Mumbai property market makes a comeback as buyers return

Lower interest rates, discounts and affordable prices have lured consumers back to the Mumbai property market

Call it better deals they are getting in the property market or the falling rates, but after a prolonged lull, property buyers are making a comeback in Mumbai.

Quoting data from the Inspector General of Registrations, The Indian Express reported Tuesday that housing registrations in Mumbai’s Island City and its suburbs rose 15% in the first seven months of the financial year at 43, 608 units, compared to 37,875 in the same period last year.

There were 6,129 home registrations in October this year, nearly 25% more than last year. In October 2014, when both Dussehra and Diwali were observed in the same month, there were 4,922 registrations, The Indian Express said.

According Balaji Raghavan, head, real estate practice at IIFL, Mumbai had inherent demand from end users but soaring prices meant that users could not afford it.

“Demand is back wherever prices are affordable, developer is good and some amount of construction is happening,” Raghavan said, adding that in three of the projects IIFL group unit marketed in Mumbai, the sales have been very good.

Amit Bhagat, chief executive officer of ASK Property Investment Advisors says fall in interest rates and discounts offered by property developers coupled with festive season has helped homes sales in the city.

“Developers are also focusing on affordability factor to improve their cashflows,” Bhagat said.

Property developers are also rejoicing the improvement in home sales.

“In the last two-three months, enquiries have gone up and closures have gone up in the last one month,” said Niranjan Hiranandani, managing director, Hiranandani Constructions, adding the property developer has sold over 200,000 square feet of residential properties in Thane, on Mumbai outskirts.

“People are tired of stock markets (to give them better returns) and realing property markets give better returns in the long run,” Hiranandani said.

Sandeep Runwal, director of Runwal group, said September to November period is much better than June to August period.

“Buyers are getting discounts of 10-20 per cent and realizing that prices may not drop further. So wherever, they are getting good deals, they are closing them,” Runwal said.