Thursday, March 11, 2010

Developer sees potential in India’s mid-tier housing segment

There’s pent-up demand for half a million homes in the sector, says BPTP

BPTP Ltd, an Indian developer backed by Citigroup Inc and JPMorgan Chase & Co, aims to tap demand for housing from India’s middle class, managing director Kabul Chawla said here yesterday.

The nation has a pent-up demand for half a million homes in the mid-tier segment, where houses cost two million rupees (S$61,584) to six million rupees each, Mr Chawla, 37, said in an interview yesterday. That’s likely to widen by up to 100,000 homes each year, he forecast.

‘The mid-segment space is a great story and many developers are now moving there,’ said Mr Chawla. ‘We’ll get volumes from this robust segment.’ The New Delhi-based developer has sold 18,000 homes over the past five years in the middle tier, Mr Chawla said. He declined to provide any forecasts for BPTP’s sales ahead of the company’s proposed 15 billion rupees initial public offering. BPTP, which mostly develops property in the National Capital Region around New Delhi, plans to use funds from the IPO for new projects and to pay debt.

The company is awaiting approval from India’s capital markets regulator for the share sale, he said.

Source: Business Times, 11 Mar 2010

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