Signature Sattva to invest Rs 500 cr on first housing project in Rajasthan
The land cost is fully paid and the company would take construction finance from banks
Realty firm Signature Sattva Infratech will invest Rs 500 crore over the next four years to develop its first project in Alwar, Rajasthan under the state government's affordable housing policy. The Gurugram-based firm has acquired a 27-acre land parcel at Alwar to develop 4,500 apartments in the two phases, said Parveen Aggarwal, the company's founder and chairman.
Earlier, Aggarwal was the co-promoter of Delhi-Based Signature Global, which is into affordable housing segment and constructing about dozen projects in Gurugram, Haryana. "We are foraying into the real estate sector with our maiden project at Alwar. We will develop about 37 lakh sq-ft area in this 27-acre project," he added.
The company will construct in this project a total of 4,500 units, of which 1,600 flats would be for economically weaker section (EWS) to be allotted by the Rajasthan government through draw. The price for units meant for EWS category has been fixed at Rs 7-10 lakh, he said, adding the company would sell the remaining units at competitive market price. In the first phase, Aggarwal said the company would sell flats in the price range of Rs 14-20 lakh.
The total project cost is about Rs 500 crore. The land cost is fully paid and the company would take construction finance from banks. Aggarwal said the company is exploring opportunities for affordable housing projects in Rajasthan, Haryana, Punjab, Uttar Pradesh and Maharashtra.
The company has ventured into real estate business with affordable housing project because there is a decent demand in this segment on the back of various incentives offered by the Centre for low-cost housing. The recent budget announcement to provide additional deduction of Rs 1.5 lakh on home loan interest for apartments priced up to Rs 45 lakh would further boost this demand, Aggarwal said. That apart, he said the GST is only 1% in case of affordable housing, which has already been accorded infrastructure status. The interest subsidy offered by the Centre would also be applicable in this project.