FOREWORD

PropIndex is now in its 4th year and the current issue is the 14th edition of what has been an excellent round of reporting on the real estate market in . In this long period of continuous reporting, we have gathered unmatched data, developed a very robust micro-level understanding of localities and market forces affecting real estate and brought valuable industry/expert advice to our users! PropIndex has gone from strength to strength – adding more analytics, insights and diverse views in every edition. The current edition is no different – this time, we have invited editors of Times Property to share their views on respective cities. Also, we’ve expanded the coverage of suburbs across most cities. This issue of PropIndex reflects the reality of the country’s real estate market i.e. that the industry and government need to work hard on tangible policies and processes to woo the buyers back into residential real estate markets. While there was plenty of demand, it was concentrated in properties in the affordable range as classified by the Union Budget 2014 (upto Rs 50 lakh) which recorded maximum demand at 37 per cent. This shows that end users are buying today and spending on current needs without straining their wallets. City indices remained fairly stable. The only aberrations were the Delhi City Index which recorded drop in values in the last two quarters, indicating slow uptake in the market. The Mumbai Index stabilised and rose 4 per cent in the quarter. Hyderabad dropped 2 per cent. All others recorded negligible variation. As expected, supply went up across the cities vis-à-vis the previous quarter. Clearly, developers are working on completing projects and winning the confidence of customers. A growing trend has been the rising demand for housing units priced at Rs 5 crore and above across Indian cities. In cities such as Mumbai, Delhi and Gurgaon, Rs 1-2 crore would classify as the mid-segment because of steep rise in property prices. Chennai entered the premium luxury market with a maximum demand for properties worth Rs 5-10 crore at 11 per cent. Bangalore and Hyderabad posted 8 and 9 per cent demand. With property markets fairly stagnant, premium buyers have obviously decided to take the plunge. Supply still exceeds demand but healthy growth in demand also spells good news for the industry. A lot of this demand is fuelled by those end users who wish to upgrade from luxury to premium luxury living, according to Magicbricks surveys, also translating into the Housing Sentiment Index (HSI) evolved in collaboration with IIM – Bangalore. Rental markets remained fairly stable over a six-month period. Over 50 per cent localities recorded a rise in the average rental values, thus nullifying the drop in the Apr-Jun 2014 quarter. As small investors head for stock markets, property markets need to up the ante. We’re also delighted to share with you that Magicbricks has won several awards for excellence in the last quarter – we won the “Best Property Portal” award from Naredco; the “Most Admired Real Estate Website” award from Lokmat; our Editor, E Jayashree Kurup was also adjudged “The Journalist of the Year” by CIDC. All of this provides encouragement for us to raise the bar even further. We continue to look forward to your views and feedback on the current issue of PropIndex. Do write in!

Sudhir Pai Business Head, Magicbricks.com METHODOLOGY

Magicbricks PropIndex are aggregated into their been chosen based on respective cities and their activity levels) and Magicbricks PropIndex then to the National has an individual city is a tool which Index. Weightages for report for each of these empowers property PropIndex are based on cities. While the NPI and seekers and investors the supply of properties its movements are of with detailed within the locality/city. interest to the expert information on the Based on this structure, community of bankers, movement of residential PropIndex gives a builders and investors, apartment prices and realistic picture of the PropIndex has also supply of properties in trends in price/supply taken care to explain the India. No credible across different property nuances of index property index can be a markets in each city. We movements at the function of direct values have used different locality level that would as the changes are weightages for Listed help the huge base of governed by multiple Price Monitor/Rent Magicbricks.com factors. Monitor. Therefore, read consumers. as a whole, PropIndex Magicbricks PropIndex Insights into consumer along with tables has taken this reality demand have been provided for Listed Price into account and gathered through Monitor, Rent Monitor, produced an index based analysis of search Yield Monitor and on listing of apartments information on the site. Capital Values, gives an and their capital and This helps understand excellent perspective of rental values on the the best localities by the property market website. demand, the type and performance in the configuration of units as Magicbricks has over quarter. 700,000 active properties well as the budget-wise posted by more than While listing and its preferences. values/supply provide a 1,40,000 active users in The PropIndex is the level of understanding 300 cities and 10,000 result of meticulous of the market, there are localities. Our users research at the locality meticulous data checks include owners, agents level and through to prevent aberrations and developers. detailed discussions creeping in the Index. with experts at These are based on Magicbricks.com’s Methodology statistical calculations, offline and online industry inputs and Apartment values are initiatives. based on listings on logical interpretations. The Indian real estate Magicbricks. These The National Property market is dynamic and include multi-storey Index (NPI) is indicative the PropIndex reflects apartments and single of the extent of activity those changes. Since it is units on plotted as well as price derived from a dynamic developments, referred movements across cities database, additions and to as builder floors on and localities in the deletions of localities Magicbricks.com. major cities active on happen as a function of Magicbricks.com. The The Index is structured market dynamics. in such a way that index includes the top individual properties 11 cities (these have GLOSSARY & DEFINITIONS

There is a wealth of information within these pages. For better readability, we have presented some data as tables and others as graphs. Between them, you will find how property markets have performed in the Jul-Sep 2014 quarter from different perspectives – from that of capital appreciation, from a rental/yield realisation perspective and from a supply standpoint. Demand Analysis section also explains what consumers look for.

We recommend that you evaluate the city report in its entirety and that will provide a rounded perspective of the performance of the property market within each city. Here are the details of what you will find in each of the city reports enclosed within:

1. City Property Index – This is a composite index which is a function of supply of properties as well as the average capital appreciation/drop in various localities of the city in the quarter. The city index is the weighted average of the average rate per square foot in that locality and the supply of properties from that locality. Premium localities (with higher average rate per square foot) as well as localities with higher supply of properties will have a bigger impact on the Index. For example, if the supply of properties from a premium locality drops, that locality will end up having a lower weightage in the index which in turn will push the Index downwards (and vice-versa). On the other hand, supply of properties remaining unchanged, the Index will be influenced by capital appreciation within the locality.

