Mumbai Looks Poised For Some Upward Growth In Real Estate Market

Real Estate market of Mumbai looks assured for some upswing after going through a lukewarm phase for the past few months

. Apparently there has been a marked increase in sales in March 2012 when 5,776 property in Mumbai were registered which is 37% more than 3,639 registrations in the month of February 2012.

By the same token, at least 50 residential property in Mumbai have been launched in the last three months which further underlines the positive sentiments in the real estate market of Mumbai. Today the developer fraternity is quite upbeat about this encouraging development in the past few months.

The recent registration of property in Mumbai is certainly encouraging and they are hopeful of number getting better from here on. Similarly as said by Executive Director of Jaycee Homes Ltd. Mr. Dipesh Bhagtani says,It's always good news when we see higher number of new residential projects launches and registrations.

However, developers have their own reasoning for this positive trend witnessed in the real estate market of Mumbai. The month of March is a festive spell which has also been instrumental in giving a boost to the sales in the residential property in Mumbai as observe developers. An auspicious occasions such as Gudi Padwa, Dhanteras and Akshaya Tritiya gives an impetus to booking of flats. As Gudi Padwa is a festive which fell in the month of March this worked as a major driver for registration of property in Mumbai. As several developers attracting home buyers with significant discounts and incentives the trend will continue to prevail since it is the most favourable day to purchase the flat or to perform their Griha Pravesh puja.

This festive occasion there is an affirmative sentiment in people and more prospects are keen to buy, a discount offer which helps them to take the decision faster, releasing some monetary burden. Evidently, bonus and healthy job market have certainly created an optimistic sentiment in the real estate market. This improvement has mostly come from the re-sale property rather than any fresh purchases.

Therefore , things will significantly change only if situation on pending approvals improves drastically. This create fresh supply in the market and ease the upward pressure on prices and will prove to be win-win for government, home-buyers and developers as well. Developers prove the primary reason is that the new Development Control Rules (DCR) that came into effect in January has been instrumental in boosting the sales. Bunching up of new residential property launches after the new DCR came into effect in January 2012 seems to have driven the recovery as observed by realty experts.

Now a days the customers and developers are certain of what they are buying and investing into. As they have made it mandatory for developers to sell flats on carpet pricing leaving no dispute on clarity of areas. The Reserve Bank of India cutting interest in rates for the first time in three years after raising borrowing costs by a record 375 basis points in 13 moves from mid-March 2012 as this factor has also been responsible for the spike in purchases. RBI lowered the repurchase rate to 8% from 8.5%. In passing time, Mumbais residential home sales recovered from a three-year low in the quarter ended in March.

by: lokeshmanu24

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