Although the segment of affordable housing in thriving in the middle segment of the luxury and luxury through a difficult period Ahmedabad.

According to industry experts, an oversupply has led to clogging of luxury apartments in the city.

“The demand for affordable housing is increasing. It can be a little short term impact due to a hike in interest rates demand for affordable units is more or less has steadily increased. It ‘, however, luxury and mid- luxury apartments or houses, which are the players in recent months, “said Hitesh Shah, President and Chief Executive Officer -residential real estate, space management, a city-based real estate consulting firm.

While the demand for affordable housing is 85 percent, mid-luxury and luxury segment attracts only 15 and five percent, respectively, in contrast to previous years. This. Despite the fact that interest rates have been increasing the demand for affordable housing, and lately According to Jones Lang LaSalle in India (JLL), another real estate consulting firm, fell later in January of this year.

“Until January, the market was optimistic that led many developers jump on the luxury train. This resulted in a surplus of apartments in a period of time,” says Nirav Kothary, Regional Director (Gujarat) India JLL.

Apart from oversupply, is also the step of buying for investment to consumption has slowed growth in the luxury segment. “Recently, investors have been resigning from the luxury segment, which also affected the growth,” said Shah.

The impact on the segment comes in the wake of the likes of Ajmera Group and JP Infrastructure announces housing projects in the mid-luxury and luxury segments in recent times in Ahmedabad.

But industry players believe the trend is short.

“Deny the luxury segment can not be a cause for concern, since the majority of the housing demand is for affordable housing,” said Vijay Shah, a developer based city, adding that while affordable and mid-luxury segment in edge of RS 35 lakh and Rs 70 -70 lakh to Rs one crore, the luxury segment is attached to about Rs 1.25 crore.