karjat, near Mumbai.

The company is awaiting the formal nod from the postal authorities to sell its ‘application forms’ of Rs 100 each for 15,000 flats of 300 to 500 sq ft costing Rs 3-5 lakh, from Tuesday. “In any case, we will start issuing the applications from our office,” said Mr Pravin Banavalikar, CEO, Matheran Realty.

The promoters expect to sell close to 50,000 forms as they intend building two lakh such homes in the vicinity of the metropolis. Mr Banavalikar said the company during the last week received over 40,000 calls for bookings. Booking for the first phase, comprising 3,000 units, will close on August 20. Delivery will begin in January 2009 with 500 units to be handed over every month till June 2009.

Technology appears to be the prime driver of the project. The company has tied up with Sterling Construction Systems for cost-effective building system that does away with brick and plaster, with use of prefabricated fibre boards. The boards not only ensure a plaster-free finish but also provide for inbuilt ducts for power and water supply, saving considerable time and manpower cost.

More importantly, the promoters said they get about 10 per cent extra carpet area, as the walls are four inches as against the conventional 7.5 to 9 inches. Sterling Construction System Chairman, Mr Mark Taylor, says “in general the cost savings would be over 30 per cent, as ideally a 3,000 sq ft building could be erected in about seven weeks.

The company intends constructing 15,000 units at Karjat. It has zeroed in on additional 900 acres in the Mumbai suburbs and wait-listed applicants will be accorded priority in allotment, which will however have an escalation clause to factor in input cost. The township offers homes with integrated facilities such as schools, hospitals, theatres and retail outlets. The commercial space of about 15 per cent is expected to spruce up the margins better with a catchment of 15,000 households in the campus. London-based AIM listed company Eredene Capital invested Rs 131.2 crore in Matheran Realty for a 45 per cent stake recently.

More Stories on : Real Estate & Construction | Strategy | Maharashtra

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