Home registrations surge 24% in March in Mumbai

Home registrations have shot up 24% in the city, in March. Analysts say the rise in registrations (for purchase of new and old homes) in March (compared to February) was due to seasonality and tax benefits.

Sandeep Kotak, executive vice president, real estate group, Kotak Mahindra Bank, calls it a blip than a trend. “Most of the sales are happening in Thane, Dombivli and Virar and not in the island or suburban city. Prices may not see a major correction as supply remains an issue; they may correct marginally around 10% to 20% for certain projects,” he said.

Data with the Mumbai registrar says that the total number of registrations in March were around 5,912, higher than 4,759 in February 2011. The data includes apartment deeds, agreement deeds, certificate of sale and conveyance.

“The spurt in March could be because of property registrations before the end of the financial year for tax purposes. Earlier years witnessed similar increases in March,” the note said.

“Sales are unlikely to fall, they would continue to be stagnant but we do expect a price correction trend to begin now,” said Pankaj Kapoor, founder and managing director, Liases Foras Real Estate Rating & Research.

The island city recorded around 1,114 registrations in March, 26.73% higher than 879 in February while suburban Mumbai saw an increase of 23.63% from  3,880 in February to 4,797 in March.