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Mumbai Real Estate: Sustaining well

Prabhudas Lilladher | 19 Jun, 2013  | Follow Author | Add to my Favourites 
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  • Low base of CY12, festive launches keep sales numbers strong
  • ‘City’ registration numbers lead the way
  • Leasing scaling new highs
  • Monetary easing in the near term unlikely

Strong numbers for the first five months of CY13
Sales registrations, through the first five months of CY13, have held strong, given the low base of CY12, coupled with the festive season launches post a long hiatus. Post the strong spurt in March 2013, where sales registration hit a 31-month high, April and May witnessed a small monthly decline of 8% and 6%, respectively; however, grew 24% and 15%, respectively, on a YoY basis. The number remained north of the 6,000 mark in both the months.

The growth was led by sales from Mumbai ‘City’ as against suburban Mumbai on account of the large launches that took place in the city-centre. In fact, the number for ‘City’ sales was positive not only on a YoY basis but also on a QoQ basis.

However, given the lack of launches in the last few months and the expected slowness in the same during the monsoon season, Prabhudas Lilladher expect sales registration numbers to weaken over the next few months.

Lease registrations are also picking up at a tremendous pace, with April 2013 displaying the highest number that we have witnessed (north of 12k). This trend clearly displays a preference towards leasing over buying property, given the sticky property prices and declining rentals. Lease numbers have remained strong despite slackness in the commercial real estate space. Hence, any pick-up in the same could only propel the number northwards.

Several launches from developers in the listed and unlisted space in the city are on the card; however, have been getting delayed on account of approvals and clearances. Prabhudas Lilladher expect the second half of CY13 to be stronger in terms of launches which shall also coincide with the festive season.

The RBI, in its mid-quarter monetary policy review, effected no changes in either the repo rate or the CRR. Its cautious tone makes monetary easing in the near term a bit uncertain, which is not so positive for the real estate sector as it is unlikely that lending rates would come down in a hurry.

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About Prabhudas Lilladher

Prabhudas Lilladher has a nationwide distribution network, consisting of branches, franchisees and associates, providing a comprehensive gamut of financial services in the Institutional and Retail domain. Their services includes Equity, derivatives; margin funding, mutual funds, PMS, IPOs and online trading.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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