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MUMBAI RESIDENTIAL MARKET UPDATE APRIL - JUNE 2020

Market Sentiment INSITE acres ’s No.1 Property Portal

FROM CBO’S DESK

A drastic drop in the number of new providing some relief from the residential launches and poor sales volume COVID-19-induced crisis. After some defined the ‘real’ story of residential setbacks, the traffic and responses on realty across metro cities in Apr-Jun 2020. 99acres returned to pre-COVID levels by Shortage of construction workers, liquidity the end of June 2020. A survey by 99acres constraints faced by developers and the revealed that 75 percent of its registered withdrawal of homebuyers impacted market buyers now prefer shortlisting or buying sentiment adversely. a property through real estate portals. Further, 60 percent of the participants Delhi NCR, and Hyderabad lost averred that they would prefer undertaking the largest share of new launches and a virtual tour before physically visiting the reported a dip of 80-95 percent, each, project site. QoQ. Cumulatively, the period witnessed an addition of a mere 1,400 units in the Nonetheless, to witness a complete revival, top eight metros. The ensuing credit the industry would need more support from crunch with both buyers and developers the Centre beyond measures such as home is expected to shrink housing sales from loan moratorium and declaring COVID-19 as four lakh units in 2019-20 to 2.8 lakh units a Force Majeure event to witness revival. in 2020-21. While all metro cities reported status quo in average weighted capital prices, experts foresee average ‘asks’ in the resale segment dipping by an average of 10-15 percent in the months to come. To sustain businesses, several developers Maneesh Upadhyaya underwent digital transformation with Chief Business Officer virtual project launches and e-site visits 99acres.com

INSITE : Mumbai 3 COVID-19 AND NATIONAL REAL ESTATE OUTLOOK

HOME BUYING SENTIMENT Home buying sentiment remained muted during April due to the nationwide lockdown; with enquiries picking up slight pace in June. Genuine homebuyers flocked the market looking for attractive schemes and discounts. NRI demand, too, resurged, with some conversions in the mid-income housing bracket across cities. IMPACT ON INDUSTRY The COVID-19 crisis disrupted the supply chain of realty raw materials, and led to reverse migration of labourers and fund constraints PROPERTY PRICES at developers’ end. The sector went through a major digital While the negotiation window widened up to 10-15 percent transformation as developers shifted online to market their projects across budget segments, any actual correction in prices was and engage with customers, and Government bodies, such as NCLAT not noticed. Barring Delhi NCR, all metros maintained status and RERA started addressing homebuyers online. quo in average weighted capital ‘asks’, QoQ. With wafer-thin The Apr-Jun 2020 quarter saw the lowest number of new launches margins at the hand of developers, any price correction in since 2013 and sales remained 75 percent lower than the previous future is unlikely. quarter. Invoking of Force Majeure brought some relief as ongoing projects got up to a nine-month extension under Real Estate (Regulation and Development) Act, 2016. The suspension of Insolvency RENTAL LANDSCAPE and Bankruptcy Code (IBC) for a year, too, is a relief for developers. Amid restrictions to move around, the rental market remained intact in Apr-Jun 2020. There was no movement in average ‘asks’ across cities, except for some discounts and IMPACT ON HOMEBUYERS leeway offered by property owners to support the tenants With ongoing projects delayed by at least six months, homebuyers struggling financially. PG accommodations and guesthouses expecting possessions received a setback. Job losses and pay cuts took the brunt as people moved to their hometowns due to affected the paying capacity of homebuyers, who shelved their buying an extended lockdown. decisions in the wake of market uncertainties and expectations of price cuts. While reduced home loan interest rates from most banks make it an opportune time to invest in real estate, a large share of prospective SUPPLY homebuyers await more clarity in the ensuing months. New project launches remained nil during the quarter and progress on ongoing projects suffered on account of reverse The extension of the Credit-Linked Subsidy Scheme (CLSS) under migration of labourers and disruptions in the supply chain. Pradhan Mantri Awas Yojana (PMAY) might be a benefit for those Property owners unwilling to sell at a reduced price exited looking for affordable homes. Existing homeowners welcome home from the secondary market. Unsold inventory stood at 6 lakh loan moratorium of six months announced by the Government in April. units at the end of Apr-Jun 2020.

