The pick-up in transactions was evenly spread, with both the island city and the suburbs (Rest of Mumbai) witnessing a 25 per cent MoM and 21 per cent MoM increase in transactions. Residential prices in Mumbai are at lifetime peaks. June 2010 registrations data indicate demand continues to be resilient.

In a recent interaction, HDFC indicated that volumes in Mumbai have fallen, but are not yet alarming. HDFC believes prices are unlikely to increase meaningfully from here on. Expect the pace of price increases to abate. IIFL, feel the continued strength in apartment registrations should sustain the ongoing rally in real estate stocks in the near-term. Mumbai based developers like HDIL, Orbit and Indiabulls Real Estate could see near-term upside.

Mumbai registrations stage a comeback in June: After falling 25 per cent MoM in May 2010, apartment registrations in Mumbai staged a smart recovery, reaching 6,500 (up 22 per cent MoM) in June 2010. Despite prices in Mumbai touching new highs, the MoM growth in transactions reveals that demand in Mumbai remains healthy. The MoM growth in transactions was evenly spread across the suburbs as well as the island city. However, YTD CY10, suburban registrations continue to outpace registrations in the island city, driving the overall growth in registrations.