October, 2017
WORLI MSOUTIH CENTRRAL, MUMOBAI MARKET O V E R V I E W
www.anarock.com
CONTENTS
Micro o Evolution of the Micro Market 1 Market o Location Mapping Overview o Connectivity & Major Growth Drivers o Social Infrastructure o Physical Infrastructure – Existing/Ongoing/Proposed
Commercial o Overview 2 Market o Rental Values Comparison – Mumbai Metropolitan Region Overview o Capital Value Trends – Worli o Key Completed Commercial Developments in the Precinct
Residential o Inventory Summary 3 Market o New Launch Supply-Unsold Inventory Dynamics – Overview Under Construction Projects o Unsold Inventory Breakup with Absorption o Price Trends o Unit Size-Ticket Price Breakup with Absorption o Graphical Representation – Key projects
Livability 4 Assessment
Why 5 Worli?
Worli I Micro Market Overview Micro Market Overview Evolution Story www.anarock.com
Worli, once known as a popular P r o p i n q u i t y a n d e a s y Due to its distinct “downtown” textile mills destination of the then accessibility to the seashore i m a g e a n d s e a m l e s s S o u t h B o m b a y, t o d a y h a s have significantly transformed connectivity to Mumbai’s CBD completely transformed into a the Realty landscape of Worli. (Bandra-Kurla Complex), Worli posh neighborhood of South When the premium residential has become the most sought- Mumbai. micro markets in South after residential destination in Mumbai were struggling for the city. Home buyers are also Located in the southern part of l a r g e - s c a l e r e s i d e n t i a l willing to pay surcharges due to Mumbai, Worli has emerged as one d e v e l o p m e n t s , d u e t o lifestyle amenities provided by of the prime residential areas in unavailability of large land the developments in this micro the last decade. This micro-market parcels, Worli emerged as a market and as the distinct is considered to be the new luxury prime residential market for “address” due to the celebrities h o u s i n g d e s t i n a t i o n f o r luxury developments as a residing in the neighborhood. industrialists, business honchos, seaside promenade.
Bandra-Worli Sea Link
Worli I Micro Market Overview Micro Market Evolution Story Overview
www.anarock.com Mumbai Central Bus Terminus
Mumbai Central Railway Junction
Chhatrapati Shivaji International Airport
Mumbai Metropolitan Region
Arabian Sea
Proposed Metro Line 3
Metro Rail Network (Proposed)
Eastern Express Highway
Eastern Freeway
Bandra-Worli Sea Link
Western Express Highway
Arterial Road Network
Rail Network
Waterbodies
Localities
Mahalakshmi race Course
Worli I Micro Market Overview Micro Market Overview Connectivity www.anarock.com
Worli is Road
Ÿ Well-connected to Western Suburbs – Bandra-Worli Sea Well-Connected Link, which originates from Khan Abdul Gaffar Khan Road in Worli, provides excellent connectivity to Bandra. to various parts Further, it merges into Western Express Highway and connects Worli to Chhatrapati Shivaji International airport and key micro markets of Western Suburbs such of Mumbai as Andheri, Goregaon, Malad, and Borivali. through a grid Ÿ Proximity to Eastern Express Highway – Worli lies in propinquity to the Eastern Express Highway, which of roads and provides excellent connectivity to the eastern suburbs as well as the metropolitan area of Thane. an established
Rail Rail Network.
Ÿ Worli is well-connected to major railway stations such as Dadar and Chinchpokli on the Central line and Mahalakshmi and Elphinstone Road on the Western line.
MAJOR GROWTH DRIVERS
Ÿ The micro market enjoys easy accessibility to the commercial establishments of South Mumbai and the Western Suburbs. Moreover, improved connectivity via Bandra-Worli sea link to BKC, which is now Mumbai’s ipso facto CBD, is also an added advantage.
Ÿ Apart from the improved physical and social infrastructure, Worli also benefits significantly from the presence of several Grade-A office spaces and retail developments. Availability of land parcels near the seashore and its distinct ‘downtown’ image has attracted several developers to this micro market.
Ÿ Considering the location advantages, Worli already has a vibrant real estate market, and the micro market may continue to command a premium over the long term. In addition, post operationalization of metro line 3 in the next 5 years or so, the micro market is likely to witnesses a further surge in capital values and rentals.
