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FOREWORD

PropIndex is now in its second year! We are delighted to bring to you the fifth edition of PropIndex. Our previous anniversary issue was very well received and we thank you for the generous comments and feedback for this issue.

It has been our endeavour to add more information and better depth to every edition and we hope that such improvements help to make PropIndex more relevant and enabled to capture market trends. In this issue, we have added – (a) “Realty News”, which are stories potential for impact on markets in the future (b) trend of “rankings of top localities” based on changing user demand and (c) improved Demand Analytics with City aggregates. You will continue to find our regular indices here – the National/City Property Index (NPI/CPI), Listed Price Monitor, Rent Monitor, Yield Monitor, Buyer Analytics and Capital Values.

As always, we hope this issue of PropIndex helps you to understand the market better and take an informed and intelligent real estate decision. We value the time spent by various banks/financial institutions, consultants, developers and policy makers to review the findings in the PropIndex. We welcome valuable suggestions from our readers to enrich the quality of our report. Do write in!

Sudhir Pai Business Head, MagicBricks.com [email protected] METHODOLOGY

MagicBricks such a way that individual cities (these have been PropIndex properties are aggregated chosen based on their into respective cities and activity levels) and has an MagicBricks.com then to the National Index. individual city report for PropIndex is a tool which Weightages for PropIndex each of these cities. While empowers property are based on the supply of the NPI and its movements seekers and investors with properties within the are of interest to the detailed information on locality/city. Based on this expert community of the movement of structure, PropIndex gives bankers, builders and residential apartment a realistic picture of investors, the PropIndex prices and supply of trends in price/supply has also taken care to properties in . No across different property explain the nuances of credible property index markets in each city. We index movements at the can be a function of direct have used different locality level that would values as the changes are weightages for Listed Price help the huge base of governed by multiple Monitor/Rent Monitor. MagicBricks.com factors. Therefore, read as a whole, consumers. PropIndex along with MagicBricks.com Insights into consumer tables provided for Listed PropIndex has taken this demand have been Price Monitor, Rent reality into account and gathered through analysis Monitor, Yield Monitor and produced an index based of search information on Capital Values, gives an on listing of apartments the site. This helps excellent perspective of and their capital and understand the best the property market rental values on the localities by demand, the performance in the website. type and configuration of quarter. MagicBricks.com has over units as well as the budget- 400,000 active properties While listing and its wise preferences. values/supply provide a posted by more than The PropIndex is the result level of understanding 1,00,000 active users in 300 of meticulous research at into the market, there are cities and 3,500 localities. the locality level and meticulous data checks to Our users include owners, through detailed prevent aberrations agents and developers. discussions with experts at creeping into the Index. MagicBricks.com’s offline These are based on Methodology and online initiatives. statistical calculations, Apartment values are industry inputs and logical The Indian real estate based on listings on interpretations. market is dynamic and the MagicBricks.com PropIndex reflects those The National Property PropIndex. These include changes. Since it is derived Index (NPI) is indicative of multistorey apartments from a dynamic database, the extent of activity as and single units on plotted additions and deletions of well as price movements developments, referred to localities happen as a across cities and localities as builder floors on function of market in the major cities active MagicBricks.com. dynamics. on MagicBricks.com. The The Index is structured in index includes the top 11 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 Apr-Jun 2012 quarter from many different perspectives – from that of capital appreciation, from a rental/yield realisation perspective and from the stand of supply of properties. Also understand what consumers want in the Demand Analysis section.

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 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 – From this issue, we have changed the name of “Price Monitor’’ to “Listed Price Monitor’’ to reflect the metric more clearly – this metric reflects the movement of “listed prices”on MagicBricks.com over a period of time. This metric shows the capital appreciation/drop within a locality & 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/ drops. 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/drops. However, in a few selected 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.