2. Listed Price Monitor – This metric shows the capital appreciation/drop within a locality and is calculated on the basis of movement in the “average rate per square foot” within that locality. By and large, the movement in the “average rate per square foot” reflects capital appreciation/drop. However, in a few select cases, we have observed that the average rate per square foot moves due to a change in the mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher per square foot rate, changes over the quarter). In these few circumstances, the Listed Price Monitor will, in turn, reflect this input. Such changes have been explained in the text of the City Reports.

3. Rent Monitor – This reflects the rental appreciation/drop within a locality. It is calculated on the basis of movement in the “average rent per square foot” within that locality. By and large, the movement in the “average rent per square foot” reflects rental appreciation/drop. However, in a few select cases, we have observed that the average rent per square foot moves due to a change in the mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher per square foot rent, changes over the quarter). In these few circumstances, the Rent Monitor will, in turn, reflect this input. Such changes have been explained in the text of the City Reports.

4. Yield Meter – Yield is the annual rate of return earned on property. The Yield Meter depicts the gross yield percentages across various localities. Gross yield is a ratio of average annual rental value to the average capital value of the property.

5. Capital Value Tables (given in Annexures) – This shows the actual range of prices within which properties were available in each locality in the quarter. Prices are shown in Rupees per square foot basis, these are the prevailing rates for properties in each locality.

6. Demand Analysis – This analysis of consumer demand is based on searches and requirements that users have performed on Magicbricks.com. The top localities by demand gives an insight into consumer peferences. The demand data has been used to arrive at various aspects of consumer requirements including Budget-wise analysis, Property type analysis and BHK configuration analysis. This section also provides a comparison between demand and supply in the Apr-Jun 2014 and Jul-Sep 2014 quarters.

7. Realty News – Property market performance is also dependent on drivers outside the purview of buying and selling. There are broadly four key drivers that determine the prospects of real estate – infrastructure such as water and power, transport links creating new growth corridors, policy such as rental laws, property tax, etc and return on investment. PropIndex also focuses on news bytes that impact future prospects of real estate in the city. NOTES VOL 4, ISSUE 2; JUL-SEP, FY 2014-15 propindex.magicbricks.com

NATIONAL PROPERTY INDEX (NPI) JUL-SEP 2014

n Availability of properties on rent registered a drop across India except in Ghaziabad n Demand for residential houses witnessed a rise across

Source: Magicbricks.com cities. On the other hand, JUL-SEP 2014 The new government is expected demand for to undertake several reforms that In the Jul-Sep 2014 quarter, the will affect the economy and real apartments has National Property Index recorded estate market. The recently shown a small no change, unlike the previous cleared final guidelines for setting drop quarter. This was reflected in the up and regulating the Real Estate respective City Indices, where Investment Trusts (REITs) and n Bangalore, Pune 9 out of 12 cities witnessed minus Infrastructure Investment Trusts 2 to plus 1 per cent change. In the (InvITs) are a step in this and Kolkata offer current quarter, supply has gone direction. Opening up of the the maximum up across cities and the average Sovereign and Pension funds into options in capital values remained subdued, real estate are expected to provide indicating a slow real estate. properties worth a new source of funding to the Rs 30-50 lakh NPI is a weighted average of cash-crunched and debt-laden supply and values across cities in developers. India. Mumbai City Index In addition to it increase in limit witnessed the maximum activity. recorded a maximum increase by of affordable housing loans to The average price change in the 4 per cent followed by Chennai at individuals from upto Rs 25 lakh city ranges between minus 8 per 3 per cent. On the other hand, to upto Rs 50 lakh in metros and cent to plus 6 per cent for sale. In Delhi City Index recorded from upto Rs 15 lakh loans to upto the rental market, the change in maximum drop of 3 per cent. Rs 40 lakh in other centers the average values range between Ahmedabad, , expected to boost affordable minus 2 to plus 8 per cent. Ghaziabad, Noida and Pune noted housing and push sales a small rise of 1 per cent and significantly in the long-term IN THIS REPORT: Kolkata City Index remained In this edition of the PropIndex, National Property Index...... 1 unchanged. On the other hand, we have introduced Coimbatore as Bangalore and Gurgaon witnessed an independent city. Coimbatore...... 4 a drop of 1 per cent each and Saravanampatti, Ganapathi, Annexures...... 8 Hyderabad City Index recorded a Trichy Road and RS Puram drop of 2 per cent. Policy Perspective...... 10 propindex.magicbricks.com 02 VOL4, ISSUE 2; JUL-SEP, FY 2014-15

continued to drop across localities. Despite there being no government in Delhi and slow real estate activity, the city recorded robust demand for properties worth upto Rs 1 crore. Huge supply deficit was recorded S

o quarter-over-quarter in this u r c e segment, with supply 50 per cent :

