Janaadhar Constructions, which has Janalakshmi Social Services, a non-for-profit organisation as majority promoter, has launched Janaadhar Shubha. This is Janaadhar’s first affordable housing project targeted at aspiring first-time homeowners among the urban low-income group.

Janaadhar received funding support from the Michael and Susan Dell Foundation to address the affordable housing challenge in urban India. Janaadhar is also supported by Central Bank of India in the form of project finance for construction. Janaadhar Shubha is intended for those urban dwellers who have long cherished a dream of owning a home, but have not been able to do that due to high costs.

Typical customers of Janaadhar are families with monthly household incomes of around Rs 15,000. Janaadhar Shubha comprises 1,140 flats with a saleable area of 700,000 sq ft and is located on the Attibele – Anekal road, 25 km from the heart of the city. With maximum effective use of space, Janaadhar claims it will provide homeowners a range of essential amenities, all at a very attractive price.

The amenities in the project include primary school, primary healthcare centres, retail shops, children’s play area, power back-up, 24-hour water supply, and 24x7 security systems. The first phase would see construction of 528 flats (1 bhk) of 400 sq ft each, priced below Rs 500,000 excluding property registration and other government charges. The first phase is expected to be completed by June 2011.

One of the challenges for first-time homeowners among the urban low-income group is the lack of access to mortgage financing. To make it easy for first-time homeowners to access mortgage financing, Janalakshmi Financial Services, also a social business venture promoted by Janalakshmi Social Services, focused on financial inclusion for the urban poor. It will provide housing loans for customers looking to buy 1bhk flats in the Janaadhar Shubha project. While Janaadhar Shubha is the first project of Janaadhar Constructions, the company intends to build on it and become a significant player in the emerging affordable housing space.

Ramesh Ramanathan, chairman & director, Janaadhar Constructions, said, “The housing and real estate space in India is fraught with many constraints, even for traditional institutions that are focused on prime market segments. In conceiving Janaadhar, we took on two additional challenges - first, address a new market segment of affordable housing – and this I means truly affordable, under Rs 500,000 for a 400-sq ft unit in a metropolis like Bangalore; and second, to do this in a unique social business model, combining a not-for-profit promoter company with a for-profit operating company”.

Geeta Goel, portfolio director, microfinance, Michael & Susan Dell Foundation, said, “We are confident that this project will showcase a scalable and commercially viable solution that addresses a large part of the housing shortage facing the urban poor in India. Our support to Janaadhar complements our broader efforts to improve the quality of life of children living in urban poverty in a sustainable manner.”