At least two of the top builders in the city - Rahejas and Hiranandanis - have decided to make a conscious shift to low-budget housing. And that's only part of the good news. The real surprises are the sites they have chosen - not some distant extended suburbs like Kalyan, Dombivli or Virar, but the more accessible and perhaps more acceptable Andheri, Goregaon and Malad.

Industry experts say this is a trend which was overdue following the near drying up of demand for high-end houses. The slump in real estate and slack business has forced developers to concentrate on `affordable housing' which are rather unflatteringly referred to as `weaker section projects' by some construction majors. With the realisation that only genuine buyers are left in the market, the focus on low-cost houses was inevitable.

G L Raheja of Raheja Constructiontold Express Newline that he planned to start work on a few such buildings within a couple of months. The projects expected to come up at Andheri, Malad and Goregaon would comprise six or seven-storeyed buildings with two-room flats measuring 500-550 square feet each. Though fancy amenities like gyms, swimming pools, saunas or marble kitchen platforms may be missing from these projects, the buyer would be assured of the main things - a sound construction and clear title. The price will be under Rs 10 lakh.

The reason behind grossly high priced flats in high rises is the extra costs incurred in laying a deep foundation, said experts. Then there is the high costs at which land is acquired. Add to this the large number of additional facilities offered in big housing complexes and immediately the rate shoots up. ``Reduce floors and amenities and you reduce cost of construction,'' said Raheja.

K V Satyamurthy, convenor of Federation of Accommodation Industry of India and himself a builder, agrees that bulkhousing is in. By that he means that builders will have to get bulk orders in advance if they want to reduce losses. ``Individual booking is unpredictable today so I am going in for building group housing for public sector units. We identify the requirement of customers and build accordingly. The margin of profits is lower but sales are 100 per cent,'' he said, and added, ``for instance we will begin a group housing scheme for banks at Panvel after monsoon with 50 flats of 500 sq feet area and another 50 of 1000 sq ft area at the rate of Rs 1,000 per square feet.''

Builders have realised that small is in. Kaushal Mulani of Gruh Finance Limited said builders have learnt that `non affordability' translates into `no demands.' ``It is 500 sq ft flats which sell most. The average cost of Rs 2.5 lakh to Rs 3 lakh for these flats in mofussil areas of Thane, Badlapur, Kalyan, Dombivli has boosted sales here and loans for Rs 1.5 lakh to Rs 2 lakh are being sought almost daily.''

Niranjan Hiranandani happily notesthat ``sales are picking up.'' His projects at Thane, Navi Mumbai and Dahisar he says are targeted at `weaker sections' of the society. The flats range from 545 sq ft to over 1,000 sq ft. But the rates are reasonable - at around Rs 1,250-1,350 per sq ft at Thane and Rs 1,750 per sq ft at Dahisar considering that they are offering added infrastructural facilities. The facilities Hiranandanis offer include elegant marble flooring, anti-termite treatment, tree-lined avenues, gardens, parks, ICSE school, club house, power sub-stations, telephone exchange and a sewage treatment plant.

Mohan Deshmukh of Deshmukh Builders and secretary of the Maharashtra Chamber of Housing Industry is also all set to flood the market with 700 flats of 550 square feet each to be priced around Rs 8.5 lakh each at Borivli and Dahisar by the year end. He already has 90 per cent bookings and three buildings have been completed. His other projects are on at Manpada, Thane where 250 flats priced at Rs 1,150-Rs 1,200 per sq ft will beready soon.

And as builders get down to the task of serving the genuine buyer, real estate observers feel revival of real-estate market is not far away. However, it will remain a buyer's market for a long time to come, they say.

It's a buyer's market

As builders wake up to the changing profile of real-estate market, some have gone a step further and are offering discounts. Evershine Builders is currently holding a property mela `Evershine Apna Ghar, 99' where it is offering discounts, instant and easy CitiBank loans and a bond worth the value of a flat to prospective customers. Says J Augustine, Evershine CEO, ``In view of low sales and customer dissatisfaction we have offered a discount on our flats in Borivli (west), Mira Road and Vasai. The rates at Borivli have been reduced from Rs 2,000 to Rs 1,790 per sq ft and from Rs 1,150 to Rs 999 per sq ft at Mira Road. Vasai has various rates like Rs 710, Rs 815 and Rs 835 per sq ft for flats ranging from 540 sq ft to 1,280 sq ft in size. The grouphas managed to sell 110 flats out of 300 available in ready possession category since the scheme was launched.''