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. From this issue onwards, PropIndex focuses on news bytes that impact future prospects of real estate in the city. VOL 2, ISSUE 1; APR-JUN, FY 2012-13

NATIONAL PROPERTY INDEX (NPI) APR-JUN 2012

n National Property Index rose by 4 per cent. n Affordable localities were found to be more in demand in comparison to premium areas across different cities. n Increasing demand for 1 BHK units registered across multiple cities. n Metro connectivity contributed to increase in property rates across cities. APR-JUN 2012 Pune and Bangalore remained the major contributors to the NPI. The National Property Index significantly to the index values of The MagicBricks.com PropIndex (NPI) went up by over 4 per cent in that city. the Apr-Jun 2012 quarter is based on dynamic data mined compared to Jan-Mar 2012 quarter. from the portal to show the levels This Index is reflective of trends of supply and the type of property across multistorey and single The NPI is a weighted average of listed in each locality. These are floor apartments (commonly supply and prices across 11 cities cleaned with complex algorithms known as builder floors). in India. to remove outliers and arrive at the index values at locality, city Out of 11 cities in the Apartment IN THIS REPORT: Index, nine have seen a rise. The and national levels. The Index is cities include Delhi, Gurgaon, impacted by the number and the National Property Index...... 1 Noida-Ghaziabad, Mumbai, Pune, average price of properties in Ahmedabad, Kolkata, , each locality and the locality’s Delhi...... 4 weightage in the city. Hyderabad and Bangalore. Gurgaon...... 9 Ahmedabad topped the City Index This is based on its contribution Noida & Ghaziabad...... 15 chart by registering 10 per cent to the city’s property databank. increase followed by Delhi, The listings on the website are by Mumbai...... 23 Kolkata and Noida with 6 per cent end users and market players and increase each. Ghaziabad, Pune the Index is based on a mix of Pune...... 29 and Mumbai witnessed 4-5 per newly developing and established Ahmedabad...... 34 cent rise followed by Chennai and localities. Hyderabad (1-3 per cent). Kolkata...... ,...... 39 New and old constructions also Bangalore showed stable index Chennai...... 44 values. Gurgaon witnessed a drop form part of the listings. The of 4 per cent in the Apr-Jun 2012 composite index value of a city Hyderabad...... 50 quarter. draws from the changing index values of different localities. Bangalore...... 56 The NPI is a weighted average of Localities that were more active Annexures...... 65 city indices. Mumbai, Gurgaon, compared to others can contribute 2 VOL2, ISSUE 1; APR-JUN, FY 2012-13

NATIONAL PROPERTY INDEX witnessed in premium localities. the transactional values of multistorey apartments in the There are certain common l Cities continued to witness city remained stable. threads across cities: good demand for properties in and around commercial The Bangalore Index value l Affordable localities saw a centers, for outright purchase remained same as the Jan-Mar better rise in values as as well as rentals. 2012 quarter, which was 112. The compared to premium localities trend in the Bangalore realty in cities such as Mumbai, During Apr-Jun 2012 quarter, the market this quarter tilted towards Ahmadabad, Pune and Kolkata. Ahmedabad Index shot up by 10 areas offering affordable property per cent, the maximum among all options, while the premium l Areas that witnessed good road the cities. There has been an localities or areas having more infrastructure, Metro overall rise in quoted values while premium residential options saw connectivity and better facilities saw a rise in values. l Increased values were registered across IT-driven localities in cities such as Bangalore, Pune, Kolkata and Chennai for both outright purchase and lease. l Even though the demand for traditional unit-size properties in the 2 and 3BHK categories remained stable across the cities, a growing consumer preference towards smaller 1BHK units was recorded across cities such as Ahmedabad, Bangalore, Chennai, Pune, Mumbai and Hyderabad. Supply of larger 3BHK units outstripped demand across these cities. l Multistorey apartments remained the most sought-after property type across the cities. Demand for larger unit-size properties was mainly VOL2, ISSUE 1; APR-JUN, FY 2012-13 3

