Developers Banking on Affordable Premium Segments for Coming Months
Major real estate developers are banking on their affordable premium segments for the coming months with slowing of luxury housing property sales.
As they are still bearing the brunt of last November’s demonetisation, plus the impact of the new Real Estate Regulatory Act (RERA) and the Goods and Services Tax (GST). As a result of these, say developers, the luxury residential market is going through consolidation and slowdown. Once that phase is over, they hope, wealthy individuals would again start spending on luxury properties.
Anarock Property Consultants says in the fourth quarter of 2016, a total of 3,864 luxury properties were launched. Plunging in the first quarter of 2017 to 599.
There now seems some return of stability to the market, say major players, optimistic on the growth of the affordable and premium segment properties, while seeing consolidation in the luxury segment. With the initial tremors of demonetisation settling down and the measures by the government in terms of interest rate cuts and increased focus on affordable housing, the overall outlook for the real estate sector is very positive. The affordable and premium segments have shown signs of improvement. It has witnessed a growth of over 30% as compared to the preceding quarter across all our projects in the country.
Experts says this is the right time for consumers to buy their dream homes, as every developer is offering good deals. This opportunity could vanish, once the economy starts showing signs of recovery.
Some says that the luxury market segment saw subdued demand and low sales post demonetisation but should gain renewed momentum with the coming festive season. The rapid increase in number of high net worth individuals and improved buyer confidence post RERA will further push the long-term demand for luxury housing.
Source Link- http://www.business-standard.com/article/companies/builders-bet-on-affordable-homes-as-luxury-sales-dip-117091000553_1.html