Mid-Segment Housing: Propelling The Real Estate Sector Of India

by Dynamix Group Writer

One of the key noticeable trends after the emergence of COVID-19 is the residential sector that is all set to embark on a different growth trajectory with ‘home ownership’ gaining significant preference among the new-age millennials.

Affordable & Mid-segment properties are the top choice of a lot of prospective property buyers. And, a crisis like Covid-19 pandemic has further strengthened its base. Collectively, 73% of home seekers prefer to buy properties priced within Rs 90 lakh budget. Naturally so, multiple government incentives for affordable housing have upped the game for this budget category in the last few years. Post coronavirus pandemic, the real estate developers should focus on a mix of affordable and mid-income segment housing to ensure sustained cash flows, as these are the categories that would bounce back first.

 

The expanding population in cities as well as infrastructure upgrades towards the peripheral areas have also encouraged growing interest in the mid-segment housing options.

 

One of the prime factors behind the current slowdown in real estate was the exponential rise in housing prices over the 2000s and 2010s, as Real Estate Developers and investors rushed to cash in on a growing market.

 

As prices reached sky-high levels though, demand crashed across the top cities, including Mumbai, which is one of the most expensive housing markets in the country. As a result, builders across India who had earlier focused heavily on the more profitable high-end, premium and luxury segments are tilting more towards affordable and mid-segment housing.

 

In Mumbai, realty firms have been targeting the mid-segment in particular and launching smaller, more affordable homes to cater to buyers on a budget. Most of the sales are now happening in the low- and mid-segment category, for example, 2 bhk flats in Goregaon would be in high demand.

 

India with a population of 1.2 billion individuals, an unprecedented rate of urbanization & an expansive middle class, represents a massive amount of aggregate housing demand all around the nation. The growth in the residential sector will be underpinned by middle-income & affordable housing demand emanating from the end-users.

 

A sizable part of such new launches is concentrated around upcoming urban corridors, suburban areas, industrial parks & IT-zones. In Bangalore, upcoming micro-markets such as Hosur Road, Kanakapura Road, Hebbal, Yeshwantpura, etc. are witnessing new launches from major Grade-A developers. In Gurgaon, Dwarka Expressway, Sohna, New Gurgaon, etc. are garnering developer interest. In Mumbai, new markets such as Thane & Beyond are getting maximum traction as properties like 2 bhk flat in Ghodbunder Road, Thane have become quite affordable.

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on May 15th 2020 01:05. Viewed 330 times.

Comments