INSITE : MUMBAI 5 acres INSITE : Mumbai 5 India’s No.1 Property Portal MARKET MOVERS Infrastructure projects regain momentum The Environment Ministry’s go-ahead to the 701 km-long Mumbai-Nagpur Highway that would pass through 10 districts, 26 talukas and 392 villages bodes well for the realty market of Mumbai and the areas around. Besides, the resumption of construction work on the nine metro corridors is also a significant relief as alongside improving connectivity; the new links would uplift realty demand in neighbouring locales.

Property registrations resume across the city Re-opening of the registration offices after a hiatus of about two months may restore the homebuying trend in the city. Along with Mumbai, registration offices in Pune and Nagpur have also resumed operations.

Banks reassess the pending home loans In the season of layoffs and salary cuts following the COVID-19 lockdown, COMMERCIAL lending institutions are re-scrutinising the salary slips of home loan applicants to gauge their financial stability. The move may put homebuyers in soup, as either they may have to cancel their bookings or look for an REAL ESTATE alternate source of funding. OUTLOOK Digital land records cease to be official documents Online 7/12 extracts issued by the Aaple Sarkar centres will not be treated • Waivers in common maintenance charges, extension of rent-free periods and as official documents for land transactions. Given the increasing number of up to 25 percent price reduction helped improve sentiment in the commercial online frauds, the State government has passed the decree to protect the title leasing segment for bigger floor plates of 30,000-40,000 sq ft. of land for investors in . • Office transactions declined by over 40 percent in Apr-Jun 2020 vis-à-vis Jan-Mar 2020. This indirectly benefitted the co-working sector in and around , where players pre-leased co-working spaces for the ensuing quarters.

• Companies scaling down their operations due to revenue losses in the lockdown period preferred small Grade A spaces between 1,000 sq ft and 5,000 sq ft.

• The only major deal materialised in the city was by Vrihis Properties in BKC at Rs 490 crore. Besides, Elomatic-Pharmalab and a couple of other shipping companies in and shifted their base to Belapur due to its proximity to JNPT Port and relatively lower lease rates, i.e. around acres Rs 50-60 per sq ft. India’s No.1 Property Portal INSITE : Mumbai 7 * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com MUMBAI’S REALTY AT A GLANCE

Property Rental Prices ‘Asks’

Price movement in key micro-markets

Localities Apr-Jun 2020 QoQ YoY Rental % Change % Change Yield (East) Rs 5,010 - 5,900 -2% -2% 3% Demand Supply (West) Rs 5,550 - 6,500 0% 3% 3% Rs 4,430 - 5,130 0% 2% 2% Rs 5,950 - 7,010 -1% 4% 2% Rs 15,110 - 17,440 1% 2% 3% Rs 7,820 - 9,220 0% 1% 2% * Property prices represent quarterly change * Rental ‘asks’ represent yearly change * Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com Rs 3,410 - 3,980 0% 1% 2% Goregaon (East) Rs 14,660 - 18,060 -1% 2% 3% Rs 4,970 - 5,690 0% 1% 3% (West) Rs 13,260 - 16,150 0% 0% 3%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com ** Rental Yield has been calculated for a 1,000 sq ft apartment

INSITE : Mumbai 9 acres DEMAND & SUPPLY India’s No.1 Property Portal DYNAMICS MUMBAI METROPOLITAN REGION 99ACRES’

22% OUTLOOK

Over two months of lockdown, unchanged circle rates 29% and job losses collectively impacted the home buying sentiment in Mumbai in Apr-Jun 2020. While enquiries gradually increased to about 50 percent of the pre-COVID-19 times at the end of June 2020, sales 43% remained low key. The city witnessed over 70 percent drop in the quarterly property sales volume.

