In what could perhaps be some relief to the sluggish real estate market in Mumbai, the first quarter of the current financial year has seen a slight uptake in property registrations on account of first-time home buyers taking the plunge in the absence of price correction and from NRI-led demand due to significant weakening of the rupee, said a research report today.
According to a report by Prabhudas Liladhar, Q1FY13 sales registrations have been slightly stronger, up 6 percent on a sequential basis."The March-May period witnessed registrations above the 5000 mark as against the dismal levels being witnessed in the period prior to that," said the report.
The slight improvement has been seen because sales in extended suburbs are better, said Pankaj Kapoor, MD at property research firm Liasas Foras.
With interest rates remaining high and the cost of land constantly rising, developers are sitting on highly leveraged balance sheets. This is why a price cut becomes a strong possibility.
The brokerage, however, is cautious on the sector as challenges to the sale scenario remain high and more needs to be done to correct the stressed affordability equation amid high property prices.