Thursday, June 14, 2012

Mumbai property registrations show recovery signs

Property registrations in Greater Mumbai declined ~10% YoY and ~3% QoQ in the quarter. However, QoQ decline is attributed to the higher registrations in Q3FY12 due to the December effect.

Property registrations for March and April were 5830 and 5150, respectively, which are well above the Jan‐Feb numbers of ~4100‐4300, indicating an uptrend in registrations. The Maharashtra government’s recent decision to introduce the amended Development Control Regulations (DCR) for Mumbai city/suburbs is a significant positive. We believe this development will spur new launches in the city which had been on hold for over a year. We expect new launches to be attractively priced (~5‐10% lower than prevailing rates), which along with softer interest rates, will drive volumes in the city.

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