With real estate industry moving towards recovery, mid-segment housing is witnessing a boom again. So much so, that real estate developers focused on high-end projects have lined up slew of projects to tap the growing mid-income housing projects.
Bangalore-based property developer Prestige had entered into mass housing segment. Largely known as premium property developer offering houses upward of Rs 40 lakh, the company entered housing starting from Rs 20 lakh onward to cater to the growing demand from mid-income segment.
“There is latent demand in this segment and we had already sold out some 500 units,” said Irfan Razack, chairman and managing director, Prestige Estate Projects, said. The company, for the first time, plans to launch one-BHK apartment along with two and three-BHK with apartments ranging from 664 sq ft. to 2,000 sq ft each. Spread over some 38 acre, the first project in Bangalore will offer 2,321 units and will entail a total outlay of Rs 650 crore. Subsequently, it plans to build one in Chennai. The firm plans to launch two more townships in South by the end of this year for the mid-income segment.
Another Bangalore-based real estate developer, Mantri Developers, entered into this segment focusing on middle class clients in prime locations. Largely known as luxury developer offering houses upward of Rs 70 lakh, Mantri has entered housing starting from Rs 25 lakh onward.
Mantri, which had earlier planned three residential townships across Chennai, Bangalore and Hyderabad consisting of 30,000 units, has now scraped the plan to de-risk itself from the fast changing dynamics of the real estate business. It will instead launch mixed-use housing projects comprising of residential, hospitality, retails and commercial properties.
Property experts say that a close look at the overall property sales across India in the last nine months reveals that residential homes in the price bracket of Rs 25 – 40 lakh accounted for more than 85% of property sales.
Ambar Maheshwari, managing director, corporate finance Jones Lang LaSalle, said the Indian economy started picking up and most of the developers are now looking to focus on this segment. “Demand has resumed in mid segment housing category and this market appears to be doing well,” added Maheshwari. A healthy margin of over 30% is also one of the reasons why developers are looking at this category. Delhi-based property developer Parsvnath Developers is also looking to tap this segment and sell flats priced between Rs 20-50 lakh. It is firming up strategy for the same.
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