From The Economic Times · PTI · · 2m
Ashiana Housing bets Rs 1,000 crore on land grab
The senior living specialist plans major expansion across India's top markets with aggressive land acquisition.
In brief
The senior living specialist plans major expansion across India's top markets with aggressive land acquisition. Ashiana Housing is committing Rs 1,000 crore this fiscal year to buy land for housing projects, betting on strong demand despite global uncertainty. Originally reported by The Economic Times.
Ashiana invests Rs 1,000 crore for land
Ashiana Housing will spend Rs 1,000 crore this fiscal year acquiring land for new housing projects across major Indian markets. The company has sufficient cash reserves to fund the expansion.
“We will be investing around Rs 1,000 crore this fiscal on land acquisition”
Expansion targets four major regions
The company is expanding across Delhi-NCR, Rajasthan, Maharashtra and Tamil Nadu to tap strong housing demand. Senior living and regular group housing projects are both part of the strategy.
Pune senior living project breaks records
In the April-June quarter, Ashiana acquired 28.55 acres in Pune for its largest-ever senior living project. The development will have 20 lakh square feet of saleable area and Rs 1,800 crore revenue potential.
Sales bookings expected to hold steady
Ashiana expects sales bookings for fiscal 2026-2027 to match last year's Rs 2,400 crore. First quarter bookings were Rs 358 crore, down from Rs 431 crore year-on-year.
RERA brought transparency but delays persist
The Real Estate Regulation and Development Act has improved trust in the market, but building approvals and RERA registrations still face significant delays. These inefficiencies drive up housing costs.
“The most important thing that has happened to the real estate market in the last 7-8 years has been RERA”
GST input credits needed for affordability
Real estate lacks GST input tax credits available to other industries, significantly raising construction costs. Rationalizing taxes and reducing regulatory delays are key to expanding affordable housing supply.
“We do not have input credits on GST in real estate. It is affecting affordability significantly”
Skilled labor shortage drives up costs
India faces a shortage of quality contractors and skilled workers, making labor increasingly expensive. This workforce gap directly increases construction costs and housing prices.
Cheaper capital key to affordability
Lower-cost capital is essential for expanding housing supply and improving affordability. Capital will flow to markets with predictable laws, ease of doing business, and regulatory certainty.
“Capital will fly to those places where there is not just opportunity, but there is also certainty”
In short
Ashiana Housing is committing Rs 1,000 crore this fiscal year to buy land for housing projects, betting on strong demand despite global uncertainty.
