Developers like Hiranandani Constructions, Kanakia Builders, Evershine group and the Rahejas have witnessed at least 25 per cent increase in demand for residential space compared with the corresponding period last year. Cashing in on the trend, developers are increasingly promoting middle income housing projects. Said Hiranandani Constructions vice-president (finance) Prakash Shah: "The government's booster dose has worked. The ceiling of tax-exepmted loan for a self-occupied residential house has been raised to Rs 75,000 from 30,000. Incentives like this have created interest in a number of customers", said Shah.

Marketing manager at Evershine VP Lobo said: "We are having a number of customer-friendly schemes to rope in buyers. This combined with reasonable rates for our residential complex may encourage the genuine buyers."

Evershine has sold about 300flats in the last four months in their projects at Borivili, Vasai and Mira Road in Mumbai suburbs. In the corresponding period last year, the construction company was able sell only 175 flats accounting for a total area of 75,000 square feet.

The rates at the Borivili project are Rs 1790 per square feet, Vasai Rs 815 and Mira road Rs 919.

Kanakia Builders' marketing head Faiyaz Rangwalla said: "Lst year, the customers expected the market to go down further and hence they preferred to wait and watch. In contrast, this year there is a realisation that the rates have bottomed out and would not go down further. We are a ISO-9000 company providing quality construction ... We have witnessed a reasonable spurt in the demand."

Kanakia has three major projects at Kandivili (east) at Thakur complex and Thakur village -- Challenger, Angan and Sanskruti. The prices of the flats range between Rs 8 lakh and Rs 14 lakh. Kanakia sold about 90 flats in the last four months. In the corresponding period last year, thecompany was able to push just 40 flats.

Mahindra Realty is also receiving encouraging response for its two projects: Mahindra Gardens at Goregoan and Mahindra Park at Ghatkopar. About 21 flats in the premium segment (Rs 15-Rs 21 lakh) have been sold.