REAL ESTATE SECTOR BANKS ON INNOVATION

The Next Nano in India could be an affordable home. A section of realty players are at a striking distance of developing innovative methods of constructing parts of a building on a large volume, and then transfer those to the actual sites. This could significantly lower the construction costs which in turn will enable builders to make a foray into commercially viable low-cost housing, sources in government told Sunday ET.

Ajay Shankar, secretary, department of industrial policy and promotion (DIPP), did not elaborate how soon that could be a reality, but said, “Yes, the next Nano could happen in realty. Developers will be able to sell houses at a low cost because of technological innovation.” Significantly, the DIPP handles the issues related to the granting of patents. SundayET, however, could not verify whether any prominent developer filed patent applications on building-innovation. In fact, the basic premise of the Nano car, which will cost just Rs 1 lakh in the market, is based on Tata Motors’ technological innovation which is guarded by as many as 34 patents. “As the government is increasingly forcing developers to earmark a section of houses for low income category, it’s not surprising that some realty players are resorting to technological innovation to build homes at a very low cost, which will give them a profit as well. For low cost housing, there’s also a possibility of getting subsidized land,” a government official said.

Cushman & Wakefield’s executive MD Sanjay Verma said mid to lower segment houses were important as 70-80% of the demand came from there. “The slowdown is forcing developers to look at this segment now as it has become difficult to push for luxury products. But technological innovation will not be enough. Developers must work on other areas to make affordable housing financially viable,” he said

                                                                             Courtesy:- ET dtd:- 12th Oct.2008