High vacancy levels and rising construction costs led to a slowdown in construction activity, leading to a fall in new launches, and a further delay in project completion timeline, says the report. Liquidity issues and an increasing inventory caused developers to shift their focus from new launches to the completion of existing projects.
While the premium housing segment saw a steady interest from high net worth individuals and NRIs, end-user demand in the high-end and mid-end segments remained low. The depreciating rupee, which tumbled to a series of record lows in 2013, resulted in an increase in NRI inquiry for property in India.
Developers reduced prices across select projects and offered discounts or marketing promotions to attract buyers in micro-markets with high inventory levels.