a dip. A dip in capital values was values owing to the prevailing recorded in certain localities such water problems. The major TOP YIELD GROSSERS as Sarjapur Road, Electronic City contributors to the slight increase Rental yield is a factor of the changes in and Hebbal, largely because in the city index were Kukatpally rental values locality-wise vis-à-vis the affordable peripheries of premium and Madhapur, which scored on changes in capital values. Given below localities registered a surge in the proximity to IT hubs and are the top yield-grossing localities in listing, which prevented the city affordable prices. each city index from any rise. The Kolkata Index value rose by Locality Gross yield The Chennai Index rose by 3 per 6 per cent. Almost all the localities Bangalore, Electronic City 6.30% cent. More than 60 per cent of the recorded a hike in the average localities witnessed marginal rise capital values in Apr-Jun 2012 Kolkata, EM Bypass 5.30% in average capital values, which quarter, which impacted the city Chennai, OMR 4.88% explains the slight increase in the index positively. This is mainly Hyderabad, Miyapur 4.32% city index. The absence of overt owing to increased Metro speculation has also ensured that connectivity. In certain localities Ahmedabad, SG Highway 4.07% the developer has moved pricing of Metro work is still in progress, but Gurgaon, Sushant Lok-I 3.58% homes in a stable and gradual it has already escalated values. manner. Mumbai, Bandra East 3.46% The Noida Index value was up by Pune, Wanowrie 3.33% The Delhi Index rose by 6 per cent. 6 per cent in the Apr-Jun 2012 Unlike the previous quarter, the quarter. Metro connectivity, Ghaziabad, Indirapuram 3.13% rise in values this quarter has only planned expansion through well- Noida, Sector-62 3.03% been restricted to certain pockets. developed infrastructure, presence The upward trend was attributed of multinationals and competitive Delhi, Vasundhara Enclave 2.36% to certain localities such as prices compared to Delhi drove a Vasundhara Enclave, Uttam Nagar, steady demand for all types of Chittaranjan Park, Sarita Vihar residential formats in Noida. and Mehrauli. An improvement in Sectors 45, 76, 78 and 93 in Noida the job market is expected to bring and some pockets on the Greater CAPITAL GAINS back the real estate market in Noida Expressway (Sectors 137 and Delhi to the earlier levels of 93A) saw a significant increase of The table given below indicates growth. 9-13 per cent in capital values of maximum increase in capital values multistorey apartments, positively in each city The Ghaziabad Index rose by impacting the city index. 5 per cent. Localities such as Locality % Change Crossings Republik and Bhopura The Pune Index value rose by Kolkata, EM Bypass 16% saw a significant rise in capital 4 per cent. There was consistent values which pushed the city growth in the average capital Pune, Wagholi 15% index upwards. While Crossings values across the city. Localities Gurgaon, Dwarka Expressway 14% Republik registered growing buyer such as Wagholi in the East and interest due to the land acquisition Balewadi in the West saw the Ghaziabad, Crossings Republik 13% row in Noida Extension, Bhopura maximum increase in capital Mumbai, Bandra West 12% attracted investors with limited values. Improved infrastructure budget, owing to the affordable and a number of new projects Bangalore, Airport Road 11% prices and the expected entry of impacted values positively. the Metro in the area. Hyderabad, Madhapur 11% The Mumbai Index rose by 5 per The Gurgaon Index witnessed a cent. Overall increase in capital Noida, Sector-78 11% dip in values, registering a fall of values in more than 90 per cent of Delhi, Uttam Nagar 10% 4 per cent in the Apr-Jun 2012 the localities pushed the capital quarter. Even though the capital index upwards. Localities across Ahmedabad, Bodakdev 6% values for multistorey apartments Western suburbs such as witnessed a hike in over 90 per Goregaon East and West, Andheri, Chennai, Velacheri 4% cent localities, a decrease in the Mira Road in the north, and Virar number of active listings in in Thane saw a steady rise in certain localities has tilted the city values. Affordable residential index negatively. options saw many takers which pushed the average capital values The Hyderabad Index value rose in Mira Road and Virar. by 1 per cent. Various localities witnessed falling average capital CHENNAI 44 VOL2, ISSUE 1; APR-JUN, FY 2012-13

PROPINDEX - CHENNAI QUICK STATS

n Yield Meter: Yield ranges between 2.79% to 4.88% n Capital Values rose in 69% localities n Rental Value rose in 70% localities n PropIndex rose from 108 to 112 n Listed Price Monitor dropped from 114 to 112

and this fact did a lot to sustain consistent absorption throughout the Jan-March 2012 quarter as well.

