Having revolutionised the automobile segment by offering the world's cheapest car, Tata Group seems to be aiming at revolutionising the real estate sector by offering affordable 'nano' houses.
The company is offering three types of flats. A one-room flat with a small kitchen in an area of 283 square feet, a one-room flat with a large kitchen in an area of 360 square feet and a one-bed room flat with a hall and kitchen in an area of 465 square feet.
Tata Housing, a subsidiary of Tata Sons, has launched Nano-housing project in Boisar in Maharashtra.
Tata Housing, a subsidiary of Tata Sons, has launched a low-cost housing project called the Shubh Griha (auspicious home), joining a group of Indian developers who have moved to the affordable housing segment, as demand dries up for more expensive homes.
The first Shubh Griha Township will be developed at Boisar of Maharashtra state.
The company is investing Rs 1 billion (Rs 100 crore) to develop a 1,200-unit township at Boisar, a town on the outskirts of Mumbai. The project would be completed by 2011.
Costs of these flats will vary between Rs 390,000 to Rs 670,000. The company's aim is to provide affordable housing solutions to the common man.
"There are 25 million house demand in India, so based upon it we find out how the product can be developed. Since this is a different product therefore you will have to consider the size, you will have to optimise the space and there is something you will in real estate termed as loading, you will have to minimise the loading. Taking all these three aspects then finally comes the price point," said Rajiv, an engineer with Tata Housing.
"We are targeting a segment which is like Rs 150,000 to Rs 200,000 income household, so taking all these factors into consideration we come out with the product which is called Nano housing," added Rajiv.
The company has also tied up with state run State Bank of India and Housing Development Finance Corporation Limited to provide finance options to the potential buyers.
