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Q.

Most of the reputed builders are focusing on building luxury houses. Low cost housing did not catch the fancy of many builders. Is it not a fact? If so what is the reason?

Asked by Good Citizen, 11 Jun '10 09:46 am
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Answers (4)

 
1.

(1)Motivation: Profit is the motivation for doing business. Realty sector is not an exception. Profit margin is high in luxury housing and there are buyers. So why should a businessman focus on social service which is after all the domain of the government?
(2)Land cost: Land costs in Indian cities are definitely higher compared even to Dubai. So it makes sense to build multi stories apartment blocks for the rich and super rich who can afford and pay for it rather than build low cost housing for the middle income group people who have a budget beyond which they cannot afford to pay. This is one way of recovering the exorbitant cost of the land.
(3)There are no specific policies, programs and encouragement by both State governments and Central government as far as housing for the middle and lower income group people is concerned. The best example is to check how the government manages the lands. It auctions off the lands to the highest bidder and it does not reserve the lands for th ...more
Answered by Tony Fernandez, 11 Jun '10 12:49 pm

 
  
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2.

Probably they want to earn for themselves the reputation of catering to the housing needs of niche customes- namely the rich..and this gives them the undue advantage of overcharging their residential accommodations because the urban elite, the rich and the neo rich will lap up everything lying down..!
Answered by thampy chacko, 11 Jun '10 10:21 am

 
  
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3.

Terraspace provides Flat Promoter Chennai, Apartments Chennai, Builder Chennai, Villa coimbatore, Apartments coimbatore, Developers coimbatore, Flats Chennai,coimbatore.
Answered by Idhayadulla, 16 Sep '10 11:55 am

 
  
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4.

Nowdays some builders start Luxury houses if water is provided?
Answered by AANEWS AGENCY, 11 Jun '10 09:48 am

 
  
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