The new residential launches in the top eight cities have witnessed a decline of 14% year-on-year on their ticket size. This came as a repercussion to many developers carefully modifying their marketing strategies. These new strategies involved a decrease in the cost of their properties and restraining the new residential launches to curb their stock holding.
According to the sources, the new housing units saw a decline in the year by 11% which makes around 113000 units. 56% of the total unit launches was covered by mid housing segments and value housing segments accounted for 32%. If we consider on the year-to-year basis, there was an increase of about 22% in the value housing segment.
However, the segment highly affected was the high-end one. High-end segment witnessed the launches coming to half, that is, just 12000 units during the whole year.
As a result, most of the developers are seeking to control the ticket sizes, specifically in the most-affected luxury and high-end segments.
The government has shown great amount of flexibility in its efforts reach the goal of Housing for All by 2022. It is also making efforts for developers to be at an advantage in this vision, so that they show maximum participation. After demonetization, realty markets had witnessed a slump, which made homebuyers lose all the trust they had in the market.
And therefore, developers are working on their strategies to attract homebuyers so that they can develop trust in the real estate market again.