Mumbai real estate to bleed: Prabhudas Lilladher

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Mumbai real estate to bleed: Prabhudas Lilladher

Prabhudas Lilladher has come out with its report on mumbai real estate.

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Prabhudas Lilladher has come out with its report on mumbai real estate.

• Sales registrations down 31% YoY at 5,047
• Quarterly performance of listed developers echoes slowdown trend visible in registrations
• RBI s aggressive rate hike (+50 bps) in July to aggravate sector's woes
• Lease registrations up 19% YoY at 9645 continuing their upward trajectory

Sales registrations down 31% YoY, pain visible in the listed space:

Sales registrations for the month of July are down 31% YoY to 5,047 levels pointing to a continuation of the downtrend. In the listed space, Mumbai realty developers have echoed the slowdown trend visible in the falling Sales registration numbers.

• HDIL launched a new project in Mulund and received a tepid response (only ~10% of project sold)
• TDR sales volumes for HDIL were down 24% QoQ indicating partly an overall delay in approvals, but mainly demand pressures in the system
• Orbit Corporation witnessed sales of a mere ~10,000 sf for the quarter, levels last seen in the September 2008 quarter
• The only company that bucked the trend was Oberoi Realty where its newly launched Goregaon project continued to witness a decent response.

In its monetary policy announcement at the end of July RBI raised rates aggressively by another 50 bps to tackle inflationary pressures. The double whammy for developers continues with borrowing costs on the rise along with worsening buyer affordability.

Lease registrations continue their upward trend up 19% YoY to 9645, although a tad lower than the all time high numbers seen last month.

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To read the full report click on the attachment