CITY PROPERTY INDEX highest yield, primarily due to The absence of overt speculation increase in average rental values has also ensured that developers The Chennai Property Index over capital values. This resulted have moved pricing of homes in a increased by 3 per cent in the in higher return on investment on stable and gradual manner. Apr-Jun 2012 quarter compared to properties along the OMR, Unnatural spiking has therefore a drop that was witnessed in the whereas, been successfully kept at bay. Jan-Mar 2012 quarter. The NPI registered the lowest yield in the Chennai has been an end-user rose by 4 per cent during the same quarter. market. “Because of this, huge Apr-Jun 2012 quarter. fluctuation was never witnessed The Chennai Listed Price Monitor LISTED PRICE MONITOR here unlike in Mumbai, Delhi and Bangalore,” says showed a drop of 2 per cent Chennai’s residential property S Ramakrishnan, CEO, compared to Jan-Mar quarter, market saw a steady growth in Marg PropertTies. which registered an increase terms of capital values in of 4 per cent. Apr-June 2012. The city’s So, what are the factors behind Localities such as OMR (Old residential property market is this growth? The growth can be Mahabalipuram Road ), predominantly end-user driven, attributed to the huge interest Palikarnai and registered a drop in capital values LISTED PRICE MONITOR as well as active listings, tilting the Price Monitor. The MagicBricks.com Yield Meter increased from 2.61-4.65 per cent in Jan-Mar 2012 quarter to 2.79-4.88 per cent in Apr-Jun 2012 quarter. OMR registered the

-2%

Price Monitor indicates 2% decrease in the average sale price VOL2, ISSUE 1; APR-JUN, FY 2012-13 45 CHENNAI

RENT MONITOR APR-JUN 2012

Rent Price Percentage Change n Chennai Property Index increased by 3 per cent in Apr-Jun 2012 quarter n Localities in South and contributed to the price rise in Apr-June quarter n Except and Thoraipakkam, all localities saw an increase in rental values

development in the area is its huge contribution to the IT industry. The major chunk of IT employees from this neighbourhood. Their exposure to modern developments abroad and demand for quality residential space has pushed up the real estate development in this area. “ is well-connected through MRTS, bus, rail, metro and other private transport and is accessible from different parts of the city and suburbs,” says from end users, launch of new the future. Prices have increased Abhijith Kumar of the projects and rise in infrastructure in this locality."With the MRTS Utsav Group. activities around peripheral Extension, the growth in locations. It was noticed that the is expected to go “Velachery sees transactions from growth was concentrated around higher. Buyers or investors who young IT professionals from areas which saw major purchase apartments here can neighbouring areas as well as manufacturing and IT also enjoy facilities like from the NRI and HNI market, development. Localities in supermarts, temples, schools, ensuring a balanced demand in South and Central Chennai have hospitals and entertainment both affordable and premium largely contributed to this growth centres – all within the area. housing categories,” informs in the city. Kishore Sen, Konnect Looking at Velachery, the locality Constructions. The current The localities in has undergone a sea change in the capital values of apartments here such as , Velacheri, last few years. It has seen a rise of vary from Rs 5,400-6,750 per sq ft Madipakkam, Perungudi, 4 per cent in capital values of depending upon location and , Nungambakkam, multistorey apartments in the facilities. Urappakkam and Valasaravakam Apr-June quarter, against the rise witnessed a rise of 1-5 per cent in of 1 per cent in the previous “With the opening of the capital values in the Apr-June quarter. The locality has Highway, which leads 2012 quarter. These areas enjoy developed into a residential hub to the International Airport at the advantage of good today, with the availability of , Velachery has connectivity through Grand good schools, malls and become the new gateway to South Southern Trunk (GST) Road, entertainment hubs in the Chennai and is fast emerging as access to IT companies and neighbourhood. Provision of one of the most sought-after proximity to OMR. Localities basic facilities such as drinking hotspots of the city,” says from Central and water and power make it a G Ramanarayanan, a real estate such as and Ambattur also favourable residential hub. One of consultant in the locality. saw appreciation in values the main reasons why Velachery between 1-5 per cent. is witnessing a huge facelift as Medavakkam saw 3 per cent rise compared to other older localities, in capital values due to its Local realtor Sudha of Realty Soft is its proximity to the OMR. location. Medavakkam, is fast says, "Madipakkam is the best developing into a residential spot place for real estate investors for Another reason for the due to its good connectivity and CHENNAI 46 VOL2, ISSUE 1; APR-JUN, FY 2012-13

