The sales registrations of property in Mumbai between January and July, 2011 have fallen by almost a fourth over the comparable period of 2010. Total registrations are lower by 24% down to 35,681 against 46,753 registrations made last year. Registrations in July came off by 28% year-on-year. However, July has been a relatively better month than June with registrations up 7% at 5,047 from 4,721.

Transactions, nonetheless, remained lesser than they were in March, which saw the highest registrations of 5,852 in the last six months.

?Demand is clearly coming off because asset prices remain high and buyers believe that prices could come down. The slight uptick in the July numbers compared to June is good news but that could be because developers are now offering discounts. Moreover, disposable incomes remain strong allowing some buyers to purchase properties,? said Akshay Kulkarni, ED (residential services), Cushman and Wakefield.

According to Pankaj Kapoor, founder, Liases Foras, the registration data comprises both new and second-hand sales of property. ?The increase of 7% sequentially that we see in July numbers could be because properties have been sold at a corrected price and also because of an increase in second-hand sale of properties,? Kapoor said.

While the overall scenario in the sector continues to remain bleak, analysts attribute the sporadic increases in the buying pattern of customers to discounts offered by developers and people who were deferring purchases have finally started buying property. According to market sources, prices of residential properties in central Mumbai have corrected by 15%-20%, as developers are beginning to negotiate lower rates with the customers. Orbit Corporation?s Terraces project according to sources is being sold at approximately R17,000 per sq ft against a reported R20,000 per sq ft six months back. Indiabulls? Sky is believed to be selling at around R16,500-16,700 per sq ft against R20,000 per sq ft earlier.

In Mira Road, an extended surburb of Mumbai, prices are in the range of R3,800 per sq ft against R4,200-4,500 per sq ft earlier. ?Almost all builders big or small are ready to sit across the table with customers and negotiate rates. They might ask for a higher down payment though,? a property consultant said.