Declining sales, high interest rates, paucity of funds and global economic slowdown have badly impacted the real estate sector which is witnessing not only sudden slump in demand but also is at the receiving end in the stock market.
Freebies in the shape of luxury sedans, offers of foreign trips, 15%-20% discount or deferred payments have failed to attract buyers.
Fears of recession and an overall depressing sentiment have forced the real estate players to re-draw their strategies and curtail their expansion plans in the high-end and premium segment.
The focus has suddenly now shifted to providing budget housing in order to cash in on volumes and target Tier-II and Tier-III cities.
Parsvnath Developers Chairman Pradeep Jain said the Government should help the developers to launch a special scheme to promote affordable housing as costly land was a big hurdle.
Favouring Government’s intervention to give a fillip to affordable housing, Omaxe Chairman and Managing Director Rohtas Goel said: “There is an artificial scarcity of land. No cushion is left in the hands of developers to reduce the prices.” Omaxe has already put in place National Affordable Housing and Infrastructure Limited for developing affordable housing to a bigger section of the society.