By Anumeet Kaur Bisen, CNBC-TV18

The top end of the housing segment may be losing froth - now private equity players have zeroed on another high-growth segment, where they will pump in more than a quarter of a billion dollars. 

The sentiment in the Indian real estate market seems to be changing. High-end residential projects have taken a backseat as private equity funds turn, instead, to the affordable housing segment. Private Equity funds may be pumping in at least 10 to 15 percent of their total investments in affordable housing over the next year.

Shobhit Agarwal, Joint MD, Jones Lang LaSalle Meghraj said, “"We feel, in the affordable housing sector, the growth rate may be as high as 50%. It is because it's going to start from a very low base. The year-on-year growth on that quantum will be probably 50%.”

Red Fort Capital will invest USD 100 million dollars over the next two years in affordable housing projects in cities like Hyderabad, the National Capital Region, Mumbai and Pune.

Fire Capital has committed USD 150 million to develop seven integrated townships across the country. Hong-Kong based Arch Capital has partnered with Mahindra Lifespace Developers for a similar project in Chennai.

And Warburg Pincus, a USD 15 billion global fund, has tied up with Jaipur-based Unique Builders  for such projects in North and Western India. The PE players say there is a lack of supply of affordable housing in India.

Kuldip Chawlla, Director, Red Fort Capital says, "We are increasingly seeing, over the last nine months in particular, a large number of funds, both domestic and international, are actually coming to play in this segment, recognizing the large demand-supply gap, which is reflective of the lack of supply, and high demand in this sector".

Sources say US-based Private Equity fund, Berggruen Holdings, is also looking to crack a deal in this segment.

Broadly, apartments in affordable housing segment range between Rs 1,700 per sq ft to Rs 2,700 per sq ft. Of course, it varies with the project's location, and experts are pegging the returns to as high as 20 percent on investments.