Ticket size of new residential projects in top eight cities in India has seen a drop in last few years. This is a strategy used by different real estate builders in India to recalibrate their marketing places. To reduce their inventory holding, builders and developers reduced the effective cost of their projects and restricted the number of new launches.
As per the market sentiments, the number of new residential project launch also decreased by 11% in previous year. Even after including the top real estate projects, the total housing units launched during the year were just 113,000. Out of these, 56% housing units were launched in mid segment followed by affordable housing segment with 32%. With nearly 36,300 units, the affordable housing segment witnessed an increase of nearly 22%.
The worst affected segment in residential real estate market is the high-end segment with the new launches halved to just 12,000 units. To tackle the situation, builders offering high-end luxury projects sought to rationalize ticket-sizes. Those check projects on property websites in India can see the difference in sizes of newly launched projects when compared with the old projects.
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Not just the reduced sizes, developers are also coming with discount schemes to boost sale of units in already launched projects. Further, many developers are working on the ticket values; these might come down to make the projects more affordable. Reduced bank loan rates will further help the builders to create some velocity in the sales of residential real estate projects in India.
Owing to slow sales all segments in Delhi-NCR, Mumbai and Bangalore saw a drop in ticket sizes. Even the best property sites in India are finding it difficult to attract new home buyers. With the changes made by the developers in their strategies, these sites might also get some business.
These moves by the builders can also help the government in achieving its target of Housing for All by 2022. The government is further encouraging the developers to participate in their objective by offering them different benefits. Impact of the same can already be seen with the slow uptake of residential projects. However, price and value mismatch created some problems initially the improved strategies seem to create better value for the home buyers in India.