subject: Recovering From 3-year Low On New Projects - Mumbai Home Sales [print this page] As stated by Liases Foras Real Estate Rating & Research PvtResidential property of Mumbai sales recovered from three year low in the quarter ended March as new projects increase in demand.
Sales in property of Mumbai, Indias most expensive property market rose up 20% from the previous quarter to 9.13 million sq ft, as said by Mr. Pankaj Kapoor founder of Liases Foras a Mumbai based Real Estate Research Company.
Sales in new residential property in Mumbai has resulted in spike in Mumbai real estate market. But still Mumbai real estate market has moved into hibernation as record unsold units and prices are resulting in dismal sales. As Mr. Kapoor estimates there were more than 150 new residential projects started last quarter.
Indian Central bank cut interest rates for the first time in three years after raising borrowing costs by a record of 375 basis points in 13 moves from mid - March 2010. Reserve Bank of India lowered the repurchase rate to 8% from 8.5%. Outcome was predicted by three of 25 economists in a Bloomberg News survey.
Mumbais unsold inventory or the number of months needed to clear stock at the existing absorption rate was at 40 months, said by Mr. Kapoor. Healthy Real Estate Market normally maintains about eight months of inventory.
Sizeable Inventories :
Indias largest mortgage firm, Housing Development Finance Corp. (HDFC) is the client of Liases Foras says, Mumbais unsold units climbed to a set record of 129.55 million sq ft. Weighted average selling price rose to a record 10,833 Rs. ($205) sq ft as per data showed. Apartment registrations in Mumbai fell 19% in the year ended March 31st, IIFL Ltd. said in a report on April 18th.
Mr. Bhaskar Chakraborty, an analyst at Mumbai based brokerage IIFL said, despite weakness in sales volumes, the prices of residential property in Mumbai have risen as high as to 25%reaching a record high.
The sales in the National Capital Region, includes New Delhi and its surrounding areas gained 36% to 30.99 million sq ft in the quarter, as showed in Liases Forass data. Weighted average selling price rose to 3,570 Rs. a sq ft, 5% higher than the previous quarter.
Last but not least, Bangalore and Chennai posted the largest sales increases in month of December quarter had declines of 25% and 13% respectively in the March quarter, Mr. Kapoor said. Residential property price climbed 3% in Bangalore while Chennai recorded a 5% increase and Hyderabad posted a record decline in sales dropping to 57% to 2.64 million sq ft.
