[T.S.R:17096] India Real Estate: Registerations Fall, Buyers Seek Price Cuts & Getting Them

Mumbai Real Estate Continues To Weaken

HDIL, IBREL, Oberoi, DBRealty face softening demand 

Downward trend in Sales registrations continues

Sales registrations down 22% YoY, mirroring the trend in January 2011  Lease volumes continue to trend up, reiterating the stress on affordability

Sales volumes in the City and Suburbs are off ~45% from their 2010 peak  

The down trend in sales volumes for the month of February mirrors that of January 2011. Sales registrations at 4,716 are down 22% YoY and 7% MoM. Adjusting for lesser days in the month of February, the numbers are similar to last month's dismal numbers. The 3

‐month moving average graph for sales registrations clearly illustrates a continuation of the down trend. 

Lease volumes continue to trend up, coming in at 8,055, up 20% YoY. Our interpretation of the sustained upward trend in lease registrations is that increased stress on affordability on account of increasing interest rates along with the expectation of a correction in property prices is leading to a deferral in purchases. 

Mumbai '

Suburb' sales fell sharply, down 26% YoY again this month, following a 26% YoY fall in January. On the other hand, Mumbai City Sales at 824, are up 13% YoY; however, on a lower base of last year. Although February 2011 figures suggest a divergent trend, a sharp slowdown is visible in both City and Suburbs, with volumes down 45% and 46%, respectively compared to their peaks in 2010. 
 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

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