The GST rate has also been lowered at 8 per cent for affordable housing projects.
New Delhi: Realty firm Migsun plans to invest about Rs 500 crore to develop an affordable housing project in Greater Noida.
The company will develop 1250 flats in this 5-acre project. The apartments are priced in a range of Rs 16-26 lakh.
"We have launched a project Migsun Vilaasa in Greater Noida recently at a very competitive price. We have already sold about 900 flats," Migsun MD Yash Miglani said.
When asked about the investment, he said it would be around Rs 500 crore including land cost. The investment would be funded through internal accruals and advances from customers.
The project would be completed in the next 2-3 years. Affordable housing has gained momentum on the back of infrastructure status and interest subsidy offered by the government.
The GST rate has also been lowered at 8 per cent for affordable housing projects, leading to higher demand and supply in this segment.
In April this year, Migsun had announced a low cost housing project at Ghaziabad with an investment of about Rs 1,000 crore.
The company would develop 3,000 housing units under the central government's scheme Affordable Housing in Partnership (AHP) Pradhan Mantri Awas Yojana.
"We are coming up with an 11-acre project Migsun Atharva at Rajnagar Extension. We will build about 3,000 units, of which 800 units will be for economically weaker section (EWS) to be allotted by the government under this scheme," Miglani had said earlier.
The units allotted to EWS will be priced at around Rs 4.5 lakh, while the remaining flats will be sold at about Rs 10-12 lakh. Migsun, earlier known as Mahaluxmi group, has developed about 10 residential and commercial projects in Ghaziabad.
At present, it is developing four housing projects, comprising about 4,000 flats, at Noida, Greater Noida and Ghaziabad in Uttar Pradesh, with an investment of about Rs 1,800 crore. These four ongoing projects are expected to be completed in this financial year, Miglani had said.