Mumbai property sales on recovery path
Although 2012 ended flat compared with 2011 with a total of 58,202 properties registered, December has recorded the highest sales registration numbers of 2012, data sourced from Director General of Registrations, Mumbai showed.
December figures are 21% higher against December 2011, and on month-on-month basis too, the December numbers are a whopping 42% up at 6,193.
Real estate consultants say that customers who held on to their purchase decisions in 2011 came out in 2012 to finally buy property, which led to an increase in demand. At the same time, lack of liquidity in the system led to some steady pricing. Suburban markets outperformed prime location in 2012, according to a December 2012 report by Jones Lang LaSalle India.
According to India Ratings & Research, a Fitch Group company, residential demand showed signs of stability in 2012, with year-on-year growth in home loans from banks showing an uptrend from May 2012.
“The trailing 12-month disbursements actually declined during the first few months of 2012 and started picking up only in May 2012. Its steady increase since then indicates a return of growth in the residential housing sector,” says January 2013 report. Trailing disbursements 12-month disbursements are monthly disbursements calculated by taking the difference between month-end exposures and adding 1/120 of previous month’s outstanding to account for repayments.
Mumbai developers have also taken a sigh of relief as they called it “good news”. Lalit Kumar Jain, national president, CREDAI (Confedration of Real Estate Developers Associations of India) says, “This shows that as approvals have started coming in, there is supply of residential stock in the market, which has led to sales. We are hopeful that now this trend will continue provided approvals keep coming in, which are still slow given the fact that environment clearances still take upto two years.”
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