48% Developers struggling for sustenance abstained from announcing new projects and focused on disposing of their existing residential units. Barring a few project launches by Grade A developers, including Lodha 23% Developers, Godrej Housing, Hiranandani Group, Runwal Group and L&T Realty, the majority of builders deferred their expansion plans. Technology disruption took the industry by storm. From generating enquiries to e-site visits and last-mile delivery, builders massively relied on 35% technology to market their projects.

The average capital values across Mumbai, Thane and remained stable, QoQ. However, rental prices reeled under pressure due to limited supply of ready homes in the city and restriction from residential Demand Supply societies towards relocation. While home rents in Mumbai did not report any hike, YoY, the same dipped Affordable Housing in Thane by a percent in Apr-Jun 2020, as against (Within Rs 40 lakh) Apr-Jun 2019. Navi Mumbai has been the only market Mid-income Housing (Rs 40 lakh - Rs 1 crore) that managed to sail through and registered a three Luxury Housing percent hike in the yearly rentals. (Rs 1 crore and above)

* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter INSITE : Mumbai 11 DEMAND & SUPPLY NAVI DYNAMICS MUMBAI

17% The residential market in Navi Mumbai gradually gained momentum in Q1 2020-21. While April remained dented with negligible sales, May and June witnessed 29% 7% a slow rebound. Close to 300 new units were sold during 19% the quarter.

Taloja, Panvel and Kharghar recorded the maximum traction for 2 BHK units. While Taloja and Panvel remained popular for homes priced within Rs 30-50 lakh, Kharghar gained traction for units priced between Rs 85 lakh and Rs 1.10 crore. Nearly 80 percent of the conversions were in the projects nearing completion in 8-10 months. DEMAND SUPPLY Affordable Housing New launches in Navi Mumbai came to a standstill in (Within Rs 40 lakh) 74% Apr-Jun 2020. Barely three new projects were added in Mid-income Housing , Panvel and by Category C developers in (Rs 40 lakh - Rs 1 crore) Rs 25-45 lakh budget. Most of the Grade A and B builders Luxury Housing continued to defer their expansion plans. (Rs 1 crore and above) 54%

* Graph depicts demand and supply of residential inventory across By the virtue of strategic location and the availability of budget segments in the studied quarter ample residential projects, a few micro-markets such as Dronagiri, and Palm Beach remained popular among 9% home buyers. 8% 7% At the end of Apr-Jun 2020, Navi Mumbai stands with an unsold housing stock of around 25,000 units, which would need about 12 Quarters to Sell (QTS) completely. Ghansoli, 5% Panvel, and constituted about 4% 4% 70 percent of the total unsold inventory in the city. 3% 2% Average yearly rents in Navi Mumbai grew by three percent. Ulwe, and Seawoods attracted the tenant community CAPITAL 1% throughout the year. Nerul and Ulwe derive their popularity 0% 0% Nerul Panvel Taloja 0% 0% 0% from their proximity to CBD Belapur and relatively lower & RENTAL Kharghar Ghansoli 0% Ulwe Airoli Sanpada Seawoods rentals, i.e. approximately Rs 9,000 per month for a -1% -1% 1,000 sq ft apartment. -2% -2%

