Demonetisation has hit real estate sector hard, builders are willing to compensate to attract buyers

The real estate sector, which was already not facing any momentum, has been hit hard due to demonetisation also.

Post demonetisation, home buyers are waiting for correction in property prices, which is why developers have stopped getting queries too.

In a bid to revive the property demand, the developers have started assuring home buyers of compensation, if prices go down.

Apart from this, deals in the secondary market have also come down.

Prakkash G Rohiira, director, Karma Realtors, a property brokerage operating in Mumbai, told ET most homebuyers are in a wait-and-watch mode because they expect prices to come down. "This expectation is drawn out of confusion, and not out of clarity. Realty developers are trying o provide stimulus to the market with price-guarantee schemes so that he market gains momentum. Enquiries for projects offering price guarantee schemes have improved over the last few days," Rohiira told ET.

"With reduction in interest rates of anywhere between 1% and 2%, EMIs will go down by 10-15%, which will be a massive boost to all consumers. We are confident prices will not go down. On the contrary, demand for good quality development by Grade A developers will increase. To give customers the confidence that we actually believe in this, we are happy to provide a guarantee that there will be no such reduction in prices, and if in the next three months there is any, we will pass on the benefit to them," Abhishek Lodha, MD, Lodha Group, told ET.