Mumbai Real Estate- Registrations continue to trend down ::Prabhudas Lilladher

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 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

Downward trend continues
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.


City and Suburbs sales volumes are off ~45% from their 2010 peaks
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.