M a

g of demand. i c b r i c

k In the last six months, Gurgaon s . c o

m residential market witnessed stable trends with no significant change in supply and price. Almost equal number of localities recorded rise or drop in values. This resulted in no change in the Listed Price Monitor and a nominal drop of 1 per cent in the Gurgaon City Index. in price or rental values. A clear NATIONAL PROPERTY INDEX Over 75 per cent of localities shift in buyer preference from recorded a rise in capital values. l Availability of a number of plots to apartments continued to units across the city has gone be witnessed in the quarter. While up between 4-17 per cent. apartments remained in over- Preferred Cities - Sale Hyderabad and Bangalore in supply for the second quarter in a south, Pune in west and Noida row, plots remained marginally Locality Rank and Gurgaon in north recorded under-supplied. Q2 Q1 the maximum rise in stock Mumbai 1 1 Rise in over 60 per cent tracked Bangalore 2 2 l Properties worth Rs 30-50 lakh localities resulted in a rise in the Pune 3 3 recorded the maximum demand average capital values, pushing up at 28 per cent followed by the Chennai City Index as well as New Delhi 4 7 properties in the budget range the Listed Price Monitor. Similar Hyderabad 5 8 of Rs 50-70 lakh at 21 per cent trend was recorded in the rental Kolkata 6 6 market with over 65 per cent Chennai 7 4 l Delhi, Mumbai and Gurgaon localities recording a rise of recorded almost 20 per cent Gurgaon 8 5 1-10 per cent in the average rental demand for properties worth Ghaziabad 9 9 values in the city. Rs 2 crore and above Noida 10 10 Coimbatore, one of the fast The Ahmedabad City Index rose Note: Q2 Jul-Sep 2014, Q1 Apr-Jun 2014 developing cities, primarily due to by 1 per cent in the Jul-Sep 2014 Source: Magicbricks.com a burgeoning business class quarter, unlike the Apr-Jun 2014 retained a steady cautious growth quarter. After a consistent drop in Preferred Cities - Rent observed in most cities of the the City Index value in the last South. The Coimbatore City Index Locality Rank three quarters, the index recorded rose by 1 per cent, while the Listed Q2 Q1 a marginal rise of 1 per cent. Price Monitor rose by 4 per cent. Mumbai 1 1 Increase in the average capital Increase in the average capital Bangalore 2 3 values in a majority of localities values and a small rise in supply Pune 3 2 in the city helped the Listed Price kept up the City Index value and Delhi 4 4 Monitor to record a rise of New the Listed Price Monitor. 2 per cent in the Chennai 5 5 Jul-Sep 2014 quarter. The Delhi City Index continued to Hyderabad 6 6 witness a negative trend with a Gurgaon 7 7 The Bangalore City Index drop of 3 per cent, in line with the Kolkata 8 9 continued to remain steady, Apr-Jun 2014 quarter. The Listed Ghaziabad 9 8 dropping by just 1 per cent during Price Monitor remained the Jul-Sep 2014 quarter. Noida 10 10 unchanged as compared to the Bangalore city reported steady Note: Q2 Jul-Sep 2014, Q1 Apr-Jun 2014 previous quarter, as capital values growth with no dramatic change Source: Magicbricks.com VOL4, ISSUE 2; JUL-SEP, FY 2014-15 03 propindex.magicbricks.com

National - Consumer Budget Preference

30% 28%

25% 21% 20% 16% 16% 15% 10% 10% 7%

5% 2% 0% Upto Rs 20 Lakh Rs 20-30 Lakh Rs 30-50 Lakh Rs 50-70 Lakh Rs 70-100 Lakh Rs 1-2 Crore Rs 2 Crore & Above Source: Magicbricks.com

A minimum rise of 1 per cent was other sectors noted a rise or a drop TOP YIELD GROSSERS seen in localities having maximum in the average capital values supply such as Indirapuram, between minus 4 to plus 4 per cent. Gross yield is a ratio of average annual Vaishali, Vasundhara and This arrested the Noida City Index rental value to the average capital value Raj Nagar Extension. This and kept the Listed Price Monitor of the property. Given below are the top yield-grossing localities in each city. arrested the growth of the unchanged. Close to 60 per cent Ghaziabad City Index. localities recorded a change in the Locality Gross Yield average rental values, ranging Bangalore, Marathahalli 5.11% The Hyderabad City Index between minus 6 to plus 5 per cent. remained steady in the Kolkata, Banshdroni 4.71% Jul-Sep 2014 quarter, with a drop of The Mumbai City Index rose by Hyderabad, Gachibowli 4.48% 2 per cent, as compared to the 4 per cent in the Jul-Sep 2014 Ahmedabad, Prahlad Nagar Extn 4.29% 1 per cent drop in the Apr-Jun 2014 quarter. This was in contrast to the Delhi, Uttam Nagar 3.74% quarter. The Listed Price Monitor previous quarter where it Chennai, Padur 3.70% recorded no change. Unlike capital remained unchanged. The Listed values, rental values also showed a Price Monitor rose by 3 per cent Ghaziabad, Shakti Khand 3 3.48% positive trend. Over 60 per cent of during the same period unlike the Noida, Sector-92 3.43% the tracked localities recorded a previous quarter where it Pune, Chakan 3.36% rise between 0-10 per cent in the remained unchanged. Of the total Mumbai, Parel 3.34% average rental values. localities in the city, 70 per cent Gurgaon, Sushant Lok 2.75% recorded a rise between S

In the last six months, Kolkata o u

0-5 per cent in the average capital r c real estate market recorded almost e :

values. This pushed up the Listed CAPITAL GAINS M a

no change in the Listed Price g i

Price Monitor and the City Index c b

Monitor and the Kolkata City r i value in this quarter. The table given below indicates maximum c k s

Index value at 0 and 1 per cent, . increase in capital values in each city. c o respectively. Active supply in the Pune remained one of the most m city went up by 7 per cent from the consistent real estate markets in Locality % Change previous quarter. Rajarhat the country. In the last six months, Kolkata, Ballygunge Circular Area 10.25% witnessed the maximum increase the market remained stable with a Bangalore, Bannerghatta Road 10.00% in stock, followed by Garia. Almost marginal increase of 1 per cent in equal number of localities the Pune City Index value and Ahmedabad, Thaltej 9.29% recorded a rise or drop in the 2 per cent in the Listed Price Ghaziabad, Dlf Dilshad Extn 9.23% average capital values, keeping the Monitor. The city recorded over Chennai, Vadapalani 7.69% Listed Price Monitor and the 10 per cent increase in the active Mumbai, Worli 6.99% City Index within a range of stock available for sale. A drop of 0-1 per cent. 2-4 per cent was recorded in the Pune, Bibwewadi 6.83% lease market. Supply trend showed Hyderabad, Hafeezpet 5.80% Noida witnessed an increase in maximum number of properties Delhi, Rohini Sector-13 4.36% the availability of properties for for sale within the average price of sale by over 10 per cent in the last Rs 5,000-7,000 per sq ft at Noida, Sector-70 3.83% three months. Except Sector 44, all 49 per cent. Gurgaon, South City II 3.53% COIMBATORE propindex.magicbricks.com 04 VOL4, ISSUE 2; JUL-SEP, FY 2014-15