Capital Rental INSITE : Mumbai 13 -6% * %change represents quarterly capital movement and yearly rental movement DEMAND & SUPPLY THANE DYNAMICS AND BEYOND Amid the increasing cases of COVID-19, potential home buyers unsure of the turnout of events remained at bay 20%24% in Thane in Q1 2020-21. Barely 350 units were sold in the studied period, amounting to a 70 percent dip in 12%14% transactions, QoQ. Ghodbunder Road accounted for the 33% maximum traction in mid-sized configurations pegged at Rs 65 lakh to Rs 1 crore. Kalyan, Dombivli, Badlapur 39% and Ambernath continued to be popular among price-cautious buyers. 27% 29% The double whammy of NBFCs liquidity crisis and COVID-19 forced the developers to adopt a cautious stance towards new launches. A mere 150 units were added in Thane in 61% Apr-Jun 2020, and the majority of them were by Category C DEMAND SUPPLY 57% developers in Ambernath, Kalher Kasheli and Badlapur. Affordable Housing (Within Rs 40 lakh) Unsold inventory in Thane remained unchanged at 27,000 Mid-income Housing units in the quarter ending June 2020. The QTS to dispose (Rs 40 lakh - Rs 1 crore) of the current residential stock stands at 14. Road, Luxury Housing Ghodbunder Road, , and Shilphata held nearly (Rs 1 crore and above) 41% 43% 70 percent of the unsold stock. * Graph depicts demand and supply of residential inventory across budget segments in the studied quarter Residential projects across Patlipada along the Ghodbunder Road posted maximum enquiries from home buyers. The presence of reputed builders such as Kalpataru, Signature Global and Cosmos Group, among others, and the 4% 4% availability of RERA-registered projects continue to be the growth stimulators for these housing belts. 3% 2% 2% Average rents in Thane declined marginally, YoY. Nevertheless, Majiwada and emerged as the 1% Dombivli frontrunners and recorded a four percent hike in annual (West) Dombivli 0% rents, each. Seamless connectivity via Kapurbawadi Railway (East) 0% 0% 0% 0% 0% 0% Kasarvadavali Junction, access to high-street markets and demand-supply CAPITAL Badlapur Kalyan Manpada Ambernath Owale Patlipada (West) disequilibrium boosted the rentals in these centrally-located -1% markets. Kasarvadavali also reported a growth of three & RENTAL percent in yearly rentals due to the availability of newly- -2% -2% -2% -2% constructed homes with added amenities, and contiguity to the warehousing hub of .

-4%

Capital Rental -6% INSITE : Mumbai 15 * %change represents quarterly capital movement and yearly rental movement Bhan- dup (West)

DEMAND & SUPPLY MUMBAI 12% DYNAMICS Limited enquiries, sluggish sales and dwindling launches outlined the residential market of Mumbai in Apr-Jun 2020. Despite some developers offering discounts, the conversion rate in the city slowed down, QoQ.

The average capital prices in Mumbai reeled under pressure, and about 60 percent of the listed locales posted 23% a downward trend in the ‘ask’ rates in Apr-Jun 2020. 31% 50% The crisis posing threat to the financial stability of potential homebuyers altered their residential preferences. End- 65% users planning to buy 2 BHK units inclined towards 1 BHK configurations to cut down on their budget. Nearly 60 percent of the demand in Mulund, Dombivli, , and Andheri was noted for 1 BHK units priced within 19% Rs 70-80 lakh. DEMAND SUPPLY Ready homes in Goregaon, and Kandivali, and Affordable Housing (Within Rs 40 lakh) Southern pockets of Lower , , and Parel Mid-income Housing witnessed increased enquiries in Rs 1-2 crore and Rs 3-5 (Rs 40 lakh - Rs 1 crore) crore budget brackets, respectively. However, exorbitant Luxury Housing prices suppressed property transactions in the above areas. (Rs 1 crore and above)

* Graph depicts demand and supply of residential inventory across 8% Residential demand in Mazgaon benefitted from the budget segments in the studied quarter proximity to the Eastern Express Highway (EEH) and 7% redevelopment of old residential projects with new amenities. Boisar also ensured buoyancy owing to the development of residential townships by reputed builders, and the availability of housing stock priced within Rs 30-50 lakh. 4% 4%

