Mumbai property registration numbers to improve post demonetisation

Many expect home loan rates of 8% soon as banks are flush with funds

Property registration numbers in Mumbai would improve from November levels when demonetisation was announced as experts have said that with develops offering discounts and interest rates slashed, things are settling down. 

Property registration in the country’s commercial capital Mumbai touched a six-year low in November, reports said on Tuesday quoting data from state’s director-general of registrations show. The month saw a mere 3,799 property sales transactions registered.

Experts said in November property sales virtually came to standstill as people stood in queues to exchange their old notes of Rs 500 and Rs 1,000. A fourth of the property market is cash based with the luxury home market and secondary markets being dealt in cash.

"Our enquiries with brokers revealed that they are getting enquiries and some deals have happened. So things are picking up," said Abhishek Tiwari, founder, CRE Matrix, a real estate analytics platform.

Gupta said those who are willing to buy will pay by cheque. "But sales will be stable and do not expect prices to rise," he said.

Mumbai property developers were fighting a prolonged slowdown in sales for the last couple of years and home prices are stable.

"With the rates going down and government announcing sops for budget housing, I feel sales will pick up," said Amit Bhagat, chief executive officer at ASK Property Investment Advisors.

Bhagat said it is the best time to buy homes as one can negotiate with developers.

"Government is doing its best by giving 4 per cent exemption on interest on loans up to Rs 9 lakh and 3 per cent up to Rs 12 lakh loans," he said.

He said with rates going down, subsidies and favourable policies in the budget would help housing sector.

Many expect home loan rates of 8 per cent soon as banks are flush with funds.