PROPINDEX - COIMBATORE Editorial On a revival mode One of the fastest growing cities in , Coimbatore has been driven by end-user demand. The buzz is back in Coimbatore’s real estate, says Rajesh B Lund, chairman, Credai, Coimbatore. International industries have upped the lifestyle quotient, a major attraction for neighbouring municipalities, says Sanjay Chugh, head–residential services (Chennai) JLL India. Source: Magicbricks.com “Apartment inventories have increased Coimbatore, one of the fast developing cities, is gaining and developers are launching projects with smaller sizes and less units. Villa popularity primarily due to a burgeoning business class. It projects are also in the pipeline.” retained a steady cautious growth observed in most cities of the IT, engineering, textiles and South in the Jul-Sep 2014 quarter . The City Index rose by 1 manufacturing have boosted the real per cent and the Listed Price Monitor by 4 per cent. estate. “National players, who acquired land for residential development have not gone ahead, others have put their land banks for sale. Small scale Key Takeaways projects by local developers continue to witness good demand,” says N l Increase in average capital l Premium properties worth Hariharan, head commercial agency, values and a marginal rise in Rs 1 crore and Above recorded south, Cushman & Wakefield. supply kept up the City Index significant demand with The apartment culture is slowly gaining value and the Listed Price 9 per cent. However, supply was ground, but residents prefer the Monitor at 20 per cent, creating an traditional independent housing. “Sold over-supply by 11 per cent in the out apartments are witnessing low l Saravanampatti, Ganapathi, Jul-Sep 2014 quarter occupancy,” says Hariharan. Presently, Trichy Road and RS Puram were the city has a pile-up of inventory. the most active localities l Almost 60 per cent demand was Local developers continue to dominate recorded for 2BHK category, the Coimbatore market. l The average price change for sale while supply fell short by ranged between minus 8 per cent Coimbatore has mostly small and 16 per cent. Supply deficit was medium developers so the options are to plus 6 per cent. The average also recorded in small size units values in the rental market good, Lund says. Concerns about high (1BHK) by a marginal gap of cement and labour costs could push ranged between minus 3 per cent up prices. 2 to plus 8 per cent l Units of 3BHK were the second Easy access to and faster approvals of l The gross rental returns on most preferred category with home loans has boosted second home investment was between 30 per cent of the total demand, buyer demand. Banks are also offering 2.48-3.60 per cent. loans for DTCP plot purchases and however, supply outstripped construction, says Chugh. A revival in Saravanampatti recorded the demand by 7 per cent highest rental returns owing to the growth of the textile industry and IT- ITES sector could give a further boost low capital price and healthy l Supply for large size units of to the housing market. monthly rental values 4BHK and Above recorded an over-supply, where demand was The year 2015 is expected to see l Properties worth Rs 40-70 lakh merely 3 per cent and supply many project launches in the SBD, and an infusion of luxury projects in the recorded maximum demand at 15 per cent 40 per cent, followed by 35 per CBD. New policy reforms and push for cent demand for properties in the l Unlike other cities, independent/ development and growth is likely to improve market conditions in the short Rs 20-40 lakh range residential houses were the most to medium term. preferred housing category with l Vadavalli, Saravanampatti, over 50 per cent demand across [email protected] Avinashi Road, and the housing category. Plots were Editor, accounted for over the second most preferred Times Property, Coimbatore 40 per cent of demand for the category at 29 per cent budget range of Rs 20-70 lakh VOL4, ISSUE 2; JUL-SEP, FY 2014-15 05 propindex.magicbricks.com COIMBATORE

LISTED PRICE MONITOR RENT MONITOR S o u r c e :

M a g i c b r i c k s . c o m

4% Source: Magicbricks.com l Almost 60 per cent of the micro-markets tracked in l Rental values in Coimbatore remained mostly Coimbatore reported a change in values steady with notable increase in some areas l Saibaba Colony, Ganapathi, Peelamedu and l Ganapathi topped the list of the top ten preferred Saravanampatti reported a noticeable increase. localities by recording an 8 per cent increase in While the former two recorded a 6 per cent increase, rental values in the Jul-Sep 2014 quarter. Industry the latter two saw a moderate 4 per cent increase watchers attribute this to the access to better infrastructure and the livability quotient of the area l Areas that reported moderate increase in Coimbatore include Singanallur and l Ramanathapuram reported a significant drop in Ramanathapuram, which are enroute to several rental values in the current quarter. Reasons business districts and have good connectivity attributed to this fall include the presence of large number of home owners residing in the area, with l The biggest drop of 8 per cent in values was few open to the rental option recorded in Vadavalli, followed by Trichi Road which dropped by 4 per cent l Localities like Avinashi Road and Peelamedu witnessed almost no change in rental values YIELD METER

Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Avinashi Road 11.00 4,850 2.72%

S Peelamedu 10.25 4,950 2.48% o u r

c Ramanathapuram 9.25 4,375 2.54% e :

M Saibaba Colony 12.25 5,300 2.77% a g i c

b Ganapathi 9.75 4,175 2.80% r i c k s

. Vadavalli 7.25 3,500 2.49% c o m Saravanampatti 10.50 3,500 3.60%

l A rise of 8 per cent in rental values resulted i n the second highest yield in Ganapathi. With the highest rental value (Rs 12.25 per sq ft per month) among the localities tracked, l The Magicbricks Yield Meter recorded rental returns on Saibaba Colony also registered a healthy investment in the range of 2.48-3.60 per cent in the rental return of 2.77 per cent Jul-Sep 2014 quarter l Avinashi Road recorded a yield of 2.72 per cent l Saravanampatti, with low capital values of Rs 3,500 on the back of high rental values and with per sq ft and relatively high rental values at Rs 10.5 affordable capital values in the Jul-Sep 2014 per sq ft per month, clocked the highest returns in the quarter city in the current quarter COIMBATORE propindex.magicbricks.com 06 VOL4, ISSUE 2; JUL-SEP, FY 2014-15

