Property sales in Mumbai went down against December 2012
Most part of the previous year witnessed slump in real estate market. However, December 2012 saw a substantial recovery in home sales registrations.
But according to the market experts, the rise in property registrations was only due to marketing gimmick and not a sign of revival.
As per data from the Director General of Registrations, a total of 6,193 registrations of properties in Mumbai were made as compared to 4,370 in November and 4,115 in October. However, total house registrations in 2012, however, remained lower at 58,202 as compared to 58,422 in 2011.
According to MCHI-CREDAI, there was always a good demand for property in Mumbai but buyers having an instinct that property prices will go down made them step back. Now, with property prices remaining rigid, those who have been sitting on the fence, have finally started buying property.
Towards the end of last year, various property exhibitions helped the developers attract more property buyers.
As per Knight Frank’s survey in June, real estate in Mumbai had an unsold inventory of 80,000 units, worth approximately Rs 1,05,000 crore.
Though it looks like property market has again revived but the reality is, it is due to some technical reasons along with marketing gimmicks.
Furthermore, attractive schemes and price cuts and pre-launch of projects have led to some increase in home sales. For instance, developers such as Lodha Group have priced certain projects 15 to 20 percent lower than the market rate.
Currently, developers who have taken up more projects are facing shortage of capital. They are forced to sell their flats at lower rates now. Also, buyers who had bought flats earlier are now rushing to register their flats witnessing hike in stamp duty rates as ready reckoner rates are revised.
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