In a recent news it is said that Tata's are extending their cheap housing concept to the global market also, with the recent success of their cheap housing project in Mumbai, they are now ready to expand it to the other cities in India and later on they are expanding it on a global scale. Will this Cheap housing work in the Global market?
Cost is always a dominant factor for a sizable population in World.Very few people in the World giveweigtage value over price. Housing is a basic need & cheap housing is always to be a hit at any age at any stage & at any place.
I don't think so, In India people are price conscious and something like this will work out fine, but in global arena, people go for luxury more and something which is not basic for that matter, the whole affordable and cheap does wonders in India whether it may be cheap housing or the cheap & affordable car like Nano, but in world market I have doubts over this... In global market it all depends on the price factor for raw materials there, In India where Tata have their own steel, and have many things combined with cheap labour that is there in the country has done good for them but in world market it is a different ball game altogether, and I think that this cheap housing will not do good in the Global market. Might do well in developing countries but not in developed countries...
That may be true for Western countries or American counteries. In Aferica there are many counteries which are less developed and poor population exist and price is of great conceren. I think UN habitat agency of UNO is also working for providing housing or rather shelter to the poor. In view of above cost is important and there is a dire need of providing affordable houses to the masses in developing and other poor nations.
Tata's are a reliable group and also their products targeting any segment meets the quality requirements. So we can look forward to such initiatives from the Tata's as the group is basically common man centric. However to make such projects commercially viable, Tata's focus on huge volumes. So such projects would take long time before it can reach the end user.
If the Tata's can make sure these kind of projects are time bound, it will serve the purpose.
This nano housing by tatas can even click in foriegn countries because of the social circumastances like nuclear families, increasing number of single adults preferring independent tenements/flats smaller in size with more comunity facilities.
The rate of success even increases with targeting of lowermiddle class families which are prevalent in any part of the world.The Tatas will be successful in their venture.
TATA ventures never gets flop, their management capability and decision making capacity is premier to that matter. Charity shall begin at home, they started their low cost housing projects in Mumbai and intent to extent their activities to the other parts of india. To my belief they will succeed, low cost will be prefered by all, it dosent mean that low statndered but it will be cheep and bast policy. In the recent past they have spread their wings globally, they will defenitly succeed in exploiting indian cheep labour apart from their in hose building material. If they are able to use these two thier housing projects definitly will be a copetitive one in the global market.
Innovation always works if the commercial feasibilty and viability are factored into. Cheap Housing doesnt necessarily mean lack of facilities or cheap quality. It primarily means that giving affordable living modules for people who otherwise dont need those costly fitments into their homes coming from the builder only.
I dont think TATA's can make a success story without setting an example in India first.Cheaphousing as a concept does not make sense...it depends what area,what location,what finish & what facility you get for the price you pay.99% of the claims by various developers these days is mere marketing trick..they are giving less of area( by super carpet area stories),remote location,possession always remains a big ? with most developers & inferior finish.So CHEAP HOUSING is just an illusion,you get the worth what you pay for in plain words,rest is a way to suit yourself .
I do support your argument that in india people are cost conscious and can live in simple and clean environment but in global aspect everybody shall need luxury where they can afford so they will not see the cost aspect so in golbal senario it will not work
As long as the raw materials for construction cannot be substituted, the success of cheap housing project would remain in apprehension. The benefits are arrived from volume and this volume cannot be built fast as it requires certain quality parameters to be met at each phase. How can a project be sure of being within a fixed estimate, when the market is witnessing unprecedented price rises for raw materials day by day? In such a situation what exactly happens is first movers stand to benefit and the effect of escalation is transferred to the late comers! People have started becoming quality conscious especially when it relates to a product that has to sustain strong for years. Only a very little % is still price conscious, which a massive development cannot depend on. This is about cheap housing. Similarly, nano housing develops accommodation in small sizes which is unlikely to be globally preferred! It may sell in a few parts of the world.
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