Property sales registrations in Mumbai fell on an annual basis, for the seventh month in succession, as realty prices remained high in the country's commercial capital.Mumbai saw registration of 4,716 sale deed agreements in February 2011, down 22 per cent compared to the same month in 2010 and seven per cent lower than those registered in January 2010, says a report from equity brokerage Prabhudas Lilladher, quoting the Director General of Registrations. The fall in February was the second-highest fall in the past seven months. December 2010 witnessed a 29 per cent fall in the number of documents registered, year-on-year.
In the Mumbai suburbs, sales fell 26 per cent on an annual basis, following another 26 per cent fall in January. Mumbai city saw sale of 824 properties, up 13 per cent on an annual basis.
The report says volumes were down 45 per cent and 46 per cent in city and suburbs, respectively, from their peaks in 2010.
"The price fall is very insignificant in the last couple of months. We believe on a year on year basis, this trend will continue for the next couple of months. But on a month on month basis, it is difficult to say anything, as figures may fluctuate," said Kejal Mehta, an analyst with Prabhudas Lilladher.
Property developers agree. "Though property prices remain high, people are shying away from buying under-construction properties where deliveries are a couple of years away. I believe the falling trend will continue till the end of the month. We have to see how things will pan out in the summer vacation and festivals,'' said Pujit Aggarwal, managing director of Mumbai-based Orbit Corporation.
However, the report says lease volumes in Mumbai are seeing an upward trend, due to the affordability factor. Mumbai saw 8,055 lease agreements in February 2011, which was 20 per cent higher than February 2010.
"Increased stress on affordability on account of increasing rates, along with the expectation of a correction in property prices, is leading to a deferral in purchases," said Kejal Mehta and Dhrushuk Jhaveri in the report.