close proximity to the IT corridor, and Medavakkam. The capital rental values in the Apr-Jun 2012 OMR and the suburbs of values of apartments in this quarter as compared to the last , Madipakkam, locality starts from quarter was noticed. Areas such , Velachery and Rs 3,200 per sq ft. Porur and as T Nagar and Porur witnessed . Nungambakkam, located close to the maximum rise in rental IT parks, too attracted values, showing 9-10 per cent rise. Perungudi, which is the IT hub in professionals working nearby. South Chennai, is also growing on “T Nagar saw an increase in the back of infrastructure Localities such as OMR, demand for residential units as development and an increased , and Thiruvanmiyur rents here are cheaper compared demand for multistorey saw a dip between 1-3 per cent in to surrounding localities. This apartments. The economic drivers capital values. Stating the reasons raised demand for rented of the locality are construction for the decrease in values, apartments here. However, there activities and IT companies in Krishna Murthy from REBI CBD was a shortfall in supply due to close proximity. Marketing, says, “OMR is facing shortage of space for multistorey an oversupply of 10-15 per cent. A apartments. This further Local realtor, Anirudh of Nest number of projects are ready and increased rental values in the Management Company, says, buyers have options to choose locality,” says Joseph Washington “Perungudi is preferred by from. This in turn is forcing of SJ Consultancy. software professionals who mostly developers and builders to reduce drive the demand for multistorey the prices.” In Porur, demand for rented apartments here over other housing was mostly driven by property types. The demand is Capital values saw a dip in people working in the outskirts of mostly for apartments with a good Thiruvanmiyur area in the Chennai. “Porur is a bustling resale value.” Apr-Jun 2012. This dip, say commercial area with IT parks, realtors, was mostly due to the hospitals, shopping malls, Urapakkam too saw an upward increased influx of the fishermen residential complexes, industrial trend, owing to its accessibility community to the land allotted to and commercial establishments. and connectivity to the National them by the government to Further, it offers good Highway and affordable rates. W S safeguard them from natural connectivity to the NH4 and GST Habib, MD, Ramky Wavoo calamities. Road along with bus service to Developers Pvt. Ltd, says, “In the other locations in the city. These extended city limits, Urapakkam Pallikaranni saw a decrease of 5 factors pushed rental values in has become a gateway to Chennai. per cent in the capital values of the locality,” says Rupendre The locality has already gained multistorey apartments in the Kumar of Remax Aperion Realty momentum with big ticket real Apr-Jun 2012 quarter. Industry estate developments surrounding sources say that negative N Hariharan, Office Director, established industries and publicity during the fire in the Chennai, Cushman & Wakefield, educational institutions to feed dumping yard in June might have says, “There has been an increase the residential demands.” trigerred low interest in the area. in migration of people to the southern part of the city, owing to Some of the localities in the RENT MONITOR which demand has been growing neighbouring areas that but supply is limited. There is a witnessed a rise in demand Barring Perungudi and good supply on GST and beyond include , Tambaram, Thoraipakkam, an increase in Perungudi on OMR.” YIELD METER

n OMR continues to top the yield meter quarter-on-quarter with over 4.5%.

n High base price of property in comparison to rental returns in Nungambakkam resulted in lowest gross return on investment with 2.79%. VOL2, ISSUE 1; APR-JUN, FY 2012-13 47 CHENNAI

w The availability of services and 2012 quarter ranged between Ne infrastructure in the city Rs 7-51 per sq ft, per month. Top ten localities - Chennai contributes to the constant rise in Sholinganallur, an IT corridor in rental rates in the city. Suburban the South of Chennai, saw a rise Locality Rank areas such as OMR, GST Road, of 7 per cent in rents. An increase Q1 Q4 and Oragadam have witnessed a in demand from the IT sector Velachery 1 1 rise in rental rates over the fuelled rental demand in this Adyar 2 3 years owing to the booming IT locality. and manufacturing industries OMR 3 2 in the area. Rising income levels Sholinganallur offers good Medavakkam 4 5 connectivity to ECR on the is another factor that lends to the Porur 5 10 increase in rental rates. Eastern side and Velachery Main Road on the Western side. It also Thiruvanmiyur 6 4 “Development of suburbs and the hosts reputed educational Madipakkam 7 9 rising income levels of the middle institutions and hospitals, super Tambaram 8 - class have led to an increase in markets, cinema complexes, 9 7 rental rates of most localities in restaurants and malls. Nagar 10 6 the city. People are willing to Anna spend more as long as the locality In Velachery, the rental values Note: Q1 Apr-Jun 2012, Q4 Jan-Mar 2012 is safe and has a range of increased by 3 per cent in the Thoraipakkam witnessed a amenities. The average rent Apr-Jun quarter. This can be decrease in rental values of varies based on many factors such attributed to enhanced demand multistorey apartments in the as land prices and electricity for rental housing and improved quarter. “Both these localities are rates,” says Kumar of Remax office leasing, which has opened in industrial regions. Industrial Aperion Realty numerous employment opportunities in and around pollution has led to the decrease According to the data on the city. in the rental values in these MagicBricks.com, the rents in localities,” says Partha Sarthy of Sholinganallur during Apr-Jun Areas such as Perungudi and Sai Placements.

