Recent figures showed that it has been a slow start to 2011 in one of Indiaââ¬â¢s major cities. Property sales in Mumbai fell in February for the second consecutive month with buyers uncertain about buying after sharp price rises and recent interest rate increases.
Sales in Mumbai down in early 2011
According to a report by Prabhudas Lilladher, sales registrations in Mumbai are down 22 per cent from February 2009 to February 2010 and fell by 7 per cent from January to February 2011.
ââ¬ÅThe three-month moving average graph for sales registrations clearly illustrates a continuation of the downtrend,ââ¬Â the brokerage reports. Whilst sales are down, leases have increased significantly, probably as a result of more people being unable to purchase thanks to sharp property price rises over the last couple of years.
Sales in Mumbaiââ¬â¢s suburbs fell by 26 per cent year-on-year in February although the city centre bucked the trend with sales up 13 per cent year-on-year.
Volume of sales of property in India likely to fall in 2011
Experts in the country believe that increasing interest rates and rising property process will lead to the number of house sales declining across the country in the first half of 2011.
A report from Edelweiss says: ââ¬ÅVolumes in Mumbai are down 50 per cent below peak levels and we believe a similar trend, though less acute, may play out in the National Capital Region (NCR) over the first half of calendar 2011.
ââ¬ÅWe have maintained a view of prices in Mumbai correcting by about 15 per cent in 2011 on account of high prices and dampened buyer sentiment. In this regard, our channel checks indicate initial signs of prices softening in central Mumbai. However, we believe the correction of about 15 per cent is limited to premium high-rise projects in the initial stages of construction and does not represent a broad-based correction in Mumbai.ââ¬Â
