Kozhikode: Almost a decade ago, when the centre launched the Pradhan Mantri Awas Yojana (PMAY), the credit-linked subsidy scheme (CLSS) fuelled the middle-class aspirations for a home. Led by Roy C J, who died by suicide in Bengaluru on Friday, Confident Homes seized on the opportunity and blazed a trail in housing. In the process, it also set off a stiff price war, which effectively worked to the advantage of home-buyers. 

The Union Ministry of Housing and Urban Affairs extended the CLSS component of PMAY (Urban) to middle-income groups with annual incomes between ₹12 lakh and ₹18 lakh, providing interest subsidies of 4 per cent and 3 per cent on housing loans, respectively.

Confident Group aligned its 'Smile Homes' project with the PMAY. Roy turned the idea of affordable, dignified housing into a workable reality- one that went on to reshape expectations in the sector.

Launched in 2017, the concept of specialised, affordable housing was met with widespread scepticism within the sector, with many dismissing it as impractical. But Roy firmly believed that dignity in housing should not be a luxury.

Despite doubts raised by several real estate players- who pointed to high construction costs in Kerala- the group successfully executed the projects and, in less than a decade, Confident Group delivered more than 1,000 homes to middle-income families across five Tier-II cities in Kerala.  The starting price of the two-bedroom apartments under the Smile Homes brand was ₹26.5 lakh. With buyer-friendly special schemes, the homes were fully compliant with PMAY guidelines.

In Kerala, Smile Homes were launched in Thiruvananthapuram, Kochi, Thrissur, Kozhikode, and Kottayam. The projects are Bougainville at Kakkanad, Pinewood at Edachira, Green Ville at Kariavattom, Amaxe at Kazhakkoottam, Bliss Towers 1 and 2 at Ollur, Fantasy at Kozhikode, and Silver Oak and Cygnus at Kottayam.

In Thiruvananthapuram, the units were sold out in no time, and bookings picked up steadily. It was a period after the demonetisation, and convergence with the central scheme appealed to the first-time home-buyers. 

While launching the programme, Roy had announced that the initiative would create around 3,000 new jobs in the state, and the group would invest ₹450 crore in Kerala and Karnataka for the initiative.

Designed primarily for first-time homebuyers, the projects adhered to PMAY principles and enabled eligible buyers to access interest subsidies under the CLSS. The projects offered one-bedroom and two-bedroom apartments, priced between ₹26 lakh and ₹34 lakh, depending on the location and project. Despite being budget-oriented, the developments included modern amenities such as swimming pools, gyms, 24-hour security, and party halls. 

"We provided more than 1,000 Smile Homes in the price range of ₹26 lakh to ₹33 lakh. However, after the introduction of the new GST system, it became impractical to offer homes at that cost. As a result, prices were revised. Still, demand remains strong as Smile Homes are comparatively more affordable," a senior staff member of the group told Onmanorama.

Although Confident Group was not a member of the Confederation of Real Estate Developers' Associations of India (CREDAI) Kerala unit, it maintained cordial relations with other developers in the state.

"The low-budget homes are the major attraction of Confident Group, as they address the aspirations of middle- and low-income families. The group has also faced very few customer complaints," said P H Kurien, former chairman of the Kerala Real Estate Regulatory Authority (K-RERA).

Edward George P, president of the Kochi unit of CREDAI, said the group's operations in Kerala were smooth as they earned public trust. "Smile Homes, aligned with PMAY, was a new concept that changed the housing sector scenario in the state," he said.