The boom in the Mumbai property market seems to be back as there seems to be ample movement in the market especially in the residential segment.

The present market has revived much quicker than anticipated by a lot of analysts and it is imperative that one studies and understand the trends in
the market and take an informed decision. The locations where there is ample stock are moving slowly but locations where there is limited stock have seen a rise in the prices and there is an immense shortage of A grade quality stock in most of the locations and hence people are also keenly looking of
opportunities in the re-sale market where there is enough recycling happening as either people are relocating to different locations for want of
larger apartments or even consolidating.

A lot of Investors who were waiting for the markets to climb back up are also seen exiting the markets and profit booking to invest in the next
projects. Mumbai is emerging as a very important City in South East Asia today and with infrastructure and over all development bound to happen over the course of years it is unlikely that the property rates will come down drastically from here onwards unless the Government does some major policy change in the FSI, CRZ and SRA laws all across the city.

The present day market has already seen a price escalation from 5-15% across Mumbai and especially in the belt between Bandra and Borivali where maximum movement has been seen. However, Thane and Navi Mumbai are lagging a little behind due to the massive supply but by Diwali and end of the year the sales are expected to pick up in these locations. Affordable housing being the mantra of the day has seen distant locations like Virar, Kharghar, Kamothe, Mira Road and Vasai also being in the lime light with builders regaining ground with a lot of transactions.

The real estate market seems to be driven this time around by actual user demand which is rising on the back of renewed confidence in the economy,
present day situation of the stock market and riding on the back of the stable government and of course the sops given by the Government in the low
budget section with interest rates of around 8%. People who have leased properties in the past are also seen converting from tenants or Licensee's
to actual home buyers and that is one of the good reasons that there is ample availability coming up on lease all over Mumbai.

Another point to ponder upon is that one cannot take stock of the present situation from the movement which is seen over the last quarter, however, it
will be interesting to see the market evolve and unfold over the next two quarters and that will give us some road map going further here on. A lot of
public sector and private sector banks have recorded a high number of sales in the market and they been closing a lot many transactions compared to the earlier quarter which was extremely cold. Even the IPO Market seems to be hotting up as there is slew of IPO's lined up by various developers till
March 2010.

At a recently concluded conference by CII on Real Estate, where a lot of Top Developers of Mumbai participated and most of them felt that, yes, there was very good movement in the market seen over the past quarter and the outlook looks positive and one should now be careful that the prices should not be increased merely for profit booking and let the growth be a gradual one keeping in sync with the demand and supply.

The present demand in Mumbai seems to be coming from Corporate Executives, business families and investors who have leased their properties with
handsome returns in the past and this demand is more for ready construction homes or buildings which are nearing completion. The top developers who have maintained transparency in transactions seem to have to done most of the business while a lot of 2 tier and 3 tier builders are still facing flak
from home buyers as the home seekers are now getting clarity of thought that they do not want to buy homes in properties where there is no clear title
and even banks have become stringent in the funding towards funding in principles as they do  not want to have any NPA's on their books.

The re-sale market which is also called the Secondary market is also showing ample movement as there could be a lot of opportunity for both the buyer and the seller to encash upon and transact. The challenge both buyers and sellers are facing are on 2 accounts, one being the seller not having a
clear title to sell a lot many times and not having completed 3 years for the Capital Gains and coming out in the market to sell, this is mostly seen
in new complexes where people have invested in year 2005/6/7 respectively and they are now in the market to book profits or reinvest in other
projects. A simple tip to the home buyers who are seeking loans in this market is to get a pre-sanction letter with your bank done before you step
out to buy as the opportunities  may be very limited in today's market and then when the time comes to transact you should not be pulled down for want of these legal clearances.

The predicament the Sellers are in that whether to still hold on or encash the profits or sell while the markets are in a movement mode. The markets
have become so uncertain in certain locations and keeping in mind external factors a buyer or even a seller is not able to have a vision or an outlook
beyond 3 months.


After Navratri, the markets should come back in full throttle and a moving market means typically, you can plan your moves and shift gears to maximize on  profits, change your homes, location, get a bigger apartment or sell your existing one and get the capital etc. so to summarize you should not wait in this market and make the best of the moment.

Sandeep Sadh
CEO
Mumbai Property Exchange.com