New Delhi, August 19: At Rs 18,000-25,000 per square foot, Tehkhand in south-east Delhi could be one of the Capital’s most expensive new real estate projects. At about 500-odd flats, it could be somewhat exclusive too. And spread over 35.8 acres, these not-very-high-rise apartments, adjoining 3,500 low-cost houses for resettlement of slumdwellers, could well be the destination of not only the up-and-coming moneyed but of public-private partnerships (PPP) in the re-building of Delhi in particular, and India’s housing-challenged cities in general. Over the next two weeks, DDA and Kenneth Builders will sign an MoU that will enable work on this project near Okhla to begin. Says B S Jaglan, director land (residential), DDA: “The MoU should happen within this month and work will begin soon after.” A case filed in the Delhi High Court challenging that the change in land use from recreational (district park) to residential was illegal and should be quashed, had held up the project so far. Justice S Ravindra Bhat, while disposing of the petition, directed the DDA to “consider the objections”. According to Jaglan, “After complying with court directions, DDA has the green light for the project.’’ In one stroke, the Tehkhand project has created a win-win situation for four unique entities. For the government, this means revenues in terms of auction money, registration fees and, of course, the annual house tax. In addition, it gets to be seen as pro-poor by embedding low-cost houses for slumdwellers next to what could be the most expensive first sale in this city, ever. For 3,500 slumdwellers, Tehkhand could be a migration into high-end low-cost housing. The 280 sq ft, five-storeyed, single-room apartments, the specifications and facilities (primary school site, park, playground, shopping centre, religious site) for which have been detailed by DDA, will have 500 of Delhi’s extremely wealthy as neighbours. The prices of their houses, predictably, should rise; many of them will cash in on their new locational wealth. For wealthy buyers, it means getting a clean luxury property, a gated community, with access to top-of-the-line facilities, security, club, pool and shopping spaces. Something that the Capital has not seen for decades, the result of which has been a migration of middle- and premium-priced housing to suburbs like Gurgaon and Noida during the past two decades, and to Greater Noida, Ghaziabad, Faridabad and Kundli over the past three years. For builders, it not only means profits but showcasing their prowess for future projects, a sort of investment in being able to service PPPs, more of which are coming across the country. In this case, Kenneth Builders, a 50:50 tie-up between developer and coloniser DLF and financial services company Indiabulls brings project management and financial management skills together to create Tehkhand. The question is can Kenneth Builders create 3,500 low-cost houses and the related social infrastructure and still make money? Probably, and hence the sky-kissing Rs 3.6-7.5 crore per 2,000-3,000 sq ft apartment. Says Vipul Bansal, executive director, Indiabulls: “We are already being approached by several people for the luxury apartments, and getting feelers from agents.” Who would pay Rs 7.5 crore for something that you can get for Rs 1.5-2 crore? “You’ll be surprised,” says Bansal. Indiabull’s partner, DLF, which has delayed its IPO to around Diwali and is modifying it to iron out small shareholder wrinkles, was not forthcoming. Kenneth Builders made the winning bid at Rs 450 crore, more than double the Rs 204.4 crore reserve price. Even as it came riding India’s property boom, this bid left Delhi’s builder community open-mouthed. This is not a straightforward build-and-sell project; the social layering accompanying it is huge and at a scale not seen in this city so far. In fact, the success of this project could well determine the direction of all future housing-related PPPs, across the country. Once the plot is handed over to the company, it should take about 18-24 months to complete the project, says Gagan Banga, director, Indiabulls. Meanwhile, behind-the-scene work on the project has begun. Architect Hafeez Contractor has designed “about 20 options”, with the objective to create a “villa like ambience”. Says Bansal: “We should be able to launch the project and invite buyers within the last quarter of this financial year.” But whether buyers will queue up given the recent turn in property prices remains to be seen.
— Additional reporting by Gopal Sathe and Tanu Sharma |
