Call it better deals in the property market or the falling rates, but after a prolonged lull, property buyers are making a comeback in Mumbai. According to property consultant Jones Lang LaSalle (JLL), about 16,990 units were sold in Mumbai city between fourth quarter of calendar year 2014 and third quarter of 2015, which is 28 per cent higher than the corresponding period last year.

“This increase could be attributed to fence-sitters having realised that a price correction of sorts has already happened — given that the capital values have not gone up in the last two-three years despite annual inflation of five per cent to eight per cent — and have started making purchase decisions,” Ramesh Nair, chief operating officer at JLL India, said in a note released on Tuesday.

Nair added that developers had been maintaining affordability of apartments by reducing the average apartment sizes in the city by roughly six per cent annually. “There has been a 26.4 per cent reduction in apartment sizes in Mumbai from 2010 to 2015,” he said.

According to JLL, there has been a drop of 26.5 per cent in new launches in 2015 against 2014. “As new launches reduce, i.e. supply goes down, we may see an increase in prices during the next two-three years. New launches are down 26.5 per cent in 2015 against 2014,” Nair said.

Quoting data from the Inspector General of Registrations, The Indian Express reported on November 16 that housing registrations in Mumbai’s Island City and its suburbs rose 15 per cent in the first seven months of the financial year at 43,608 units, against 37,875 in the corresponding period last year.

There were 6,129 home registrations in October this year, nearly 25 per cent more than last year.

There were 6,129 home registrations in October this year, nearly 25 per cent more than last year. In October 2014, when both Dussehra and Diwali were observed in the same month, there were 4,922 registrations, the report had said.

According Balaji Raghavan, head, real estate practice at IIFL, Mumbai had inherent demand from end users but soaring prices meant that users could not afford it.

"Demand is back wherever prices are affordable, developer is good and some amount of construction is happening," Raghavan said, adding that in three of the projects IIFL group unit marketed in Mumbai, the sales have been very good.

Amit Bhagat, chief executive officer of ASK Property Investment Advisors said that fall in interest rates and discounts offered by property developers coupled with festive season had helped homes sales in the city.

"Developers are also focusing on affordability factor to improve their cashflows," Bhagat said.

Property developers are also rejoicing the improvement in home sales.

"In the last two-three months, enquiries have gone up and closures have gone up in the last one month," said Niranjan Hiranandani, managing director, Hiranandani Constructions, adding the property developer has sold over 200,000 square feet of residential properties in Thane, on Mumbai outskirts.

"People are tired of stock markets (to give them better returns) and realing property markets give better returns in the long run," Hiranandani said.

Sandeep Runwal, director of Runwal group, said September to November period is much better than June to August period.

"Buyers are getting discounts of 10-20 per cent and realizing that prices may not drop further. So wherever, they are getting good deals, they are closing them," Runwal said.