Analysts and consultants tracking real estate say that after a decisive mandate for the government at the Centre and with key economic indicators also looking positive, there is an improvement in property buying sentiment.
Mumbai saw 14,990 sales registrations in the last three months, against 13,841 registrations recorded in the same period in 2013, data from the Director General of Registrations, Mumbai, show.
Mudassir Zaidi, national director (residential), Knight Frank India, says that though no floodgates have opened, there are customer enquiries. Enquiries have picked up, the first sign of a better market. Projects in a good location and priced below the regular pricing in the market are selling well. Pre-launches of projects are also receiving good response, he says.
Sandipan Pal, vice-president (real estate), Motilal Oswal, says there are more launches this time compared with the second half of 2013. With the change in development control regulations in Mumbai, a lot of supply had got stuck as developers were required to revisit their plans to comply with the new regulations. However, Pal says that conversion into deals still remains a challenge, as decision-making among buyers is yet to pick up. Enquiries have gone up but the 2010-11 type of conversions are not there yet. However, realty companies are saying that they definitely see a positive approach among property buyers and are hopeful that the coming months would be looking better, he says.
Zaidi of Knight Frank is of the opinion that by February 2015, it will be a far better situation in terms of residential sales numbers.
Data from Liases Foras show that in January-June 2014 there was 40 million square feet of residential supply launched in the Mumbai Metropolitan Region, which is better than the same period last year, when 31 million square feet space was launched. In fact, the 2014 numbers is a tad more than the launch figures seen between January and June of calendar year 2010 (39 million sq ft).
Taking a cue from the improved sentiments, a host of projects have and are soon to hit the Mumbai market. Vikas Oberoi, chairman and managing director, Oberoi Realty, says, Within this financial year, we at Oberoi Realty are gearing up to launch two large scale projects in Mumbai Mulund and Borivali.
Lodha has already launched a 55-storey tower at its ongoing New Cuffe Parade project in the eastern suburbs of Wadala in Mumbai. Other local developers like Omkar, Rustomjee, Marathon, etc, have also launched projects in the last one month.