Property sales in Mumbai hit a six-year low in December on the continuing impact of demonetisation, reports Shubhra Tandon in Mumbai. Data sourced from the Director General of Registrations show there were 4,849 transactions registered last month, taking the total for 2016 to 65,371, a 4% fall over 2015.
While the number of registrations in December are better than in November, which saw just 3,799 registrations, they’re lower than in previous years when the range was 6,200-8,000. The previous low was seen in December 2011, when the number of registrations was 5,037.
Traditionally, registrations spike in December as buyers rush to register their properties before the revision in stamp duty and registration charges on January 1.
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As such, the record low registrations in December 2016 are a sign of how subdued the property market is.
Clearly, developers’ efforts to come up with innovative schemes and discounts have not been enough to tempt buyers. Samantak Das, national director (research), Knight Frank India, confirms both November and December have seen subdued sales.
Analysts say home sales have slumped by an estimated 35% in November and December post-demonetisation and that this will impact real estate companies. “Market-wide volumes could correct over the next two to three quarters by 10-30%. This will delay projects of several unorganised developers further, as availability of credit is limited,” analysts at Kotak Institutional equities said. Oberoi Realty’s consolidated net profit declined by a sharp 60% year-on-year to Rs 85 crore in the three months to December 2016.
