Mumbai January Home Registrations Fall 25%, Prabhudas Says
Mumbai’s January home sales registrations slid 25 percent from December, according to Prabhudas Lilladher Pvt.
Registrations declined to 4,427 units, the Mumbai-based brokerage said in a report yesterday. They stayed at 4,000 to 4,500 levels from June to November. Sales slid 13 percent from a year earlier, while lease volumes rose 10 percent from a year ago to 9,111 units, according to the report.
Property demand has slumped in the nation’s biggest cities as the Reserve Bank of India raised borrowing costs by a record 375 basis points since March 2010 to slow inflation even as property prices remained close to record highs.
“A number of projects which were stuck at the approval stage in the last year are likely to be cleared, paving the way for a large number of launches hitting the market,” Kejal Mehta, an analyst at the brokerage, said in the report. A large stock of new supply may act as “the trigger for the much anticipated price reduction that buyers have been waiting for,” she added.
Registration data is a lagging indicator of demand as properties are registered two to three months after the actual purchase.
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