Affordable housing fastest growing segment in A'bad

Despite attractive schemes being launched by mid and premium segment residential and plotting projects, the Ahmedabad real estate market is witnessing a consistent growth only in the affordable housing segment in the sub-Rs 10 lakh and sub-Rs 5 lakh category, say developers and experts alike.

According to experts, over 60 per cent of the close to 10,000 residential units being added up in next few months fall in the affordable housing segment, which is the sub-Rs 10 lakh and sub-Rs 15 lakh category. "There are simultaneous mid-premium and premium residential projects as well as plotting projects being launched in Ahmedabad. But the rate of conversion has been the highest among affordable housing, especially in the sub-Rs 10 lakh and sub-Rs 15 lakh category. It has been growing consistently by over 15 per cent, as against other segments of residential property market," said Neeraj Tomar, head-Ahmedabad operations, Jones Lang LaSalle India (JLL).

According to Sanjay Shah, CMD, DBS Affordable Home Strategy Ltd., the demand had been latent since 5-6 years but the growth in supply has spurred the demand further lately. "The affordable segment had a very underlining demand since 5-6 years but was not being tapped. It is only lately that developers have begun tapping it," said Shah.

Developers present in the affordable category have also been cashing in on the growing demand by devising various schemes, said Pawan Sarda, Head -" Marketing, Smart Value Homes Ltd - a 100 per cent Subsidiary of Tata Housing Development Company Ltd which recently launched the New Haven Concept in Ahmedabad in association with Arvind Real Estate.

What's more, the growing affordable housing market has also led people in the middle income group (MIG) who were aspiring for a Rs 20-25 lakh residential property to go for a sub-Rs 10 lakh and sub-Rs 15 lakh property. "Add to that, the number of firms providing housing finance in affordable category has also increased from 4 last year to 16 this year," added Vishnu Swaminathan, director at Ashoka Housing For All.

Meanwhile, both developers and buyers are looking at rates of Rs 14,000-15,000 per sq yard for a 50-60 sq yard residential property in the affordable housing segment.