Not many takers for APHB's much-hyped housing scheme

Koride Mahesh, TNN, Mar 14, 2010, 04.10am IST;
HYDERABAD: The much-hyped Andhra Pradesh Housing Board (APHB) venture-2 at Kukatpally has received lukewarm response from people. Slump in the real estate sector and price tag of flats (single and double bedroom) seem to have cast their spell on the venture. On the other hand, private firms are offering flats at a price less than the board’s rates.

Though the board planned toconstruct 1,500 flats for low income group (LIG) families, only about 460 applicants have paid 10 per cent of the flat cost and expressed their willingness to pay the remaining amount. Now, the officials have decided to wait till the end of March and go ahead with construction of flats whose owners have paid
10 per cent advance.

APHB has proposed to construct two bedroom flats (580 square feet) and single bedroom flats (460 sft) in over eight acres of land at venture-2 in Kukatpally Housing Board (KPHB) phase-IV. While the cost of a 2-bedroom flat is about Rs 8.5 lakh, a single bedroom flat has been pegged at Rs 6.75 lakh, which works to about Rs 1,500 per sft.

The venture notification was issued in 2005 and over 1,000 applications were received from citizens. However, APHB did not take up the project as the developer did not come forward saying the rates were not viable for them. The board kept quiet for some time due to recession and slow down in real estate activity.

After several suggestions from people and builders, the board increased the plinth area of the double bedroom flat from 400 sft to 580 sft and single bedroom one to 460 sft from the proposed 300 sft.

In October last, the board had called for Request for Proposal from developer for construction of 756 two bedroom and 756 single bedroom flats under G+9 floors scheme, including development of amenities and infrastructure facilities at the site. Bids were finalised a month ago.

Though the APHB managed to overcome the hurdle, the board is now worried over poor response from people. Since January 2010, intimation letters were being sent to the applicants,but some were returned undeliveredand some did not show interest to pay the money.

Sources said private builders were offering flats at the rate of Rs 1,000 to Rs 1,200 per sft in that area, but APHB had pegged the price of its flats at Rs 1,500 per sft, that too as tentative cost.

“Some private builders are offering ready-to-occupy flats at low price, while our project will be completed only
in June 2011. But APHB assures quality of construction with all facilitiesand amenities,” an executive engineer of the board said.

Board officials said another 400 applicants have responded to intimation letters and sought some time to pay 10 per cent of the proposed cost of the flat. They would be given time till March 31, he added. Source: TOI