Average rentals in Mumbai remained stable, YoY. , CAPITAL East and East dominated the popularity charts with 8-9 percent hike in the rental rates, YoY. While Bandra East, between the famous business district of BKC & RENTAL 1% (East) 1% Ghatkopar and , remained the prime choice of working 0% 0% 0% (East) 0% Powai 0% professionals, Ghatkopar East benefitted from its seamless Virar Kandivali Malad Andheri connectivity via Metro Line 1 and Eastern Express Highway. (East) (West) (West) (East) (West) -1% Juhu, an affluent, sea-facing upmarket in the vicinity to Santacruz, Versova and , remained attractive due Capital Rental -2% -2% to its geographical location. -3% -4% -4% -4% -5% INSITE : Mumbai 17 * %change represents quarterly capital movement and yearly rental movement -6% acres India’s No.1 Property Portal CONCLUDING NEW LAUNCHES

REMARKS 1% 2% DELHI NCR Despite developers resorting to various strategies to lure KOLKATA 5% customers such as price cuts, webinars and virtual launches, HYDERABAD residential sentiment across Mumbai remained muted in Apr-Jun 2020. The extension of the project completion timeline by three months has been a respite; however, the 26% 11% shortage of construction labour, intermittent supply of raw AHMEDABAD CHENNAI materials, increased cost of site sanitisation and the piling debts have troubled the builder community considerably. Hence, developers expect the government to roll out a fiscal stimulus package to help them in tiding over the crisis and run 11% their businesses smoothly. MUMBAI

20% BANGALORE 24% PUNE BUDGET-WISE DEMAND SUPPLY The data depicts share of new launches across metro cities in the studied quarter

5% 12% 14% 11% 18% 19% 17% 20% 14% 24% 25% 17% 29% 34% 41% 40% 43% 22% 36% 37% 29% 36% 23% 48% 41% 40% 39% 44% 25% 34% 48% Demand Supply 35% 78% Affordable Housing 48% 64% 53% 51% 57% 40% 47% 40% 34% 37% 34% Mid-income Housing 31% -5% 26% 22% 18% Luxury Housing -6%

DELHI NCR MUMBAI BANGALORE PUNE CHENNAI HYDERABAD AHMEDABAD KOLKATA

INSITE : Mumbai 19 * Graph depicts demand and supply of residential inventory across budget segments in top eight metro cities in the studied quarter acres ANNEXURES India’s No.1 Property Portal

CAPITAL VALUES - THANE CAPITAL VALUES - MUMBAI CAPITAL VALUES - MUMBAI RENTAL VALUES - MUMBAI CAPITAL VALUES - NAVI MUMBAI RENTAL VALUES - NAVI MUMBAI AND BEYOND