w Ne R E A L T Y N E W S

Infrastructure and commercial activities in areas such as Valandur- and ORR is expected to impact property markets. Policy issues include steep increase in guideline values and lack of piped water supply in areas which can directly impact real estate development -Kelambakkam Road sees major development Hike in guideline values hit housing sector The 18-km stretch from the IT corridor in Kelambakkam to the At a time when land values started stabilizing in and around Grand Southern Trunk (GST) road junction at Vandalur is Chennai, the government has increased the guideline bristling with activity. Over 15 developers have ongoing values for land registration purposes by hiking the values from 60 residential projects on either side of the Vandalur-Kelambakkam per cent to 300 per cent. According to official sources, though the road. These range from affordable housing, plotted development, revenue for the two month period (April and May) was up by Rs luxury apartments to villas. The presence of Chettinad Hospital, 100 crore, the volume of transaction has come down drastically. VIT University and engineering colleges have pushed the demand Industry sources say that city area transactions fell through due for housing and nudged others to shift to suburbs. Aerens Gold to reluctance on the part of buyers to absorb the hike in stamp Souk is under construction near Vandalur on GST road. The road duty. In vibrant commercial areas like Whites road, the guideline widening work on GST road is long overdue and will go a long value soared to Rs 16,000 above the market value, say property way in improving housing development in and around the area. consultants. The worst hit in the current scenario is the n Times of India, Chennai affordable housing segment. n The Times of India, Chennai ORR project to fuel growth in Maraimalainagar The Chennai Outer Ring Road (ORR)•project, a 30 km-long six- Water crisis hits Alandur residents lane road connecting Vandalur with Nemilicheri under People in many city areas are complaining of an acute water construction is expected to fuel more growth in Maraimalainagar, shortage. Residents of NSK Road near Vanuvampet in Alandur a suburb located 40 km away from Chennai. The suburb has been said the extended summer has resulted in many bore wells in the on the development radar for quite sometime now, both in terms area going dry, while the absence of a Metro water pipeline has of residential and industrial growth. The setting up of Mahindra compounded the problem. Recently two water tanks were World City, Infosys and the Ford manufacturing planthas pushed provided for the residents on NSK Road as a temporary relief. Maraimalainagar as a realty destination. The area is well- Areas in Pazhavanthangal, and Thalakanancheri connected by rail networks and by roads (Trichy-M a d u r a i-K a were also facing a severe water shortage. nya k u m a r i Highway). n The Times of India, Chennai n The Times of India, Chennai To read full story and more news go to www.content.magicbricks.com CHENNAI 48 VOL2, ISSUE 1; APR-JUN, FY 2012-13

BUYER DEMAND ANALYSIS

Budget Wise Analysis Budget wise Analysis - Property Type Analysis During the Apr-Jun 2012 quarter, Central Chennai The city witnessed a maximum 70 per cent of the buyer interest 70 Demand% demand for multistorey Supply% ) 60 was generated by property worth % apartments during the April-June ( e

g 50 44 up to Rs 60 lakh. According to a 2012 quarter. A healthy user t n e

MagicBricks.com data, the c 40 interest was also visible for r 32 e p demand diminished for property 26 residential houses and plots with n 30 i 23

s

e 16 17 worth above Rs 1 crore, even r 20 15 26 and 20 per cent demand u 10 g i 9 though the supply remained F 10 8 respectively. relatively high. 0 <30 30-60 60-100 100-200 200 & Property wise Analysis - City Level The Western regions witnessed above maximum demand for apartments Figures in lakh 100 New

below the Rs 30 lakh mark, while ) Demand% % highest demand for units in the Rs ( 80 Supply% all other zones recorded the e g a