PREFERRED LOCALITIES

SALE RENT

Locality Rank Capital %age Locality Rank Rental %age Q2 Q1 Values change Q2 Q1 Values change Saravanampatti 1 1 3300 to 3900 4% Saravanampatti 1 3 9500 to 12000 10% Vadavalli 2 2 3250 to 3950 -8% Peelamedu 2 1 9500 to 11500 -2% Thudiyalur 3 3 3400 to 4300 -3% Avinashi Road 3 - 10000 to 13000 0% Avinashi Road 4 7 4300 to 5800 -2% Saibaba Colony 4 2 11000 to 14000 2% Peelamedu 5 6 4550 to 5700 4% Ramanathapuram 5 7 8500 to 10500 -5% 6 4 3150 to 3650 - Vadavalli 6 4 6500 to 8500 -10% Saibaba Colony 7 5 4750 to 6300 6% RS Puram 7 5 11500 to 13000 - RS Puram 8 8 5500 to 7450 10% Ganapathy 8 6 9000 to 11000 - Ganapathy 9 10 4000 to 4450 - Singanallur 9 8 9000 to 10000 -10% Singanallur 10 - 3850 to 4650 3% Thudiyalur 10 9 7000 to 8000 0% Note: Q2 Jul-Sep 2014, Q1 Apr-Jun 2014 Source: Magicbricks.com Note: Q2 Jul-Sep 2014, Q1 Apr-Jun 2014 Source: Magicbricks.com l The top three localities on the list of the top ten l Saravanampatti moved up two spots on the list of preferred locations for sale in Coimbatore remained preferred localities for rent to settle at number one. unchanged from the Apr-Jun 2014 quarter The locality noted a rise of 10 per cent l Saravanampatti continued to be the most preferred l Peelamedu dropped to number two as compared to residential destination, largely owing to the the top slot it held in the previous quarter affordable values (Rs 3,300-3,900 per sq ft) l Avinashi Road was a new entrant on the list of the l Vadavalli and Thudiyalur occupied the second and preferred localities for rent at number three. the third spot on the list. Both witnessed a drop of Saibaba Colony was at number four, dropping two 3-8 per cent in capital values during the positions from the Apr-Jun 2014 quarter Jul-Sep 2014 quarter l Ramanathapuram improved its standings in the list. l Avinashi Road moved up three positions to settle at It moved from the seventh to the fifth spot in the number four while Peelamedu improved its standing Jul-Sep 2014 quarter slightly to settle at number five l Vadavalli, RS Puram and Ganapathy dropped two l Saibaba Colony dropped to number seven from the slots each from the previous quarter to settle at fifth position it held in the Apr-Jun 2014 quarter. number six, seven and eight, respectively RS Puram held its position on number eight l Singanallur witnessed a drop of 10 per cent in l Kovaipudur at number six and Singanallur at rental values during the Jul-Sep 2014 quarter. The number ten, were the new entrants in the list during locality dropped to number nine as opposed to the the Jul-Sep 2014 quarter eighth position in the previous quarter

l Affordable properties priced Home in your Budget Upto Rs 20 lakh were found in Sulur, Madukkarai, Peria Upto Rs 20 Lakh Sulur, Madukkarai, Peria Nayagan Palayam, Annur Nayagan Palayam and Annur

l Properties in the most Rs 20-40 Lakh Saravanampatti, Thudiyalur, Thondamuthur Road demanded range of Rs 40-70 lakh were concentrated in Saravanampatti, Vadavalli, Rs 40-70 Lakh Saravanampatti, Vadavalli, Kovaipudur, Ganapathy Kovaipudur and Ganapathy

Rs 70-100 Lakh Nehru Nagar, , Trichy Road, RS Puram l Properties over Rs 1 crore were in central localities such as Saibaba Colony, Avinashi Road Rs 1 Crore & Above Saibaba Colony, Vadavalli, Avinashi Road, RS Puram and RS Puram Source: Magicbricks.com VOL4, ISSUE 2; JUL-SEP, FY 2014-15 07 propindex.magicbricks.com COIMBATORE

DEMAND - SUPPLY ANALYSIS The city displayed a clear preference for spacious homes. This was reflected in the huge demand (52%) recorded for residential houses. Plotted developments were also popular and were preferred more than apartments. Supply in the categories was also likewise aligned. An over-supply was noted for homes with larger configurations (3 and 4BHK and Above). While the combined demand in the two categories stood at 33 per cent, supply was recorded at 52 per cent. The 2BHK category continued to be most supplied and demanded. Over-supply of larger units was also visible in the supply figures of different budget ranges. Properties priced above Rs 70 lakh were over-supplied as compared to the existing demand in the segment. Budget wise Analysis Budget wise Analysis - City Level l The Rs 40-70 lakh budget range DEMAND SUPPLY was preferred in the city with (Apr-Jun 2014) (Apr-Jun 2014) 40 per cent buyers showing 50 50 (Jul-Sep 2014) (Jul-Sep 2014) interest. Properties priced in this 39 40 ) ) 40 40 S range were also the most supplied % % o ( ( 35 u e e

32 r g g 30 c

e with 28 per cent availability a a t t

28 :

n n 30 30 M e e c c 23 22 a r r

20 g e e

19 i l Properties in the Rs 20-40 lakh c p p

20 20 16 b n n r i i 14 i

13 13 13 c s s range were the second most 11 k e e 10 s r r 9 . u u 10 8 10 c o g g preferred with 32 per cent demand. i i

5 m F F An over-supply of 11 per cent was 0 0 <20 20-40 40-70 70-100 100 & <20 20-40 40-70 70-100 100 & noted for both affordable above above (Upto Rs 20 lakh) and high end Figures in Rs lakh Figures in Rs lakh (Rs 100 lakh and Above) properties

Property wise Analysis Property wise Analysis - City Level l As opposed to all the other cities DEMAND SUPPLY tracked, residential houses were 80 80 the most preferred property type in (Apr-Jun 2014) (Apr-Jun 2014) Coimbatore. The segment recorded (Jul-Sep 2014) (Jul-Sep 2014) ) ) S % % a demand of more than 50 per cent ( ( o e e 60 54 60 u g g r

