vastoshodh Projects, the Pune-based real estate firm, plans to go pan-India with its affordable housing concept for the lower- and middle-income groups. For this, it has introduced a franchise model for its two brands — Anandgram and Urbangram — to meet the growing demand in this segment.

“It has happened for the first time that a real estate brand in affordable housing has im­pl­emented a franchise model,” said Sachin Kulkarni, managing di­rector of Vastoshodh Projects.

He said the firm will launch its first Urbangram project at Kirkatwadi on Sinhagad Road, about 15 km from Pune railway station, this month-end. Kulkarni said Pate Developers (land owners in this case) had given 4.5-acre land to develop 230 apartments. The UrbanGram pr­oject is co-branded as Pate-Vastushodh and will be com­pleted in 18 months. The bus­iness was based on revenue sha­ring model, he added. The 12-year-old firm has sold affordable housing units under its two brands in Pune in the range of Rs 3.30 lakh to Rs 10 lakh.

Kulkarni said the one and two BHK houses are in the size bracket of 618-630 sq ft and 745-890 sq ft respectively. The pre-launch price is 2,600 per sq ft in the range of Rs 17 lakh – Rs 25 lakh and the price is inclusive of all costs such as stamp duty, registration and lighting con­nection fees, said Kulkarni.

He said there will be nine buildings, each four-storeyed with lifts and generator backup. Along with car parking, the project provides amenities such as landscaped gardens, swimming pool, club house, internal tar roads, street lights, rain water harvesting and a playground with a cricket pitch, he said.

Quoting last year’s Mackenzie report, Kulkarni said there was a shortage of 26 million houses in the country in the affordable housing segment which required development of 104 crore sq ft of housing space.

“This franchise model offers a lucrative business opportunity for investors, land owners and de­velopers due to good returns on considerable low investments, si­nce such projects have low tu­rnaround time,” Kulkarni said.

“The firm has created a niche brand in the affordable segment in the range of Rs 5 lakh-Rs 10 lakh in Pune market. This franchise model is unique and it will sell like hot cakes,” Jai Singh, head, res­idential services, Jones Lang LaSalle, Pune, told Financial Chr­onicle. He said Vastoshodh Pro­jects developers were known in the market to sell their projects within three-four months of their launch. He said anyone earning Rs 20,000 to Rs 30,000 a month could afford these homes.

Kulkarni said the firm was tying up with two more real estate firms and a listed financial co­mpany to launch such aff­ordable housing projects in Guja­rat and Orissa next year. zz

michaelgonsalves

@mydigitalfc.com