The builders may refuse to acknowledge it, but here’s proof that the city’s real estate market is facing a slump. Figures with the state’s registration department reveal that property sales this November have been the lowest in the past 31 months.
Only 4,060 sales were registered, shows registration data obtained by Prabhudas Lilladher, a leading financial firm, which said the exorbitant rates are the reason for the decline.
“If the current status quo on pricing is maintained, things can get worse for the sector before getting better,” stated the firm’s report, which was released to the media on Tuesday.
“Developers need to act on the pricing front to revive the sector.”
Last November, the number of registrations was at 4,872, which is 20% higher than this November.
In the past months, prices have skyrocketed, and most flats being built within the city limits are luxury apartments that cost not less than Rs 1 crore.
“It has become unaffordable even outside the city limits. I am just waiting,” said Pritam Sharma, a public relations consultant and Bhayander resident.
Sangeet Kumar, CEO, 1stmumbaiproperties.com, believes the time is right for people with money to do some hard bargaining. “As there are no sales, many builders are ready to negotiate,” said Kumar.
“The prices will not fall as there is hardly any housing stock,” said Nayan Shah, chairman and managing director, Mayfair builders. “The day the government decides to ease approvals, there is bound to be correction.”