Others like Vimal Shah, managing director, Akruti City too say that they are beginning to concentrate on this segment. The company is accumulating 2,000 acres of land near Panvel to cater the mid-level housing demands.

This sharp movement towards cheaper housing comes from the fact that there has been a sharp fall in property sales this buying season. Neelkanth's Patel admits that his sales have dropped by over 25 per cent in the past one year. And for many other builders, it could be as high as 40 per cent accoording to Pranay Vakil, chairman, Knight Frank.

Affordability, obviously is the main reason. In the last five year of property boom, prices have shot up by over 300 per cent in many areas. And in the past three years, the Reserve Bank of Indian has been seeing red over the realty prices.

As a result, it has been constantly hiking repo rates or other indicative rates to encourage banks to reduce credit off take. Just last week, RBI again increased the repo rate by 50 basis points to 8.5 percent and adjusted the cash reserve ratio by a similar margin to 8.75 percent.

Following this, banks have started increasing home loan rates. State bank of India [Get Quote] raised the interest rate by 0.5 percentage points on Thursday, followed quickly by Corporation bank [Get Quote] and Punjab National Bank [Get Quote] on Friday.

Other factors, like the high inflation rate (11.42 per cent on Friday, 27 June), has impacted household budgets to a great extent.

Given that the overall situation is rather grim, developers have been forced to focus on mid-level housing at reasonable pricing. All developers say that the demand for housing is still strong, but buyers are unwilling to buy at the current price levels.

However, these projects would be launched after Diwali because buyers consider it an auspicious time to purchase property. Builders, who are stuck with unsold inventories, are hoping that by this time they will be able to exhaust them.

Also, many of them  have been incurring high interest cost on project loans taken from financial intermediaries. The current stock is expensive as it was targeted towards the young and rich, who were riding high on a booming economy. Even flats of over a crore were finding many takers.

"Much of the past development was done with higher specifications, keeping consumer demand in mind. Now, developers will need to come up with less expensive option to cater to masses soon," Neelkanth's Patel says.

For the potential home buyer, this means that if you have been postponing the decision to buy a house, waiting for another six months could mean a better deal.