Worli I Micro Market Overview Micro Market Overview
www.anarock.com
DY Patil International School
Sacred Heart High School
Greenlawns Hilltop Hotel School
People Mobile Hospital French International School of ESIS Hospital Banking MA Podar Hospital ITC Grand Central Pre-Primary Four Seasons Podar ORT Hotel International High Street School Phoenix Mall Atria Mall Nirmala Hospital
Mumbai Central Bus Terminus
Connectivity Mumbai Central Railway Junction
Arterial Road Network Chhatrapati Shivaji International Airport
Rail Network Mumbai Metropolitan Region
Waterbodies Arabian Sea
Localities Proposed Metro Line 3
Mahalakshmi race Course Metro Rail Network (Proposed)
Hospital Eastern Express Highway
Hotel Eastern Freeway
Retails Bandra-Worli Sea Link
Western Express Highway SCHOOL School
Worli I Micro Market Overview Micro Market Overview Physical Infrastructure – Existing www.anarock.com
Name Description
Bandra-Worli Connects Bandra (Western Suburbs) to Worli in South Mumbai. This Sea Link link significantly reduces the travel time.
Western The Western Express Highway, is a 25 km long multiple-lane arterial Express road stretching from Mahim creek to Dahisar. Highway
Eastern Road The Eastern Express Highway, is a 24 km city express highway. It is a Express north-south artery of Mumbai connecting the city to the eastern Highway suburbs and the metropolitan area of Thane.
Eastern The Eastern Freeway is a 17 km long road connecting the P D'Mello Freeway Road in South Mumbai to the Eastern Express Highway at Ghatkopar.
Name Connectivity Description
Western Line Dahanu Road to The Western line consists of more than 30 stations (Mumbai Churchgate from Dahanu Road to Churchgate Railway Station. Suburban Railway Station Railway)
Rail Central line Chhatrapati Shivaji The Central line consists of more than 20 stations f (Mumbai Maharaj Terminus rom C.S.T. to Kalyan junction. It further extends Suburban (C.S.T.) to Kalyan upto Kasara and Khopoli. Railway) junction & beyond
Name Connectivity Description
Mumbai Chembur to The first phase of monorail - the 8.8 km stretch Monorail Wadala between Chembur to Wadala is operational. An Line 1 extension for Line 1 consisting of 11 stations from Wadala to Jacob Circle is also expected to be Mono Rail operational by the end of 2017 or early 2018.
Worli I Micro Market Overview Micro Market Physical Infrastructure – Ongoing Overview & Proposed www.anarock.com
Ongoing
Name Description
The metro line will connect Cuffe Parade in south to SEEPZ in the north- central with 26 underground and one Phase 1 - Line 3 at-grade station. The cost of this Mar 2021, (Colaba- corridor is estimated at INR 23,000 Under Bandra- crore. Line 3 is expected to reduce construction Phase 2 - road congestion, besides reducing the Metro Rail SEEPZ line) Dec 2021 load on the Western rail line between Bandra and Churchgate
Proposed
Name Description
The Coastal Road is a proposed 29 km freeway that would run along Mumbai's western coastline connecting Marine Coastal Road Lines in the South to Kandivli in the North. The construction work of Coastal Road may start by the end of 2017.
Metro Rail The Mumbai Trans Harbor Link (MTHL), also known as the Mumbai Trans Sewri-Nhava Sheva Trans Harbor Link, is a proposed 22 km, Harbour Link freeway grade road bridge connecting Mumbai with Navi Mumbai. Bidding for development of this link is still in progress.
Source : Mumbai Metropolitan Region Development Authority
Worli I Micro Market Overview Commercial Market Overview www.anarock.com
Worli is one of the busiest commercial hubs in Mumbai, with the presence of commercial establishments such as Shiv Sagar Estate and occupiers such as GSK Pharma, TATA, Novartis, HDFC Bank, Yes Bank, Siemens, Deloitte, etc. The micro market has emerged as one of the premium residential-cum-commercial precincts of Mumbai.
Peninsula Business Park
Dr. Annie Besant Road, the major interior road of Worli has become the cynosure of real estate developments. This locality has attracted several developers for large-scale residential and commercial development, due to its strategic location advantage and proximity to sea shore and Bandra-Worli sea link.
Commercial activity in the precinct has driven the residential demand in Worli and has significantly boosted the real estate development in and around the micro market.