52 c a a while supply stood at 44 per cent in t t 46 e n n :

44 e e M c c the Jul-Sep 2014 quarter r r a e e g p p i

40 40 c

34 b n n i i 31 r

29 i s s 28 23 c l Residential plots also saw a healthy k e e r r 22 s u u . c g g 19 i i demand of 29 per cent. Supply in 18 o F F 20 20 m the category led demand by 5 per cent. Apartments were the 0 0 Apartment Residential House Residential Plot Apartment Residential House Residential Plot least preferred category with less than 20 per cent demand

BHK wise Analysis - City Level BHK Configuration - City Level l With nearly 60 per cent buyer DEMAND SUPPLY demand, the 2BHK category was 80 80 the most preferred in the city. (Apr-Jun 2014) (Apr-Jun 2014) However, supply lagged demand by (Jul-Sep 2014) (Jul-Sep 2014) ) 60 )

% 59 % more than 15 per cent. It also S ( ( e e

60 60 o g g 53 u a a r dropped by 10 per cent from the t t c n n e e e 43 :

c c M previous quarter r r e e a p p 40 40 37 g

i n n 33 c i i

30 30 b s s r l The 3BHK segment saw a demand i e e c r r k u u s g g .

i i of 30 per cent while supply led c F F

20 20 o 15 m demand by 7 per cent. Over-supply 6 8 6 8 4 3 5 of 12 per cent was noted for the 0 0 1BHK 2BHK 3BHK 4BHK & 1BHK 2BHK 3BHK 4BHK & 4BHK and Above category in the above above Jul-Sep 2014 quarter ANNExURES VOL4, ISSUE 2; JUL-SEP, FY 2014-15 09 propindex.magicbricks.com COIMBATORE

CAPITAL VALUES – LOCALITY WISE COIMBATORE Average Listed Residential Apartment Prices

Locality Capital Values Locality Capital Values (Rs/Sq feet) (Rs/Sq feet)

Avinashi Road 4300 to 5800 Saravanampatti 3300 to 3900 Ganapathy 4000 to 4450 Selvapuram 3450 to 3800 GV Residency 4650 to 5150 Singanallur 3850 to 4650 Peelamedu 4550 to 5700 5500 to 7000 RS Puram 5500 to 7450 Thudiyalur 3400 to 4300 Race Course 9000 to 11100 Trichy Road 4000 to 4950 Ramanathapuram 4050 to 4950 Vadavalli 3250 to 3950 Saibaba Colony 4750 to 6300

Source: Magicbricks.com POLICY PERSPECTIVE propindex.magicbricks.com VOL4, ISSUE 2; JUL-SEP, FY 2014-15 10

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DELHI NOIDA DDA relaxes conversion norms Nod to 10% circle rate hike in Noida In a major relief to property owners in the city, DDA has New circle rates in Noida and Greater Noida have come into further liberalised conversion norms. As per the new rules, force from August 1, 2014 with the district administration even properties without a sanctioned building plan can be approving a 10 per cent hike in the residential category for converted from leasehold to freehold. Earlier, DDA considered registration of plots. Commercial properties saw a only those properties for conversion which had a sanctioned 2 per cent hike, with the exception of Sectors 18 and 38A, building plan. Those without a sanctioned building plan will where a 17 per cent hike has been approved. For institutional have to submit an affidavit stating that a sanctioned building properties, the circle rates increased by 10 per cent. There are plan is not available, a copy of the building plan—as five categories of residential sectors in Noida. The circle rates per building byelaws—from a registered architect and a copy in these sectors range from Rs 35,000-86,000. In the flats of the house tax assessment order or electricity connection category, circle rates are evaluated as per the services order. In case documents submitted by the property owner are provided by the developer in a residential society. found incorrect, then DDA can cancel the conveyance deed n The Times of India, Delhi/NCR without any notice. n The Times of India, Delhi/NCR Noida plans a double-decker elevated road In a bid to reduce travel time between Delhi and Ghaziabad, Steep 20% hike in circle rates for Delhi properties the Noida Authority wants to build a double-decker elevated At a time when the real estate market is in a slump, Delhi road from Sector 63 towards NH-24 and has sought an NOC (no government has notified a revised circle rate regime that is objection certificate) from the National Highways Authority of 20 per cent higher than the existing rate structure across the India (NHAI). The starting point of the double-decker elevated municipal valuation colony categorisation from A to H. Circle road will be at Chijarsi village in Sector 63. It will circle over rates, the minimum valuation at which a property can be NH-24 and provide exit and entry points from Delhi, registered, have also been revised upwards for apartments. Ghaziabad, Bulandsahar and Meerut. Officials said that they The rise in circle rates directly impacts the stamp duty, which expect the elevated road to be built at a cost of Rs 700 crore. will pinch the pockets of buyers ultimately and further push Once in place, the project will connect to the under- down the buyers’ sentiments in the Delhi realty market. construction Faridabad-Noida-Ghaziabad (FNG) Expressway. n Magicbricks Bureau n Magicbricks.com Bureau

GURGAON GHAZIABAD MCG clears Rs 20 crore infrastructure projects Rs 16 crore infra projects for Ghaziabad Municipal Corporation of Gurgaon clears big ticket Ghaziabad Municipal Corporation will undertake infrastructure projects. The finance and contract committee infrastructure projects worth Rs 16.09 crore in the city, funds headed by the mayor cleared development projects worth over for which will be made available by the state’s 13th finance Rs 20 crore. According to the mayor, Vimal Yadav, most of this commission. Projects include a state-of-the-art plant in the amount will be spent on constructing bus queue shelters, city to convert polythene waste into diesel products, to be set community centres, roads, sewer lines and water lines in up at a cost of around Rs 2.4 crore. It will be the first of its various parts of the city. The authority has already allotted kind in UP, said officials. The projects also include works tenders for 26 projects. The works include constructing two pertaining to water purification and supply, sewage disposal, slip roads near the Atul Kataria Chowk and eight bus queue waste collection and disposal. Waste generated in the city will shelters. The chowk witnesses a lot of traffic as this route is be disposed in accordance with the system set up through this frequently used to reach the old city. Once these slip roads are project, till a permanent solid waste management plan is made, it will ease traffic to a large extent. implemented in Ghaziabad. n The Times of India, Delhi/NCR n The Times of India, Delhi/NCR

