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‘Nano Homes’ Next??
Posted by Pradeep Sadanapalli | August 24, 2008 | 2,427 views
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Loading ...While almost everybody knows about Tata’s Nano, which has become synonymous with the ‘small car,’ many may not know about a ‘nano house’. What is this new concept in housing segment? Let us study this subject.
There has been substantial shortage in housing all through the 61 years of Independence. Despite a National Housing Policy under implementation and budgetary provisions for housing, there is not much of a change in position.
Private builders and promoters have been working overtime to complete projects early to avoid the time lag which causes variation in prices.
vAnd, the demand graph has been up for many years despite skyrocketing prices, especially in the metros.
When the cost of owning a house went on rising, because of expenses of material, construction, taxes/levies and the latest villain- increasing interest rates- various strategies were drawn up to lessen the burden on the buyers. The policy -makers clamped a Rs. 30 lakh ceiling on interest applicable for home loans, to insulate the middle class.
When the overall demand came down, apart from offering freebies, ‘mixed’ and small floor area flats were mooted as an alternative for the less affluent.
Mixed projects are where a housing /apartment complex consist of both residential and commercial areas.
The commercial block comprise of malls, multiplexes, service apartments, offices etc. The residential block will be exclusively for living and common facilities such as swimming pool, sports facilities, children’s park, and club houses. The residential block will again be divided into 1-2-3-4 bedroom apartments and studios.
vThe one-bedroom apartment is the housing equivalent of the Nano. According to newspaper reports, a leading builder has set up a wholly-owned subsidiary for building small houses/apartments in the range of Rs. 5 lakh to Rs. 15 lakh.
However, the concept appears to have caught on, though the demand for luxury villas and super homes from the upper class and wealthy will continue to be there.
In the days of the British Raj one-room houses were popular mainly among the babus in Delhi and clerks in banks and private companies in Bombay, which had common sitting-cum-sleeping rooms and a makeshift kitchen.
Locational advantage and proximity to the market and shopping areas were what people used to look for then. May be, this will continue to be the trend in the metros. Nano homes will be a substitute for them.
As most of the present generation youth are living for the day and not for the unknown future, whatever be the attractions, they may not change their lifestyle. Quality of materials used in construction will also receive closer scrutiny. Yet, there is always a particular target group for everything.
Who will be the main buyers of ‘Nano houses’?
The new generation clerks, teachers, Class IV employees of Central and State Governments and small businessmen may be the target groups.
Of course, the present inflation rate may defeat the nano plans. If the plans are to succeed, transportation will be the key, as the nanos will mostly be located on the outskirts of metros and in other small towns.
Low cost housing methods will have to come to the rescue of nano. Though Laurie Baker is no more, his construction technology needs to be commented upon in this respect. Similarly, pre-fabricated walls/ roofing can help. Subsidy for rainwater harvesting, solar heating, rural tag for interest rate etc may also be other motivating factors.
Another critical factor can be the underground water sources.
May be Cauvery and Krishna water projects bringing water to cities like Bangalore and Chennai might solve this problem to some extent.
How ‘nano’ will compete with the other segments need to be seen over a period of time when the growth in GDP picks up once the inflation is reigned in.
Yet, ‘nano homes’ may have come to stay in the face of growing demand from low and middle income groups.
SOURCES:
Hindu
Topics: Property Matters, Latest Trends, Real Estate |
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