We are looking to establish a real estate venture catering to affordable housing for executives in Delhi’s NCR region. The venture will start with the fast developing city of Gurgaon close to Delhi and will expand into other suburban areas viz. Noida, Faridabad, Ghaziabad and Greater Noida over the next 3 years.
We are planning to create a chain of affordable housing in and around Delhi’s NCR.
The USP of the project is fast execution period compared with conventional builders, complete transparency in the real estate process and affordability factor.
The real estate prices in Delhi NCR have shot up significantly over the last decade and owning a house or flat is outside the reach of salaried class.
The project will cater primarily to the fast growing salaried class. Each of the floors/houses will be priced at Rs. 1 Crore budget (US$ 250,000). Moreover, the project will be pre-approved by banks and will therefore enable end users to own their home against investment of only Rs. 10-15 Lakhs (US$ 20,000).
The typical investment for each of the discrete projects will be Rs. 4-5 Crores (US$ 750,000) and the proposed team will be capable of handling and delivering at least 4 projects simultaneously.
We envisage an initial finding of US$ 1 Mn for the first couple of projects. The target return will be in excess of 40% per annum.
The proposed project will set new benchmarks in terms of transparency and will be able to deliver upon the low cost promise owing to:
1) Buying of plots/land only with clear title
2) Fast execution time resulting in lower cost
3) Direct marketing and no involvement of intermediaries
4) Direct sale only to end user as against investor class that jacks up the prices
Debt equity and Quasi-equity options are welcome.
We are willing to offer a significant minority stake with pre determined exit option to the investors.