Home sales recover with Mumbai up to 7-year high

SINGAPOREIndia’s home sales are staging a recovery from a slump last year, when the government suddenly cancelled most of the nation’s currency to crack down on the shadow economy.

Sales in Mumbai, the nation’s financial capital, jumped to the highest in seven years in the secondquarter (2Q), according to property consultancy Liases Foras Real Estate Rating & Research Pte Ltd. Across eight major cities, sales gained 6% from the previous quarter.

Homes costing less than five million rupees (RM333,840) accounted for more than half the sales. Affordable homes, classified as below 2.5 million rupees, made up 17% of sales. Of the eight cities, Mumbai recorded the greatest proportion of sales of this type of dwelling, at 24%, data from Liases Foras showed.

Inventory levels, calculated based on how long it would take to sell stock, fell from 47 months in the previous quarter to 44 months. Buoyant sales came even after the government rolled out tighter rules for developers, including restrictions on pre-selling apartments before building approvals, and requirements for registering projects with a regulator.

Across the eight cities, sales rose 21% in 1Q after a 15% decline in 4Q. “Despite it being a tough quarter for real estate after the introduction of the new law, sales have risen,” Pankaj Kapoor, the founder of Liases Foras, said by phone from Mumbai. — Bloomberg