30-60 lakh bracket. Supply t n e

c 60 outstripped demand for units r e 47 Budget wise Analysis - City Level p

n

below the Rs 30 lakh mark i 38 s

New e 40 in all the zones, except the Central r 70 u 26 25 g i 21 20 Demand% zone. Availability remained low F ) 60 Supply% 20 16 % 50 ( compared to demand across 7 e

g 50 a t the city for units in the Rs 30-60 n 39 0 e

c 40 r 31 Single Multistorey Residential Residential

e lakh bracket. p

floor House Plot

n 30 i 20 s

e 17 r 20 15 u

g Budget wise Analysis - i 9 9 An oversupply was observed for F 7 10 4 West Chennai builder floor units, wherein the 0 70 64 Demand% supply was found to be thrice the <30 30-60 60-100 100-200 200 & Supply% above ) 60

% demand. Overall, there was a ( e

Figures in lakh g 50 46 a shortfall in demand of residential t

n 39 e

c 40

r plots owing to an increase in the e p Budget wise Analysis - 26

n 30 guideline values since April 2012. i

South Chennai s e r 20 u

70 Demand% g 10 i 8 The increased guideline values Supply% F 10 ) 60 55 3 2 2 1 have pushed the transaction cost % (

e 0

g 50 45 <30 30-60 60-100 100-200 200 & of residential plots by more than a t

n above

e 200 per cent. The buyers have thus

c 40 r

e Figures in lakh p displayed a reduced interest in 27

n 30 i

20 s these plots in the last few months, e 17 r 20 15 u Moderate demand was observed g i 9 leading to an oversupply in the F 10 7 4 5 for units in the Rs 60-100 lakh zone. 0 bracket. The supply marginally <30 30-60 60-100 100-200 200 & above exceeded demand in the Central High demand for multistorey Figures in lakh and Northern zones, while it fell apartments was recorded across short by 2 per cent in the South Budget wise Analysis - and the West. Property wise Analysis - North Chennai South Chennai A good demand and supply ratio 60 70 Demand% Demand% Supply% was observed in the Rs 1-2 crore ) ) 60 50 47 Supply% % % ( ( 49 bracket with adequate availability e e 41 g g 50 a a t t across zones. n n 40 e e 37 c c 40 r r 31 e e p p

Supply of property worth above 30 n n 30 24 i

i 25

23

s 22 s e e 19

Rs 2 crore was found to be double r r 20 14 15

u 17 u 20 g g i i F F 8 8 8 the existing demand in the 10 4 Central localities. All the other 10 7 0 <30 30-60 60-100 100-200 200 & zones exhibited low demand and above 0 supply ratios for the same. Single Multistorey Residential Residential Figures in lakh floor House Plot VOL2, ISSUE 1; APR-JUN, FY 2012-13 49 CHENNAI

Property wise Analysis - other zones, the supply of these BHK Configuration - North Chennai units fell short by 2-5 per cent. Central Chennai 60 This is owing to a high demand 4 BHK <1 Demand% for multistorey apartments in 5 Demand% ) 50 Supply% Supply% % ( gated societies with all basic e 41

g 17

a 3 BHK t 40 n 35 facilities, especially water and 37 e

c 31 r

e power backups. p

30

n 25 i

22 58

s 20 20

e 2 BHK

r The supply for builder floor units 54

u 20 g i

F exceeded the demand in all the 10 6 zones with the maximum supply 25 flowing in from the Central areas 1 BHK 4 0 0 10 20 30 40 50 60 70 Single Multistorey Residential Residential followed by the North. floor House Plot Figures in percentage (%) various zones while supply fell BHK Configuration Analysis BHK Configuration - short by 3-6 per cent throughout West Chennai More than 80 per cent of buyers the city. The maximum user 3 BHK 19 showed an inclination towards 33 Demand% interest for residential houses was 1 and 2BHK units in the city. Supply% generated from the Northern

2 BHK 59 Property wise Analysis - BHK Configuration - City Level 64 Central Chennai 4 BHK <1 New 60 56 3 50 Demand% Demand%

