After hitting a five-year low level in November, Mumbai's property sales registration numbers rebounded in December 2013, showing a renewed interest in the financial capital's property market from buyers.
The December 2013 numbers were the highest reported compared with the same period for the last three years. Registration numbers surged a sharp 80% on a month-on-month basis to 6,916 in December, and 11.7% year-on-year, data sourced from Director General of Registrations, Mumbai show. In November 2013, the numbers plunged to 3,842, data showed. Traditionally, the December registration numbers are higher, as customers rush to register their properties before the ready reckoner (RR) rates are revised on January 1 every year. However, in 2013, aggressive pricing by realty developers, and more new launches aided higher sales, say industry consultants.
“December registration numbers are a reflection of good sales momentum seen in Mumbai property market during September to November. Many new projects were launched at aggressive prices, which were received well by customers," says Mudassir Zaidi, national director (residential), Knight Frank India.
In Mumbai, home buyers are required to register their properties on payment of 20% of the transaction value. It usually takes customers 2-3 months to make the payment, so deals transacted in the September-November period reflects only in the registration numbers of December, say consultants.
The prices in newly launched projects have been 25%-30% lower than the ready available stock in the market, says Zaidi. “Generally, pricing in new projects come at around 20% discount to the projects which have ready possession flats. However, that discounting factor has gone up to about 25%-30% depending on the project and location."
According to sources, Mumbai-based Lodha Developers offered a pricing of R22,000-23,000 per square feet for its Park project in Lower Parel, located in central Mumbai, at a time when some projects with ready-for-possession flats commanded upwards of R30,000 per sq ft. For its other project called New Cuffe Parade in Wadala, the company was offering prices at around R15,000 per sq ft, while ready apartments were priced at around R20,000 per sq ft.
In Andheri too, some newly launched projects were available for between R17,000