Arihant to invest ₹4,000 crore over 7 years to develop affordable houses

Mumbai-based BSE-listed Arihant Superstructure Ltd said it will continue its focus on affordable housing sector.

The company said it plans to invest ₹4,000 crore in the next seven years to develop affordable housing in Mumbai and Jodhpur.

“We will continue to focus on affordable housing. This segment is showing buoyancy. We are developing close to 13 million sq feet over the next seven years,” said Ashok Chhajer, CMD.

He said sops like interest subsidy and lower rate of interests augur well for the affordable housing.

Chhajer said that the company was focussing extensively on Rajasthan and MMR region as both these States have extensive housing needs. “Almost 16 per cent of the total urban housing units required by 2022 will come from Maharashtra and Rajasthan alone,” he said, adding the company is also looking at opportunities in other States.

A Cushman and Wakefield report said the supply of affordable homes went up by 27 per cent after the government accorded the sector the infrastructure status and extended interest subsidy.

During January-September 2017, the supply of affordable homes increased to 26,081 from 20,485 houses in the corresponding period last year.

Among these new launches, as much as 40 per cent of affordable housing projects were launched in Mumbai followed by Kolkata and Pune, the report stated.

Chhajer said the company will be funding its projects through a mix of internal accrual and debts.

“We are expecting a project realisation of ₹6,000 crore,” he added.

The company achieved a turnover of ₹186 crore last fiscal.

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