Ansal Properties and Infrastructure plans to invest about Rs 500 crores to develop 10,000 affordable homes priced between Rs 2.5 lakhs and Rs 9.5 lakhs. The housing units, which will come up in UP and Rajasthan, are expected to be ready for delivery in one and a half years.

According to Pranav Ansal, Vice-Chairman and Managing Director, the investment amount is to be anything between Rs. 400 crores and Rs.500 crores over the next 18 months, including land.

The funding will be done through internal accruals and advance against sales. The company already has land in possession and approvals to develop the projects. The banks are also offering lower interest rates for homes below Rs 20 lakhs. As for the margins, they will be low – at about 20% considering the present input cost, the MD explains.

The company has sold about 2,000 such units that were launched in November last year in these two states. The new projects would come up in Lucknow, Agra and Meerut in UP and at Jaipur, Jodhpur, Ajmer and Bhilwara in Rajasthan. The size of the flats would vary from 200 sq ft to 850 sq ft and the construction cost would be Rs 500-550 per sq ft.