Mumbai property registrations experience sudden growth
Considered as one of the hottest real estate markets of the country, Mumbai has witnessed a steady growth in property registrations since 2013, despite slump in house sales. The growth in property registrations marks the onset of the real estate market of the city, which has been sluggish for quite sometime now.
According to JLL reports, property sales registrations in Mumbai has witnessed a sudden growth of 21%, for residential and commercial space, in the first quarter of the year. With the highest number of registrations in the last 31 months, March has seen a jump of 43%. An increase in such registrations has been triggered after the festive seasons, while the exceptional growth in the month of March is due to it being a fiscal year. The number of registrations rose to 24% and 15% in the month of April and May respectively. Market reports confirm that around 12000 registrations were recorded in April 2013.
According to market reports, lease registrations were also very strong and recorded at 15% year-on-year and 23% persistent growth. For suburban locations of Mumbai, the number of lease registrations has been very good, both in terms of YoY and sequential growth. The last two monetary policies brought in the monetary ease at 25 bps repo rate that can enhance the buying behavior in the sector.
According to reports by brokerage firms, registration of properties(such as homes and offices) is generally a sluggish process and is generally done after a few months from purchase. Property analysts also state that sales registrations for the initial five months of 2013 have remained strong because of the previous year’s low base. In the last few months, key real estate developers of the city (such as Omkar, Lodha Group and L&T) have initiated various housing projects in central Mumbai. Growth in such registrations has been witnessed in the city mainly and not in the suburbs.
Mumbai property consultants state that with the arrival of the monsoon, sales might be affected adversely. In the Mumbai Metropolitan Region (including Mumbai), Navi Mumbai and Thane the absorption of homes have reduced to 21%, whereas Delhi-NCR witnessed a sharp rise of 2%. Numerous launches from the developers in the unlisted and listed space in Mumbai are likely to happen. However, they have been delayed significantly because of clearance and approval issues.
Market analysts also state that the second half of the current year 2013 can prove to be beneficial for property launches and may coincide with festive seasons. By the end of the CY13, real estate market of Mumbai will rise a few notches up and will experience a boom that was much awaited.
