Mid segment housing will pick up, expects industry

Along with the growth of affordable and luxury housing segments, mid segment housing also will be picking up in the year 2013, predicted industry experts.

Mid segment housing is one of the fast growing housing segments, say industry experts. Nearly a half of the population falls in the mid income segment and so there will be an increase in the demand for mid segment housing.

According to the opinion, the normal 2 BHK apartments should be considered as mid income houses. The luxury housing segment contains the 3, 4 and 5 BHK apartments while 1 BHK apartments are falling under the affordable housing segment.

Industry experts point out that the most demanded housing units is 2 BHK. Moreover most of the projects are also offering suitable homes of this size. The main reason why the builders promote this sized apartments is that it enables them to offer more number of housing units.

Once the builders remain capable of offering more housing units, they can cut short the cost of construction. Land prices are shooting up and they will be able to gain better profit if only they sell out more number of housing units.

This is the reason why most of the real estate builders are concentrating on mid segment housing. As a result the segment is slowly but steadily picking up this year.

While speaking to the media persons, Ajay Mangal, director and CEO MG Housing Pvt. Ltd said that their group will be more concentrating on mid segment housing. He added that the majority of the Indian population is mid income group and their debut project will be mainly meant for this segment.

Pointing to the price variations in different cities of the NCR, he said some fo them are considered as tier I cities while others are registered as tier II cities. In his opinion Faridabad, Ghaziabad and even to some extent Greater Noida are tier II cities.

On the other side Noida and Gurgaon are considered as tier I cities. According to the standard of the cities the property prices vary. For example the prices of a single bedroom apartment will be more than the prices of a 2 BHK apartment in the tier two cities.

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