Mumbai's real estate market has seen continuous recovery over the past months, thanks to new property projects and better home sales.
According to Live Mint, in November to December of last year, residential sales have substantially improved and customers have started buying again, compared to previous months' market activities. There has been a gradual price correction for properties in the past year. A steady stream of new projects was also recorded, which prompted investors on stand-by to purchase again.
For instance, industry big names such as Oberoi Realty Ltd, Godrej Properties Ltd, Mahindra Lifespace Developers Ltd and Lodha Developers Pvt. Ltd had successful project launches in 2015. In April-December last year, Lodha reportedly earned a net sales of Rs.5,000 crore, while Oberoi Realty saw its net income increase to Rs.781.91 crore in December 2015 from Rs.217.06 crore in December 2014.
There were not many property buyers in the past two years, resulting in increased inventory and loss of appetite among investors. For some of the new projects launched, the prices are low which have helped in improving the sales and enticing old clients to return again.
"If property prices don't go up this year, the city will see a significant rise in sales momentum because the housing demand is huge and customers are waiting and watching," said Pankaj Kapoor, managing director at property consulting firm Liases Foras Real Estate Rating and Research Pvt. Ltd, as per Live Mint report.
According to NDTV, home prices are set to decline further with property developers offering 20 percent discount to homebuyers. The discount becomes feasible as needed permissions become lesser and faster. BMC has reduced the number of permissions from 119 to 58 and the time to accomplish them to 60 days from the previous one to two years.
Anand Gupta, spokesperson for Builders Association of India, said that with this development, "there will be substantial reduction in price, and we will be able to give the end user a discount up to 20 per cent."
