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.