Locality Apr-Jun 2020 Locality Apr-Jun 2020 Locality Apr-Jun 2020 Locality Apr-Jun 2020 Locality Apr-Jun 2020 Locality Apr-Jun 2020 Panvel 13 Vartak Nagar 11710 Andheri (East) 18200 Mahalaxmi 34900 Ghatkopar (East) 46 Airoli 11280 Roadpali 12 Vasant Vihar 13080 Andheri (West) 23000 (West) 29800 Ghatkopar West 43 Belapur 11300 Sanpada 33 Vasind 3250 Bandra (East) 31800 Malad (East) 15200 Goregaon (East) 39 Dronagiri 5430 Seawoods 31 Waghbil 9800 Bandra (West) 38000 Malad (West) 16720 Goregaon (West) 42 Ghansoli 11700 Taloja 9 Bhandup (East) 15320 Mulund 16350 (East) 49 7539 Ulwe 9 Bhandup (West) 14850 (East) 4640 Jogeshwari (West) 47 Kamothe 7900 Vashi 31 Bhayander (East) 8200 Nallasopara 4750 Juhu 78 Karanjade 5880 Bhayander (West) 8100 Parel 27970 Kandivali (East) 34 Khanda Colony 7950 CAPITAL VALUES - THANE RENTAL VALUES - THANE Boisar 3080 Powai 19300 Kandivali (West) 34 Kharghar 9060 AND BEYOND AND BEYOND (East) 16900 36200 Kanjurmarg (East) 40 3900 Ambernath 4250 Ambernath 9 Borivali (West) 16900 Santacruz (East) 22000 Kanjurmarg (West) 42 Koperkhairane 11400 Anand Nagar 9700 Anand Nagar 19 Breach Candy 56500 Santacruz (West) 35500 Khar 84 Nerul 13180 Badlapur 3850 Badlapur 7 Byculla 26500 28210 (East) 34 New Panvel 6700 Balkum 10700 Balkum 24 Chandivali 17900 Vasai 5310 Kurla (West) 45 Palm Beach 19100 Bhiwandi 5000 Dhokali 24 14000 Versova 23620 Mahim (West) 67 Panvel 6030 Dhokali 10900 Dombivli (East) 13 Chembur 16900 Vikhroli (East) 20000 Malad (East) 39 Roadpali 7300 Dombivli (East) 5750 Kalwa 19 40500 Vikhroli (West) 15980 Malad (West) 39 Sanpada 14800 Dombivli (West) 6700 Kalyan (West) 14 54600 Vile Parle (East) 27960 Mulund 37 Seawoods 12710 Kalwa 9200 Kasarvadavali 20 31570 Vile Parle (West) 30000 Nallasopara 8 Shilphata 6150 Kalyan (East) 5700 Kavesar 22 13000 Virar 4990 Parel 70 Taloja 5350 Kalyan (West) 6360 Majiwada 26 Ghatkopar (East) 20360 21300 Powai 49 Ulwe 7540 Kapurbawadi 12500 Manpada 26 Ghatkopar (West) 18700 Worli 35700 Prabhadevi 88 Vashi 14900 3580 Owale 18 Goregaon (East) 17300 Santacruz (East) 54 Kasarvadavali 9100 Panch Pakhadi 29 RENTAL VALUES - MUMBAI Goregaon (West) 17480 Santacruz (West) 77 Kavesar 10080 Patlipada 25 RENTAL VALUES - NAVI MUMBAI Jogeshwari (East) 18500 Andheri (East) 47 Sewri 89 Khopat 12810 Teen Haath Naka 30 Jogeshwari (West) 16500 Andheri (West) 55 Sion (East) 42 Airoli 28 Kolshet 11530 Vartak Nagar 29 Juhu 36000 Bandra (East) 71 Vasai 13 Belapur 28 Majiwada 11310 Vasant Vihar 26 Kandivali (East) 16050 Bandra (West) 85 Versova 56 Ghansoli 26 Manpada 11890 Waghbil 23 Kandivali (West) 15450 Bhandup (East) 38 Vikhroli (East) 51 Kalamboli 13 Neral 3480 Kanjurmarg (East) 16430 Bhandup (West) 39 Vikhroli (West) 44 Kamothe 14 Owale 9030 Kanjurmarg (West) 16350 Borivali (East) 34 Vile Parle (East) 64 Kharghar 19 Panch Pakhadi 14300 Khar 37900 Borivali (West) 34 Vile Parle (West) 69 Koperkhairane 27 Patlipada 12500 Kurla (East) 15000 Chembur 44 Virar 9 Nerul 28 Teen Haath Naka 15200 Kurla (West) 16000 Dadar 78 Wadala 55 New Panvel 13 7180 Lower Parel 32100 Dahisar 27 Worli 85 Palm Beach 35 4090

*All prices are per sq ft rates *All prices are per sq ft rates INSITE : Mumbai 21 METHODOLOGY The Insite Report by 99acres.com captures the quarterly capital trends, the annual rental analysis of residential apartments and rental yield in top 10 popular micro-markets across key real estate markets – Delhi NCR, Mumbai Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand and supply of properties across varied budget segments and occupancy stages. While demand is a function of queries received, supply is based on property listings posted on D S PS 99acres.com in Apr-Jun 2020. BUY SELL RENT PROPERTY

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