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Affordable housing (units priced below ₹45 lakh) is difficult to achieve due to high land prices.
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Real estate classification should be based on house size, not price, according to industry experts.
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The mid-premium segment (₹75 lakh – ₹2 crore) is the fastest-selling and most in-demand.
In a recent podcast, Brigade Group’s Executive Director Nirupa Shankar discussed the challenges of affordable housing in India. Shankar emphasized that high land prices make it difficult to develop affordable housing units, defined as those priced below ₹45 lakh in metropolitan cities.
Shankar, along with Irfan Razack (Prestige Group) and Karan Virwani (WeWork India), highlighted the limitations of current real estate classification. Razack suggested that classification should be based on house size rather than price, which fluctuates frequently.
The discussion also revealed that the mid-premium segment (₹75 lakh – ₹2 crore) is the most in-demand and fastest-selling. Razack noted that luxury housing (above ₹3 crore) typically accounts for 15-20% of the market, while mid-segment housing (₹50 lakh – ₹1 crore) makes up around 50%.
Experts agree that the Indian real estate market needs innovative solutions to address the affordable housing challenge and meet the growing demand for mid-premium housing.
