Mid and Affordable Real Estate Set to Gain Traction in the Market
The residential real estate sector is in its fifth year of an upcycle, with demand exceeding supply. While luxury housing initially drove growth, mid-segment and affordable housing are expected to contribute more significantly in the coming years.
Real Estate GrowthLuxury HousingAffordable Housing MarketMidsegment Real EstateResidential Sector UpcycleReal Estate NewsJun 05, 2025
While luxury housing has been the primary driver of growth in recent years, the future looks promising for mid-segment and affordable real estate. Developers can anticipate a 10-15% booking growth in the coming years, supported by favorable pricing trends.
Kunal Tayal emphasizes that the current upcycle is marked by a healthy demand-supply balance, with minimal inventory buildup and moderate investor participation. Pricing has increased, but it has not reached a level that makes housing unaffordable. This bodes well for the future, as it suggests sustainable growth potential.
The luxury segment, which has been a significant contributor to the sector's growth, is expected to continue performing well. However, the balance is likely to shift, with mid-segment and affordable housing playing a more prominent role. This shift is driven by the increasing demand for affordable and mid-range properties, which aligns with the broader economic trends and consumer preferences.
Developers are optimistic about the future, despite the challenges faced in the past year. Larger companies are consolidating the market, and there is a growing focus on quality and customer satisfaction. This trend is expected to benefit the entire residential real estate sector, making it more resilient and adaptable to changing market conditions.
In summary, the residential real estate sector is well-positioned for continued growth, with mid-segment and affordable housing expected to play a crucial role in driving this momentum. Developers can look forward to a balanced and sustainable growth trajectory, supported by favorable market conditions and increasing demand for a variety of housing options.
For those interested in the real estate market, this shift towards a more balanced growth pattern is a positive sign. It indicates a more stable and sustainable future for the sector, with opportunities for both developers and homebuyers.
Frequently Asked Questions
What is the current state of the residential real estate sector?
The residential real estate sector is in its fifth year of an upcycle, characterized by demand consistently exceeding supply. This trend is expected to continue, with a more balanced contribution from mid-segment and affordable housing segments.
What are the key drivers of growth in the real estate sector?
The key drivers of growth in the real estate sector include a healthy demand-supply balance, minimal inventory buildup, and moderate investor participation. Favorable pricing trends and increasing demand for affordable and mid-range properties are also significant factors.
How is the luxury housing segment expected to perform in the future?
The luxury housing segment is expected to continue performing well, but the growth is likely to be more balanced. The mid-segment and affordable housing segments are expected to play a more prominent role in the overall growth of the sector.
What are the expectations for booking growth in the coming years?
Developers can anticipate a 10-15% booking growth in the coming years, supported by favorable pricing trends and increasing demand for a variety of housing options.
What role do larger companies play in the real estate market?
Larger companies are consolidating the market and focusing on quality and customer satisfaction. This trend is expected to benefit the entire residential real estate sector, making it more resilient and adaptable to changing market conditions.
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