Unique IDS to track house tax payments in Gurgaon GDA launched Madhuban Bapudham Scheme 2014 Soon property owners in the city will get a unique ID and In the last quarter, Ghaziabad Development Authority (GDA) password each to keep track of the property tax paid by them. launched two flat schemes; the first scheme of 643 leftover The scheme, conceptualised by MCG, will also help the flats in Siddharth Vihar Yojna, Ghaziabad and the second corporation to keep tabs on the amount of property tax scheme is launched by the Ghaziabad Development Authority generated, officials said. During a routine exercise, in Madhuban Bapudham & Indraprastha Awasiya Yojna. authorities found that around Rs 70 crore of property tax There are a total of 1120 flats available, 96 MIG in GDA collected was unaccounted for. Thus, in order to bring in Madhuban Bapudham flat scheme 2014 and 1024 EWS flats in transparency and to maintain records, the MCG has taken this Indraprastha Awasiya Yojna. The tentative cost of a MIG flat initiative. This facility is likely to be rolled out soon. The is Rs 19.40-24.30 lakh and Rs 5.85-6.67 lakh for an EWS flat. For authority is also planning to make a payment gateway so that this, GDA has decided to receive applications for all future owners can pay tax through the MCG website itself. housing schemes through the online mode. n The Times of India, Delhi/NCR n Magicbricks.com Bureau VOL4, ISSUE 2; JUL-SEP, FY 2014-15 propindex.magicbricks.com POLICY PERSPECTIVE 11

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MUMBAI AHMEDABAD More FSI for Mumbai real estate before elections Ahmedabad to see infra up-gradation The state government in Maharashtra has been allotting more AMC has decided that road re-surfacing projects in the city FSI to real estate projects. They have cleared a hike in FSI for will begin soon. The chairman of the road and building re-development of slums along Mumbai’s airport land, for all department, Kantibhai Patel, said that the AMC will take up commercial buildings proposed in the notified airport area, re-surfacing of the roads on priority basis. The department for exhibition and convention centres and for re-development has cleared the plan to lay drainage lines as well, including of Navi Mumbai’s old buildings and Thane’s slums. Rules storm water drainage in the new west zone. In addition, the have also been altered to allow more incentives to developers committee has cleared a proposal for storm water drainage in taking up cluster re-development schemes in South Mumbai. Ghatlodiya and Chandlodiya. The AMC has also approved The government has taken off Chembur’s heritage tag to seven road re-surfacing tenders. Among these is one for the make way for more high-rises. Also, Chavan has sanctioned 2 km road in Chandkheda. The re-surfacing of the road changes in inclusive housing norms so as to exempt connecting Chanakyapuri to SG Road has got the green light. developers from the mandatory provision of reserving a n The Times of India, Delhi/NCR percent of their projects for low-income groups. n The Times of India, Mumbai Gujarat signs three pacts with China A high-level delegation from China that accompanied Government take steps to streamline land deals President Xi Jinping to Ahmedabad signed three Memoranda Land disputes are common in a fast-growing economy but of Understanding (MoUs) with India in the presence of Prime Maharashtra government has been able to bring clarity over Minister Narendra Modi. The three pacts, signed within hours property and tenancy rights by strengthening revenue of Xi's arrival, will focus on boosting trade and investment administration. The state government held special camps to between the two countries. The agreements include one issue various certificates such as domicile, income, caste and between China Development Bank and Industrial Extension senior citizens certificates. Commenting on this, the state Bureau of Gujarat government for developing industrial chief minister Prithviraj Chavan said, “In order to do away parks in the state to facilitate more Chinese investments. with the uncertainty and delay in carrying out measurement Chinese investors will set up units in the industrial park. This of land, E-Mojni an online land measurement system has been will boost employment in the city, thus expected to impact the implemented across nearly 300 talukas in the state.” real estate market. n The Times of India, Mumbai n Magicbricks.com Bureau

PUNE KOLKATA Rs 18 crore water plan for Hinjewadi gets state's nod Several pacts signed during Mamata's Singapore visit The state government has approved a project worth Rs 17.86 Three major agreements were signed during West Bengal crore for augmenting water supply to Hinjewadi. The decision Chief Minister Mamata Banerjee's visit to Singapore. The comes a month after residents of the area staged a protest meeting was aimed at attracting investments for the state. The demonstration against the inadequate water supply by the Singapore-based GIC-invested PE fund and city-based realtor Gram Panchayat. As per sources, about 40,000 residents will Hiland Group signed an agreement worth about Rs 200 crore benefit from the project, which is expected to be completed by in the Calcutta Riverside Development project. The project is December next year. The main source of water will be the near the metropolis. Another pact was also signed for a food Kasarsai dam, about 11km from the village. The government park, Axsys Technologies and Compass Energy Pte Ltd of has asked the Maharashtra Jeevan Pradhikaran, the zilla Singapore, which entered into a pact for solutions in ship parishad and the village panchayat to complete the project building and oil and gas exploration. This is expected to within the set time. generate jobs and is likely to impact demand for housing. n The Times of India, Pune n The Times of India, Delhi/NCR PMC to identify quarries to dump construction debris ‘Smart’ New Town to grow vertically With construction work in the city having picked up over the The government plans to develop smart cities and townships years, along with renovations of flats and other properties, across the state with high-density vertical buildings and debris is being dumped recklessly. Thus, the Pune Municipal adequate green area. The New Town Kolkata Development Corporation (PMC) will reserve quarries for dumping Authority (NKDA) has already started following the model for construction debris while identifying the land-filling process. Rajarhat New Town. An NKDA official said they are trying to Activists have often stressed that if PMC wants to check showcase New Town as the Singapore of Kolkata. The state further degradation of water bodies, land, public spaces and government has already come up with a new urban policy that green areas in the city, it has to look for immediate solutions relaxes Floor Area Ratio (FAR) to make way for buildings with to re-cycle and re-use construction and demolition (C&D) larger space. According to the policy, 15 per cent additional waste. Activists have repeatedly brought it to the notice of the FAR will be allowed for mass housing, IT complexes and mega civic body that rivers and nullahs are choking because of commercial housing complexes. unbridled dumping by developers. n Magicbricks.com Bureau n Magicbricks.com Bureau POLICY PERSPECTIVE propindex.magicbricks.com VOL4, ISSUE 2; JUL-SEP, FY 2014-15 12

