Indian developers set sights on lower end of the market

Indian developers see opportunity at the bottom of the property ladder as demand for pricier homes wanes.

Mahindra Lifespace Developers Ltd, Tata Housing Development Company Ltd and Raheja Developers Ltd are among companies unveiling projects where apartments cost less than 2 million rupees ($32,000), as elevated borrowing costs weigh on purchases of more expensive properties.

"Developers are increasingly focusing on affordable housing projects as demand and sales remain strong there," Anshuman Magazine, chairman at CBRE South Asia Ltd, said on Wednesday. "High price points and interest rates led to a fall in residential property sales in premium and mid-market segments last year."