Housing Trend: This Segment Is New Sweet Spot For Builders, Buyers Alike

    Date:

    Share post:

    Indian real estate has a new blue-eyed boy. And this blue-eyed boy seems to be going to pull the industry out of the slump.

    Due to goods and services tax (GST) benefit and a preferable price range, homes costing up to 45 lakh have emerged as the sweet spot for builders and buyers alike in the past few years. The segment which is broadly called as affordable housing segment is expected to remain the focus of attention for time to come.

    Government’s push on affordable housing has now started to show results. The policies have made it easier to buy homes, particularly for first-time buyers, through steps such as reducing the concessional GST rate from 8% to 1% on under-construction affordable homes. Additionally, reducing interest rates deduction up to 3.5 lakh, compared with 2 lakh previously, for homes priced up to 45 lakh and having a carpet area up to of 60sqmt has provided added benefits to the buyers.

    Affordable housing or homes upto Rs. 45 lakhs seemed unreasonable and impractical when the idea was first introduced, especially in tier I and II cities where property prices are very high. Many developers were not very enthusiastic about the segment owing to lower profit margin and high cost.

    However, the segment became quite a popular one among buyers, especially the first timers. Even an expensive market like the Mumbai Metropolitan Region (MMR), 30,000 one BHKs were reportedly sold in the last financial year.

    Evidently, while developers were complaining about reduced demand, the problem seemed to be the skewed supply. Until a couple of years ago, the housing segment in India usually saw the bulk supply in mid and upper income segment.

    Seeing the potential in the category, developers are now opening to the idea and are coming up with various affordable housing projects. As per Anarock Property Consultants, between January and June 2019, MMR topped the list of seven metros with the highest launches of 17,700 homes (priced below 45 lakh and 60sq. m). Pune came second and the National Capital Region (NCR) third, with 9,350 and 6,970 units launched, respectively, during the period, Live Mint reported.

    If adequate infrastructure is present, affordable housing projects are selling as hot cakes in the market. Like, Poddar Housing launched 300 residential units of 350sq. ft at around 20 lakh each in Badlapur, a suburb of Mumbai, this year and sold all of them. Here are some more developers ready to plunge in the homes up to Rs. 45 lakh:

    ·      VBHC Value Homes Ltd, New Panvel, Navi Mumbai-  20-45 lakh

    ·      Vatika India Next 2, Gurugram- 10-20 lakh

    ·      Shriram Properties Ltd, Bengaluru- 30-40 lakh

    ·      Ozone Group, Bengaluru- less than 45 lakh

    Here is more on affordable housing.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    5 Factors That Make Property Selling Easy with the Help of a Strategic Partner

    Written By - Nitin Gupta: Founder and Managing Director, Maestro Realtek Are you looking to sell your property quickly...

    Warning Issued by MahaRERA: 212 Housing Projects Launched After Jan 2023 Under Scrutiny

    The Maharashtra Real Estate Regulatory Authority (MahaRERA) has expressed concerns about more than 212 housing projects launched between...

    What’s Behind the Surge in Home Sales in Chennai?

    By Rohan Patil Chennai's homebuyers are on a buying spree, with approximately 10,300 homes sold in the city during...

    Luxury Housing Project Set to Launch in Noida Amid High Demand; 160 Flats Available in First Phase

    Noida, the neighboring city of Delhi, is gearing up for the introduction of a luxury housing unit, addressing...