By Rohit Sharma
The share of mid-market houses costing Rs 20-50 lakh in the overall residential sales in the country has been progressively rising, touching an all-time high of 42 per cent of total transactions in the second half of the current financial year 2018-19, according to data released by Square Yards.
The mid-market houses are increasingly becoming popular among the buyers with the share of this segment in the total residential sales going up every six months in the last few years.
The mid-market housing category accounted for 29 per cent of overall residential sales in the first half of fiscal 2016-17, going up to 32 per cent in the second half of the same financial year. It further went up to 36 per cent in the April-September period of 2017-18, steadily rising to 38.4 per cent in the rest of the same fiscal. The category is continuing is an onward march and touched 42.7 per cent mark of the overall residential sales in the first half of the current fiscal. Thus, this segment is growing at a staggering rate of 21 % CAGR.
“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 a requirement for mid-market housing is now being matched by adequate supply. This segment is increasingly becoming an important constituent in the portfolio of most developers across the country and will drive the real estate sales in future too,” said Tanuj Shori, Co-Founder and CEO, SquareYards.
Buyers have also been incentivized through PMAY scheme in which subsidy between 2.30 lakh to 2.67 lakh has been provided to a wider population with family income ranging till 18 lakh per annum. PMAY scheme has been designed in such a way that benefit can be extended to a wider range of apartment size based on annual family income.
The segment got a shot in the arm in January this year when the Goods and Services Tax rate on mid-market houses was lowered from 12 per cent to 8 per cent. Developers have been able to pass on the benefit of lower taxes in the form of lower prices of the apartments which are making the deal sweeter for the end consumers.