Shiv Sagar Estate Indiabulls Finance Center
Worli I Micro Market Overview Commercial Market Overview
www.anarock.com Rental Values – Mumbai Metropolis
Rental values Y-o-Y Change (in %) Micro markets (INR/Sqft/month)
Bandra Kurla Complex (BKC) 230 - 320 1%
CBD 210 - 260 0%
Worli 180 - 220 -2%
Prabhadevi 170 - 210 -3%
Kalina 140 - 180 -4%
Lower parel 170 - 210 -2%
Powai 110 - 130 -4%
Goregaon 230 - 320 -4%
Andheri East 90 - 140 0%
Malad 80 - 110 1%
Navi Mumbai 70 - 110 0%
Thane 60 - 80 6%
Price Trends - Commercial Property (Capital Value)
26,500
26,000
25,500
25,000 Price in INR. 24,500
24,000 Q1 - 2016 Q2- 2016 Q3 -2016 Q4 - 2016 Q1 - 2017 Q2 -2017 Wtg. Average Price in INR/Sqft
Key Completed Commercial Projects in the Precinct
Project Name Built up Area Rental Capital Values (In Sqft) (INR/Sqft/month) (INR/Sqft)
Lodha Excelus 5,00,000 140 - 160 18,000 – 22,000
Shiv Sagar Estate 4,10,000 115 - 130 28,000 – 32,000
Peninsula Business Park 12,00,000 200 - 220 49,000 – 53,000
Indiabulls Finance Center 10,80,000 (Tower 1 & 3) 165 - 180 25,000 – 29,000
Worli I Micro Market Overview Residential Market Overview Inventory Summary of Under-Construction Projects in Worli www.anarock.com
Ÿ The residential market of Worli has around Total Units 3,600 3 , 6 0 0 u n i t s a t d i f fe re n t st a g e s o f construction, providing buyers a fairly wide range of options. Available Units 1,500
Value of unsold stock 14,000 Ÿ The worth of unsold inventory in Worli is a INR(in crores) whopping INR 14,000 crore, highest among all the residential markets of South Central Weightage Average 1,660 Size (Sqft) Mumbai, delineating the availability of big- Weightage Average ticket units in the micro market. Price (BSP – INR/Sqft) 51,000
Ÿ The micro market offers a wide range of Data Source: Anarock Research Team, as on 31st Aug 2017.
Luxury, Ultra-luxury - high rise properties to Note: Above data includes under construction projects in Worli – RERA home buyers, who are willing to invest in this registered projects only. Data has been verified with MAHA RERA Website. Above mentioned wt. avg. sizes and wt. avg. prices are on premium location. carpet area of under construction projects in the precinct.
New Launch Supply-Unsold Inventory Dynamics – Under Construction Projects
Ÿ The residential market of Worli witnessed a huge supply addition in 2013, which is an approximate 71% of the overall under 3,000 construction units. In 2013, Lodha - The Park 2,500 consisting of around 2,200 units was launched, and it made a significant difference in Worli’s 2,000 supply trend. 1,500 Units Ÿ However, the plummeting supply trend 1,000 connotes that developers are now focused on offloading existing inventory instead of infusing 500 new supply. No new project was launched in 0 2017. 2008 2011 2012 2013 2014 2015 2016 Launch Units Available Units Ÿ Out of the overall under-construction supply,
nearly 58% is already absorbed in the primary Note: The above data includes breakup of unit launches and unsold market. inventory for respective years
Worli I Micro Market Overview Residential Market Y-o-Y Unsold Inventory Breakup Overview with Absorption www.anarock.com
3,000 100 90 2,500 80 Ab 70
2,000 sorp 60
1,500 50 tion units 40 1,000 in % 30 500 20 10 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2028 Total Units Available Units Absorption in %
The Y-o-Y inventory break-up analysis depicts that the projects nearing completion possess a significant number of unsold inventory. As depicted in the above chart, there is a huge inventory available due to the projects reaching completion by 2021, as also with the proposed completion timeline of two large projects this year.
Micro Market Price Trend - Price on carpet area
51,200
51,000
sqft 50,800
50,600
50,400 e in INR/
Pric 50,200
50,000
49,800 Q1 - 2016 Q2- 2016 Q3 -2016 Q4 - 2016 Q1 - 2017 Q2 -2017
Prices on Carpet Area
There has been a marginal price appreciation during the past 2 years. Post demonetization the prices remained stagnant in Q1 2017, and have slightly picked up in Q2 2017, due to an accretion in demand.
Worli I Micro Market Overview Residential Micro Market Market Overview Unit Size-Ticket PriceOv Brervieeakupw with Absorption - Sizes in terms of www.anarock.com www.anarock.com Carpet Area e in sqft Units Siz
Ticket Price
Ÿ Out of overall under construction supply in the residential market of Worli, nearly 76% of inventory falls under the size range of 1,000 – 2,000 sqft, followed by properties above 3,000 sqft and less than 1,000 sqft, at 14% and 5%, respectively. Nearly 61% of inventory in the size range of 1,000 – 2,000 sqft is already absorbed in the primary market, which is a second preferred range in Worli in terms of absorption, delineating the high demand-supply of mid-size properties in the residential market of Worli.
