Mumbai, Apr 7 (IANS): In a significant initiative in the country's realty sector, a plan is on the anvil to construct 500,000 affordable houses at an estimated investment of over Rs.15,000 crore in the next five years in Mumbai and surroundings.

The lead in this project has been taken by the Maharashtra Chamber of Housing Industry (MCHI) which will partner with the state government and act as a "facilitator" for the mega project, said its president Pravin Doshi here Tuesday.

Besides Mumbai, the new homes are expected to come up in Thane in north and Raigad in south with emphasis on people in the annual income bracket of Rs.3-5 lakh, a critical segment needing nearly 11 lakh units in Mumbai alone, Doshi told mediapersons this afternoon.

Doshi said that an investment of Rs.15,000 crore will be required to realise this dream and the houses would be measuring 160 sq feet to 600 sq feet.

"More than 150 builders have come out in support of this project targeting the lower and middle-income groups and to provide them with quality houses at affordable rates," Doshi said.

As the first step, the MCHI is hosting a "Homes For All" convention here April 28 to hammer out the details of the proposal.

Later, the MCHI will sign a memorandum of understanding with the Maharashtra government to get the plans moving, Doshi said.

"Over the years, we have prospered and now time has come to repay to society. We are very serious about the project and have already started conducting different surveys for the purpose," the MCHI president said.

Citing a report by Cushman & Wakefield, Doshi said the demand for affordable housing is expected to go up by around 400,000 units each year in India.

"Mumbai has an immediate requirement of around 14 lakh homes, of which nearly 80 percent are in the lowest segment having an income of Rs.3-5 lakhs per annum," he explained.

The unmet demand in Mumbai and surroundings like Thane, Raigad and adjoining areas is mainly due to the steep hike in land, labour and construction costs.

Residential housing can be made affordable when the government releases land, increases floor space index, reduces taxes, ensures single-window clearance for construction projects and makes available micro-finance, Doshi said.

The MCHI was formed in 1982 and today has over 400 top players in the realty industry as its members, who together account for over 80 percent of the residential accommodation in Mumbai and surroundings.