Finally, 2018 proved to be the year when the residential segment- mostly battered and beleaguered over the years- found its sweet spot. End users can now enjoy a price that is not only easy on the pocket, but thanks to the policy push, the housing stock in this price range is also quite high. It is interesting to note that when it comes to the end-user driven market, its the price segment falling between Rs. 20-50 lakh that is fetching handsome returns across the cities.
Going by data that was recently revealed by India’s largest marketplace for new homes Square Yards, the share of mid-market houses priced between Rs. 20 and Rs. 50 lakh has touched an all-time high of 42% in the second half of financial year 2018-19. This category has exhibited an astonishing growth rate of 21% CAGR since the first half of FY 2016-17. According to a recent report by Magicbricks.com, this trend has been ratified while also bringing to attention that affordable housing is the biggest driver for growth in the real estate sector and that urban India housing deficit has reduced by 60% , thanks to the implementation of Pradhan Mantri Awas Yojana (PMAY). The report brought to light that more than 9 lakh houses of up to Rs. 50 lakh each had been completed in just over three years and over Rs. 30 lakh had been approved. Besides, more than 60 lakh houses had been sanctioned under the PMAY (U) till October 15, 2018, out of which 33 lakh are under beneficiary-led construction (BLC).
According to Tanuj Shori, Co-Founder and CEO of Square Yards, the past two three years have ushered in great sales for the mid-market housing segment since this is where the bulk of the demand is concentrated. However, it is only recently that developers have started focusing on this category and have consequently begun to align their offerings with actual requirements of the buyers. The buyers’ preference is making increasingly shift of focus towards this segment which is evident from the share of mid-market inventory in the new launches. Besides, many developers have dedicated verticals for affordable housing projects.
Also, as far as the ongoing projects are concerned, stress is being laid on the completion of units in this price bracket. Another point worth noting is that NRIs are being drawn to this category, thanks to the availability of new as well as ready-to-move-in stock. Square Yards, enjoying virtual monopoly over several NRI markets for real estate, has reported steep demand from NRIs for the mid-market housing projects.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.