It could well be termed a lottery with a difference. Anyone who has chanced to buy a lottery ticket at some point is aware that the rewards are huge for an almost minimal charge. Matheran Realty is banking on this for its first phase of 2,000 flats. Situated about 100 km from Mumbai in picturesque Karjat, this project will have apartments at 300 square feet each.
So, how will this work? The mechanism is pretty simple actually, with a person having to fill an application form which is priced at Rs 100. To make sure there is no unfair advantage, a person can fill in just one form ensuring everyone is in with an even chance. Besides, there is no question of picking and choosing since you just take the flat that comes your way. All the 2,000 apartments will be given to the winners through the lottery method. The price tag is Rs 999 per sq ft.

Matheran Realty is working with UK’s Eredene Capital and Philippines’ Sterling Construction Systems (SCS). The township, called Tanaji Malasure City, is now witnessing the first phase of construction. The plans by any yardstick are gargantuan—in all, there will be 2 lakh houses with each having an area of 300-500 sq.ft. Come January 2009, the first set of owners will be ready to move into their dream home.

SCS is banking on the paucity of affordable housing in Mumbai to drive its mega township. SCS president (marketing) Harinder Bhalla said, “We expect a huge response to the scheme”. There seems to be hope for those who do not get their allotments in the first phase. They will get preference when booking starts for the second phase.

That effort may be worth it since the project will be home to schools, colleges, hospitals and a retail centre. The entire exercise is expected to be completed over the next 10 years. All this will be over 100 acres. Eredene Capital will fund the project to the extent of Rs 131.2 crore with SCS offering technical support.

The big worry for most people is what the house will eventually cost? At the end of it, it will work out to Rs 3 lakh. Those who opt for the monthly payment option will need to shell out Rs 2,000. Speaking of construction technology, SCS will use prefabricated Hardiflex fibre cement boards. This has been used with some success for housing projects in the Philippines, Australia, Jordan, Vietnam, and in India. Importantly, it lowers construction cost by 15-20%, and construction is much faster.

With a price tag of Rs 3 lakh, this form of housing could work well for those in the Rs 8,000-10,000 salary bracket. In terms of profitability, there is always a question mark. Park Lane Property Advisors managing director Akshaya Kumar said, “Such projects are profitable though the margins may be lower than what premium property developers get” . Others tracking the industry think that low-cost housing will have acceptable levels of production quality and succeeds in cutting down frills such as high quality paints, open space and parking.