Ÿ On the contrary, the fastest selling size and budget range which has recorded an approximate 89% absorption have a meager share of supply at an approximate 5%.
Worli I Micro Market Overview Residential Market Overview
www.anarock.com
Oberoi Three Sixty West
Nishika Terraces Omkar 1973 RNA Mirage
K Raheja Artesia JP Unity Tower
Lodha The Park
Palais Royale Raheja Atlantis
Indiabulls Blu Marathon NextGen Era
Runwal Reserve
Localities
Mahalakshmi race Course
Arterial Road Network Key Projects in Worli Rail Network Waterbodies
Mumbai Central Bus Terminus Proposed Metro Line 3
Mumbai Central Railway Junction Metro Rail Network (Proposed)
Chhatrapati Shivaji International Airport Eastern Express Highway
Completed Project Eastern Freeway
Under construction project Bandra-Worli Sea Link
Arabian Sea Western Express Highway
Worli I Micro Market Overview Livability Assessment
www.anarock.com
MODERATE/ HIGH/GOOD LOW/ AVERAGE NOT SO GOOD
Proximity to Airport
Proximity to BKC
Social Infrastructure
Physical Infrastructure
Night Life
Proximity to Hotel/Mall
Connectivity
Metro Connectivity
Upcoming Metro Connectivity
Proximity to Sea Shore
Quality of Life
Presence of Commercial Development
Worli I Micro Market Overview Why Worli?
www.anarock.com
Ritzy skyscrapers, sea-facing properties, excellent connectivity to Mumbai’s CBD Bandra-Kurla Complex (BKC) – Worli literally has it all in a city where transit infrastructure holds all the aces for the success of real estate. With so many merits, Worli draws the instant attention of luxury home buyers not only from the financial capital, but also from other parts of India and the world.
Worli’s residential property market has attracted several developers keen to capitalize on its upmarket charm and location advantages amidst the high-profile southern part of the city. With its unique blend of plush office complexes and high-end housing, Worli has emerged as one of the hottest residential areas in recent years and is a premium destination of choice for industrialists, business honchos, sports personalities, and celebrities.
Worli’s generous share of prominent luxury skyscraper projects over the last couple of years, have completely transformed the micro-market’s skyline. With constant real estate development and improving infrastructure, especially in terms of Metro connectivity via Line 3 (connecting Colaba- Bandra-Seepz) and the proposed Coastal Road which will provide enhanced connectivity to major micro-markets of Western Suburbs, Worli is all set to ramp up its allure as a highly popular luxury housing destination in South-Central Mumbai.
The residential real estate market of Worli offers a wide range of under construction high rise properties, nearly 1,500 in different stages of construction. In the recent years, new launch activity has been slow due to availability of huge unsold inventory. Moreover, under the strict RERA-regime, developers seem focused on offloading existing inventory by offering discounts and lucrative payment plans. Nonetheless, capital values in the micro market recorded a marginal upward trend due to a slight uptick in demand and constantly upgrading infrastructure.
Worli I Micro Market Overview
ANAROCK PROPERTY CONSULTANTS PVT LTD (Formerly Jones Lang LaSalle Residential Pvt. Ltd)
The ANAROCK Group is one India’s leading real estate services company having diversified interest across real estate value chain. The Group’s key strategic business units comprise of Residential business: broking & advisory services to clients; Investment business: debt, equity and mezzanine funding and Research & Consulting business. ANAROCK’s Investment arm has built a revolutionary business model of bulk- purchasing residential apartment inventory through a proprietary investment fund.
With a growing team of over 500 professionals, ANAROCK operates in all key property markets across India - Mumbai, Chennai, Bangalore, Gurgaon, Noida, Hyderabad, Kolkata, Pune and has an international presence in Dubai. With in-depth market information, quality advice and developer tie-ups for optimal deals, we have been serving the industry since 2011.
ANAROCK Property Consultants Private Limited (Formerly Jones Lang LaSalle Residential Pvt. Ltd.)
1002, 10th Floor, B Wing, One BKC, Plot No. C-66, G Block, Bandra Kurla Complex, Bandra East, Mumbai - 400051
This publication is the sole property of ANAROCK Property Consultants. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of ANAROCK Property Consultants. The information contained in this publication has been obtained from sources generally regarded to be reliable. However , no representation is made, or warranty is given, in respect of the accuracy of this information. W e would like to be informed of any inaccuracies so that we may correct them. ANAROCK does not accept any liability in negligence or otherwise for any loss or damage suf fered by any party resulting from reliance on this publication.