Hyderabad

We visited the Andhra Pradesh Housing Board ("APHB") last week in Hyderabad / Kukatpally after it announced the allotment of 1046 flats to the LIG segment - for more info on the project, see http://www.aphb.gov.in/Notification_WD.html.

As discussed in earlier posts, the biggest developer for EWS /LIG segments is the state (mainly through municipal corporations and housing boards) and in general, flats built by the state not only are good value (since there is an element of subsidy) but also generates a strong response from actual users. In the case of private developments, there is usually no screening of buyers - both in terms of income or actual users - so often the buyers are investors from higher income segments, not the group in which MHFC is interested.

Coming back to the APHB, we visited the site at Kukatpally which was very central and seemed prima facie attractive (right next to the site was a private development coming up at a rate / sq ft approx double that of the state project). We also met with officials and inferred from discussions that there were several allottees who were finding it difficult to raise financing for precisely the reason that MHFC exists - because the allottees lacked documentation and could not qualify for loans from mainstream banks. We hope to help these allottees and also help buyers on other housing board projects coming up in other cities and towns in Andhra Pradesh (over 5,000 "Siddhi" flats for the urban lower income segments to be offered in 2010). We felt that if we spread the word (that there is an institution like MHFC to support the informal sector) early, then the response to the state projects, while already strong, might be enhanced as more from the informal sector would come forward and apply for an affordable home.

Demand for EWS / LIG - new projects sold out

Re the Sanskruti apartments project (see blog post dated Dec 19, 2009), for 67 flats - this has already been sold out (in less than a month of being on offer - even without any real marketing by the builder / agent) - another sign of the demand for clear title, decent quality homes in the Rs 5-7 lakh price range in the Virar area.

Also, in the latest MHADA round (for sale of 3394 EWS / LIG homes), which closed Jan 31 - the total applications received are about 3.3 lakhs - or over 100 apps recd for each flat on offer.

For more info, see link below:
TOI article on MHADA sales - Jan 2010

pune project launch

I think the biggest learning for us has been the lead time taken for a project - from initiating discussions with builders, waiting for final drawings, land acquisition and and plan approvals to the actual launch of the project.

But pune was slightly different - particularly Sachin and Nitin of Vastushodh developers. Right from our first meeting to the final project launch (a period of less than 3 months), we were really impressed at the amount of thought and research that was put into the planning of 'Anandgram'. Obviously they had the benefit of studying earlier projects in low-cost housing, but full credit to them - it was a very methodical and a professional effort.

('Anandgram' is a low-cost housing project coming up near a small town called Yavat - about 40km from Pune city on the Pune-Solapur highway. It is well connected by bus and suburban trains to Pune (35 min train ride to Pune station). The project is about 2km from the Yavat railway station and just off the main highway. With good connectivity to Pune city, and priced between 3.5lakh (1 Room Kitchen) to 6.5lakh (2 Bedroom Hall Kitchen), it offers great value for money.)

The launch of 'Anandgram' was held couple of days back on Friday. Ads in the local papers and jingles on radio stations attracted a lot of people to the site, the builder had organized free transport to and from the site for the convenience of prospective buyers.

We were present on all three days of the launch - in fact we went a day earlier to set up the MHFC stall. On Friday we had one loan officer at our stall, but due to the overwhelming response we sent two more for Saturday and Sunday.

Overall it was a successful launch, a substantial part of the project got sold out in the first three days and also quite a decent percentage of the clients were from the informal sector. I think we would have a better idea on the profile of the people who visited/booked in the project in a couple of days (after collating the data collected by the loan officers at site). so more to follow on that...

Mumbai Marathon - MHFC running for MMC

On Jan 17th, the entire MHFC team will be running in the Mumbai Marathon (despite the fact that some of us shouldn't even be jogging) - all for a good cause - to raise money for Mumbai Mobile Creches - an NGO which looks after children on construction sites (for more info, please see http://www.mumbaimobilecreches.org/)
No pressure at all - as we know that many of you already support other organisations - but it would be great if you could help make a difference to MMC's work and add a contribution to the funds we are collecting by writing a cheque in favour of "Mumbai Mobile Creches" and mail to us at:
Micro Housing Finance Corporation
#3 Victoria Building, 1st Floor
S A Brelvi Road
off Horniman Circle, Fort
Mumbai - 400001
For those of you who are tax conscious, there is good news. You will get an 80 G tax exemption on your contribution. When else will you get an opportunity to make us run and also let the Indian Government pay for the privilege ?

New project approved in Virar (East)

MHFC has just approved a project in Virar (East) – Sanskruti Apartments. This is by the same builder of an earlier approved project – Vaishnavi Sai Complex – also in Virar (East) – where all 328 flats were sold out. This new project is small - 67 flats of which about 30 are in the smaller 1 RK (approx 350 to 400 sq ft size) category and thus less expensive (starting at about Rs 6.2 lakhs all inclusive). Booking opened Jan 1 - and MHFC has negotiated for its clients a special rate (Rs 50/sq ft less than the public rate - or approx Rs 20,000 savings) for a month. We are in discussions with vendor associations, NGOs and MFIs, who deal with the informal sector, and expect to help place the flats by the end of Jan.

For detailed information, see http://www.mhfcindia.com/approved-project.html OR please call our rep at the site, Savio d'Souza on 9821730702.

Note: MHFC is NOT a builder, and is not responsible for the quality and title of properties even if approved by MHFC for customer financing – buyers need to make independent verifications. We also do not receive any commissions from the builder. Our interest in spreading the word is solely to bridge the information gap – to make those in the informal sector aware of projects aimed at the LIG segment, and further, to make them aware of financing available.