5 Lessons Realty Developers Learnt From Slowdown

3. Transformation of commercial project to residential project

With the slowdown in industrial development, real estate developers are looking forward to develop residential projects instead of commercial projects. Due to the slow growth in industrial sector, commercial property market has been facing the heat more compared to residential property market. According to the management of Godrej Properties, commercial projects in Tier-II cities have been hit negatively due to hike in construction costs and feeble demand for commercial real estate, which is why the company is targeting to sell their commercial projects as soon as possible and will also hold back their new commercial project launches.

Also developers like Sunil Mantri Realty keen to develop residential projects instead of commercial projects in their site at Parel. Sunil Mantri, CMD, Sunil Mantri Realty said that "Excess supply scenario in the commercial segment and possibility of better liquidity in a residential project has prompted us to change our decision," reports Economic Times.