Realtors resort to price protection

In the prevailing scenario in the country’s real estate sector when fewer home buyers turning to the market to buy residential apartments due to demonetization, developers have launched the price protection strategy assuring buyers of adjustment of compensation if prices further go down. According to developers, the assurances are aimed at prompting clients who were preparing to buy a house but are now waiting for a correction in property prices. As a matter of fact, demonetization and worries over further clampdown on black money have led to a 40% drop in enquiries and sales of real estate across key markets of Mumbai, Delhi, Bengaluru, and Pune.

Similarly, deals in the secondary market have virtually come to a standstill, with buyers and sellers waiting for clarity, while in the primary market, developers are looking to prompt fence-sitting homebuyers. Commenting on the development, director, Karma Realtors, a property brokerage in Mumbai, Prakkash G Rohiira said that most homebuyers are in a wait-and-watch mode because they expect prices to come down and this has created confusion. Realty developers are trying to provide stimulus to the market with price-guarantee schemes so that the market gains momentum. Enquiries for projects offering price guarantee schemes have improved over the last few days. In Mumbai, various developers, such as Lodha Group, Runwal Group, and Oyster Living, among others are offering these schemes.