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Post-demonetisation, the number of projects in mid-priced housing and ready for occupation are seeing a significant spike.
New data from Liases Foras revealed that housing projects in the price bracket of ₹25-50 lakh have seen spike of close to 29 per cent over last year.
Pankaj Kapoor, MD, Liases Foras, said that new launches are predominantly more in the affordable and mid-priced segment.
“Increased inclination towards affordable new launches prove that developers are already proceeding in the right direction,” he added.
A PropEquity data also noted that 2016 has seen an absorption of 57,962 units in the ₹10-25 lakh bracket.
“Post-demonetisation, there has been steady increase in number of projects in the affordable segment. Both investors and consumers want to park money in smaller ticket size projects. Developers on their part too, don't want to risk their penny by putting in big size projects, and thus, sit on unsold inventory,” said Samir Jasuja, Founder, PropEqity, real estate analytics firm.
Interest subsidy A Collier study also pointed that the government has announced an interest subsidy to the tune of three-four per cent for first time affordable housing home-buyers in 2017. Collier forecasts that ready to move in properties or projects close to completion shall witness an increased demand in 2017.
About 89,000 units were launched across six major cities in India, which is about 34 per cent less than the units launched in 2015. The decrease in the number of new launches indicates the waning interest of buyers in the primary market.
Developers on their part are also increasing their pie of the affordable category. Developers like Tata, Mahindra, Purvankara and Xrbia are increasing their push in the category. Xrbia, for instance, has around eight upcoming projects.
“We have already delivered close to 15 million sq feet. We hope to add around 30 million sq feet by next two to three years,” Rahul Nahar, Founder, Xrbia, said, adding the highest demand for housing is in the Mumbai Metropolitan Region.
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