Golden Gate Bets On Low-Cost Housing

Citigroup-backed Golden Gate Properties plans to invest close to Rs 2,000 crore over two years in affordable housing projects, a senior official said. The projects will be funded primarily through customer sales, apart from banks loans to the tune of Rs 500 and equity, Golden Gate managing director K Pratap said.

The Bangalore-based developer on Thursday announced plans to start construction on four township projects in Bangalore and Hyderabad, all grouped under the brand name Commune. A significant portion of each development will comprise low-cost housing units with an area of 995-1122 square feet.

“A large section of society is unable to own homes owing to spiraling real estate costs. The Commune has been conceived to fulfill this need-gap. The starting price for the affordable housing units will be around Rs 19 lakh. These properties will be on a par with premium developments in terms of quality, treatment and amenities,” he said.

Citigroup has invested Rs 150 crore in Golden Gate and Deutsche Bank $70 million. Golden Gate plans to expand to several southern cities with affordable housing projects.

Earlier this week, Bangalore’s Puravanakara Group also outlined plans to develop low-cost housing. The Housing Ministry estimates the shortage of homes in India at 24.71 million, most of it among economically weaker sections and low-income groups. Golden Gate’s first project, comprising 2,500 apartments on 30 acres, is located some four km off the road link to Mysore while the second will come up in the Sarjapur area on the city’s periphery on 100 acres.

In Hyderabad, the company has acquired land in Tallapur and Secundrabad. “Each project will be developed in a phased manner. The Bangalore model will be replicated across cities with some modifications to suit local tastes,” he said. The company hopes to drive down costs by acquiring land on the outskirts of cities and using modern construction techniques to bring down labour count by 75%.


  1. Real Estate Bangalore
    Posted August 26, 2008 at 12:44 am | Permalink

    Owing to the surge in renting and purchasing properties , thanks to the immense growth in IT industry …. the investments in real estate and on a constant rise …
    but it definitely is a good investment option… as the prices are bound to go up or stabilize at higher rates in the future …

  2. Posted August 26, 2008 at 2:39 am | Permalink

    Mumbai-based developer, Matheran Realty has come up with an integrated township at Karjat, 80 kms from Mumbai, where a basic one-room flat would cost as little as Rs 3 lakh. The cost of construction, at Rs 999 per sq ft, is a fraction of the Rs 2, 500-3,500 prevailing in other parts of the city as well as other major metros. At this rate, the bigger flats in the township, in the size of 500 sq ft and 700 sq ft, are priced at Rs 5 lakh and Rs 7 lakh respectively. The booking for the project has already been started and 3, 000 flats will be handed over in the first phase between January and June 2009. The name of the project is Tanaji Mulsure city (TMC).For more

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