To Overcome slow down Realtors eye state's affordable housing plans

Hit hard by the slowdown, real estate players are now going innovative and trying to partner with the government to beat the low demand. Markets cheer election results
Sectors and stocks to look out for
Pick stocks on fundamentals
Five facts on stock falls
Short-term plans are safe bets

Real estate players are looking to tap the 4.33 lakh people, who were not allotted houses in the MHADA scheme and have approached the government with a proposal where they can cater to these potential buyers.

The Builders’ Association of India (BAI), which includes 10,000 real estate players throughout India, has written to the chief minister of Maharashtra requesting him to appoint MHADA and CIDCO as the nodal agencies for carrying out projects under the controversial Slum Rehabilitation Authority (SRA) scheme. Only 3,683 of the 4.33 lakh applicants were allotted houses in the random selection on Tuesday.

In a letter, a copy of which is with ET, BAI asked for MHADA and CIDCO to be appointed as the “official agency for development” for executing SRA projects. “These agencies could offer free rehabilitation component houses to slum dwellers by constructing multi-storied building as already provided in the SRA,” the letter added.

“While, on one hand, there is a low demand due to the slowdown, there are over four lakh buyers, who are willing to shell money to buy houses,” said Anand J Gupta, general secretary, BAI.

Under the BAI proposal, the government and the real estate players can come together and form a JV and accommodate these potential buyers. If the proposal is accepted, it is believed that the real estate players, who are going through quite a rough patch for a while now, would tend to benefit.