Property sales registrations in Mumbai fell about 5% in August compared with July, as Buyers continued to resist purchasing houses in a sluggish real estate market. On a year-on-year basis too, registrations have fell 2.4%. The absolute decline from the peak of May stands at 13%, a September 21 report by domestic brokerage firm.
Lack of project launches, dearth of options in the affordable housing segment coupled with high interest rates and Developers holding on to higher prices continue to ail housing sales. The onset of the festival season could see a bit of cheer for residential sales.
According to the findings of Real Estate Consultant CB Richard Ellis’s (CBRE) August 2012 report titled ‘Market View India Residential’, the residential market in Mumbai witnessed subdued growth in the first half of 2012 in the back drop of high interest rates. While there was a decline in supply addition compared to the second half of 2011, the stock of unsold inventory increased during the review period.
South and Central Mumbai, which offer premium residential options, witnessed limited supply during the first half of 2012. Developers adopted a cautious approach due to large inventory of unsold stock in these micro-markets.
While Mumbai continues to be a prime residential investment market, affordability and credit costs have become critical issues guiding residential demand in the City. High interest rates and weak Investor sentiment have taken a toll on the sector. A downward revision of interest rates by the RBI might encourage Buyers and Investors to revive decisions.
According to a report, by Knight Frank India, and another Global Real Estate Consultant, the Mumbai residential market has an unsold inventory of 90,000 units which forms 37% of the total residential supply under construction.
They were selling 80,000 units a year, now they are at 45,000. It’s a huge dip. But, the liquidity crisis is not as widespread. Many projects have become cash neutral in terms of the sales achieved. No economy can last a sustained period of downturn. Already, interest rates are taking a ‘U’ turn, which should boost the demand soon.
What are the other essentials of a Valid Agreement?
Under Section 10 of the Indian Contract Act 1872, “All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void.”
The following are the essentials of a valid agreement
1. There must be two parties one making the offer and the other must accept the offer made by the other party.
2.There must be an intention among the parties to create a legal relationship
3.The parties to an agreement must be competent to contract. In other words, the person must be major, must be of sound mind and must not be declared disqualified from contracting by any law to which he is subject.
4.There must be a lawful consideration.
5.There must be free consent of the parties to the agreement.
6.The object of an agreement must be lawful.
7.The terms of the agreement must be certain and unambiguous.
8.The agreements must not have been expressly declared void under the law.
9.The terms of the agreement must be capable of performance.
10.The agreements must comply with the formalities in writing and others like registration, stamp duty etc.,
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