Bridging the Housing Divide: India’s mid-segment homes take center stage

financialexpress.com:

In the fast-growing housing market of India, where affordable residences for the economically underprivileged and opulent homes for the affluent take centre stage, attention is increasingly drawn to a crucial yet sometimes overlooked segment—the mid-segment homes.

This segment, catering to the housing needs of the burgeoning middle and upper-middle class, plays a pivotal role in aligning aspirations with the challenges posed by swift urbanization.

Recent data underlines the growing significance of mid-segment homes, particularly in Tier-1 cities. This segment, serving the middle and upper-middle class, is witnessing heightened demand, signalling a shift in urban dwellers’ housing preferences. Cities like Mumbai and Delhi NCR have experienced a surge in the mid-segment housing, surpassing sales in the affordable housing segment.

The mid-segment housing market in India, thus, holds promising mid-to-long-term growth prospects, supported by various factors and current data trends, according to industry experts.

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Anuj Puri, Chairman, ANAROCK Group, says, “India’s urbanization and population growth continue to drive demand for housing, particularly in the mid-segment category, as more people seek affordable yet quality homes in urban areas. The mid-range segment (homes priced between Rs 40 lakh and Rs 80 lakh) continued to dominate in Q3 2023 with a 28% share of the total new supply. This indicates the enduring strength of the segment, even as demand and supply of luxury housing also increases.”

Mohit Malhotra, Founder and CEO of NeoLiv, says, “The mid-housing segment serves as the largest and fastest-growing category as young and aspirational