Mid income homes contributes 42% of the residential sales in 2HFY19: Report
Publish on : 2018-12-12 19:08:59
Bengaluru: Mid income housing has emerged as the preferred segment for home buyers to purchase new homes
even as the higher ticket size homes continues to see slow sales.
According to a recent study by real estate market place, Square Yards, the share of mid-market houses touched
an all-time high of 42 percent of total transactions in the second half of the current financial year 2018-19 as
compared to 38% during the same period last year. The segment contributed 32% in the H2FY17.
“There has been huge latent demand at the middle stratum of the society for housing in the country that is now
being taken care of. The quantum of requirement for mid-market housing is now being matched by adequate
supply,” said Tanuj Shori, Co- Founder and CEO, Square Yards.
The share of mid-market houses costing Rs 20-50 lakh in the overall residential sales in the country has been
progressively rising since last couple of years. This has made builders to launch more projects in the segment
and also launch dedicated brands only for mid-market segment. These include ‘Joyville’ brand by Shapoorji
Pallonji Group, ‘HomeKraft’ by ATS and ‘Provident’ by Puravankara.
“The mid income segment is increasingly becoming important constituent in the portfolio of most developers
across the country and will drive the real estate sales in future too,” said Shori,
Policy initiative at the central have benefited the segment with home buyers been incentivized through PMAY
scheme in which subsidy between Rs 2.30 lakh to Rs 2.67 lakh has been provided to wider population with family
income ranging till 18 lakh per annum. Further lowering of the Goods and Services Tax rate on mid- market
houses from 12 percent to 8 percent has benefited the home buyers too.
Source :- Economic Times