As the Reality Sector has been worst hit in the recent/ongoing market meltdown, and as some Realty stocks have almost fallen by the wayside, things aren’t getting any better.
Though the builder lobby and the MCHI has changed track recently, and attempted to offer freebies like free registration, furnished homes etc , instead of biting the bullet and cutting prices, the demand has hardly picked up , as there were hardly any bookings in the recently held exhibition at Mumbai.
“What difference would an incentive make when there is nothing available for less than a crore?’’ questioned Rosalyn Edwards, a lecturer of MMK college, Bandra. “We just saw a two-and-a-half bedroom-hall-kitchen (BHK) flat on Jogeshwari-Vikhroli Link Road showcased by Kalpataru for Rs1.6 crore after the incentive. Not only that, admeasuring some 1,200 sq ft, the carpet area works out to barely 815 sq ft which seems nothing but a pigeon hole,’’ said Edwards. ..DNA
Property sales have plunged.
Further the more reliable govt stats also show a massive decline in Mumbai House Registrations.
Babasaheb Pardhe, the superintendent of stamps and registration, Mumbai said that there is a dip in the registration of flats. “One of the latest reasons is the economic slowdown and its effects on Mumbai’s real estate,’’ Pardhe said. Though the stamps and registration office in Mumbai has compiled figures up to August 31, 2008, the estimates show that September 2008 has seen further fall in registrations.
Though the stamps and registration office in Mumbai has compiled figures up to August 31, 2008, the estimates show that September 2008 has seen further fall in registrations.
“During the last financial year ending March 31, 2008, we registered 68,382 deals. This year, we have registered 23,502 deals till August 31,’’ Pardhe added….TOI
That is almost a 60% decline in registrations, showing that new property investors have made a complete exit while most genuine buyers are preferring to wait.
So will there be a shakeout in the industry ? Will there be a rapid decline or Meltdown in Property prices in Mumbai or will it be a slow and torturous fall in prices to more reasonable levels ?