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CHENNAI BANGALORE Roads in Chennai may be relaid in concrete in 2 years Tech solution to end fraud land deals in Karnataka Almost all roads in the city, including arterial stretches such The number of unauthorised layouts and fraud property as Poonamallee High Road and bus route roads in areas like transactions has shot up alarmingly in the state, particularly Nungambakkam and Kodambakkam, could be re-laid with in the rural areas. Thus, the government has integrated the concrete in two years if things go according to the software of two departments to avoid fraud transactions. corporation's plan. The project that will involve replacing Middlemen trying to commit fraud will now have to hit the black-topped roads with concrete over a total of 441km is wall at the sub-registrar’s office. Kaveri (Karnataka Valuation expected to cost around Rs 1,600 crore. Although the monsoons and e-Registration) software of Karnataka Stamps and do not have a major impact on the Chennai real estate market Registration department has been integrated with ‘E-Swathu’ on the lines of Mumbai or Pune, but the initiative is looked property software of the Urban Local Bodies (ULB) attached to upon to avoid the water logging woes during monsoons. the Panchayat Raj and rural development department. This n The Times of India will provide information to sub-registrars about properties listed in the ULBs to verify. Soon you can park, shop at Chennai metro stations n The Times of India Commuters will very soon be able to drive into Alandur Metro Station, park and shop at a two-floor 1.18 lakh sq ft complex at State government makes buying farmland easier the back of the station before boarding a metro train. In less Karnataka government has made life a lot easier for investors than a year, Chennai Metro Rail Ltd (CMRL) plans to turn five by doing away with the need of getting farmland converted for elevated stations into commercial hubs where people in the industrial use after a project is approved by the government. neighbourhood can converge for an evening of shopping, The agriculture land, where an investor has proposed a movies and dining out. With six months to go for project, is deemed converted once it is cleared at the highest commissioning of the Koyambedu-Alandur Elevated Line, level. This will open up the flood-gates for good industrial CMRL plans to build a two to nine-floor buildings to rent or development. A committee chaired by the chief minister lease to set up malls, retail stores and other establishments at clears investment proposals above Rs 50 crore, those below Alandur, Ekkattuthangal, Arumbakkam and CMBT stations. that are approved by a single-window committee, headed by Additional floors will also be built at Ashok Nagar station. the chief secretary. The relief is applicable to educational, n The Times of India housing and green-house projects as well as places of worship. n Economic Times

HYDERABAD COIMBATORE Nod to single window system in Hyderabad Kovai infra gets Rs 2,000 crore boost The Chief Minister of Telangana K Chandrasekhar Rao In August, the state government announced several projects recently announced the single window clearance system to worth over Rs 2,000 crore for infrastructure development in give all clearances for real estate projects. This is expected to Coimbatore city. The projects include 2,912 houses for the have a direct impact on not only the developers but also an homeless to be built at a cost of Rs 443.6 crore, underground equally important bearing on buyers as well. As delay in a drainage and storm water drains in extended areas of the city project increases the cost by 30-40 per cent, which wires down corporation at an estimated cost of Rs 1,555 crore and a to the pockets of buyers at the end, the single window Rs 125 crore new integrated bus terminus. These projects are clearance will streamline the process of approvals for real in continuation of various infrastructure schemes estate projects which is expected to lead to faster delivery. He undertaken in the past three years keeping in mind the also announced the withdrawal of Non-Agricultural Land growing population of Coimbatore. Healthcare and sanitation Assessment (NALA) tax imposed on the real estate firms. are also the thrust areas in the latest announcement. n The Times of India n The Times of India KCR announces world-class roads, corridors CC seeks Rs 100 cr to boost drinking water supply The state government, recently announced world-class roads The supply of drinking water in the city is likely to get a boost up to a length of 1,000 km at an investment of Rs 10,000 crore, if the state government clears the Rs 100 crore proposal to two corridors connecting the four corners of Hyderabad and construct separate water tunnels for the Pilloor II scheme. four lakh LED street lights in Hyderabad. The roads to a The Coimbatore Corporation (CC) council passed a resolution length of 500 km would be completed in two years and the to seek state government funds worth Rs 100 crore to make the remaining 50 per cent would be done in another two years, an Pilloor II scheme more efficient. They plan to construct two east-west four-lane corridor (skyway) would also be developed separate tunnels, one through the Periyakombai Mountains between Vanasthalipuram and Ramachandrapuram and a through which the water would pass into the treatment plant corridor will be developed between north and south. The and the other through the Kattan Hill where the treated water Outer Ring Road would also be developed in addition to the would flow into the pipeline. This will enhance livability existing one, with satellite townships and specialised clusters across the city and is thus likely to impact the real estate like pharma, sports, health and cinema cities. demand in the area. n Magicbricks.com Bureau n Magicbricks.com Bureau NOTES DELHI propindex.magicbricks.com VOL4, ISSUE 2; JUL-SEP, FY 2014-15 VOL4, ISSUE 2; JUL-SEP, FY 2014-15 propindex.magicbricks.com DELHI propindex.magicbricks.com VOL4, ISSUE 2; JUL-SEP, FY 2014-15

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Every effort has been made to make this Index as complete and as accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this book. It shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this book. The information/data in this book is subject to change from time to time due to market condition.