) 50 Supply% Supply% 22 % (

e 17 1 BHK 3

g 3 BHK

a 36 t 40 0 10 20 30 40 50 60 70 80 n e c

r 30 Figures in percentage (%) e

p 27 30 n

i 59

s 2 BHK 56 e

r While supply fell short by almost

u 20 15 g i

F 10 20 per cent for 1BHK apartments, 10 7 24 5 5 the demand was being adequately 1 BHK met for 2BHK units with a 0 0 10 20 30 40 50 60 70 Single Multistorey Residential Residential Figures in percentage (%) shortage of only 3 per cent. A floor House Plot limited demand was observed for localities followed by the South. BHK Configuration - larger residential units. South Chennai However, drastic disparity 4 BHK <1 However, the supply in this between demand and supply ratio 3 Demand% segment was found to be more was registered across all the Supply% than twice the existing demand. regions for these units with 3 BHK 17 37 supply falling short by large The maximum user interest was observed for 2BHK units with margins. 59 2 BHK 55 uniform buyer demand across Property wise Analysis - various zones in the city. A West Chennai 24 uniform demand of 22-25 per cent 70 1 BHK 5 Demand% 62 was also registered for 1BHK 0 10 20 30 40 50 60 70 ) 60 Supply% units across the city. % ( Figures in percentage (%) e g a

t 50

n 42 However, supply fell short by large e c r

e 40 BHK Configuration - margins in all the zones, with a p 31 n

i North Chennai 28 deficit of 16-19 per cent across the s 30 e 4 BHK r 22 0 u zones. g

i 2 Demand%

F 20 Supply% 10 8 Supply exceeded demand for 5 2 3 BHK 16 30 3BHK units across the city with 0 Single Multistorey Residential Residential the maximum supply flowing in floor House Plot 61 from the Central and Southern 2 BHK 62 parts of the city. Negligible An oversupply of residential plots demand and supply ratio was was witnessed in the Western 22 noted for 4 BHK units. An region with supply overshooting 1 BHK 6 oversupply was recorded in this demand by 20 per cent. In all the 0 10 20 30 40 50 60 70 Figures in percentage (%) segment as well. annexuRes VOL2, ISSUE 1; APR-JUN, FY 2012-13 73 CHENNAI

CAPITAL VALUES – LOCALITY WISE CHENNAI Average Residential Apartment Prices

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

Adyar 7700 to 10450 Padur 3500 to 4050 16450 to 20800 Pallavaram 3450 to 3950 Ambattur 3300 to 3950 Pallikaranai 3500 to 4000 7300 to 9350 4900 to 6150 7550 to 10450 2950 to 3500 2700 to 3050 3700 to 4050 Besant Nagar 10650 to 13150 Perungudi 4500 to 5750 Chembarambakkam 3300 to 3650 3350 to 4600 5300 to 7000 Porur 4000 to 5000 3050 to 3700 R.A Puram 18350 to 23550 Chromepet East 3500 to 4350 Ramapuram 4900 to 5300 3750 to 3900 5450 to 6750 GST Road 3000 to 3650 Selaiyur 3950 to 4800 2650 to 3050 Sholinganallur 3900 to 4750 Iyyappanthangal 3500 to 4000 Singuperumal Koil 2550 to 2900 Kalavakkam 3250 to 3900 3300 to 4050 Kelambakkam 2750 to 3250 2450 to 2950 8900 to 11350 Sunkuvarchatram 2700 to 2750 6650 to 8250 T.Nagar 8000 to 10350 Kolathur 2900 to 3950 Tambaram 3200 to 3650 Kovur 3400 to 3650 Tambaram East 3300 to 3950 3750 to 4150 Tambaram West 3100 to 4000 Madipakkam 3700 to 4300 Thirumullaivayal 3250 to 3650 5450 to 6600 Thiruvanmiyur 7600 to 9950 3300 to 3750 Thoraipakkam 4450 to 5450 Medavakkam 3700 to 4100 Tirupurur 2550 to 3050 Mogapper 4200 to 5450 3650 to 3950 Mogapper West 4300 to 5700 Urappakkam 3150 to 4000 Nanmangalam 3300 to 3900 6850 to 9150 3650 to 3950 4700 to 5350 5250 to 5950 3800 to 5000 Nungambakkam 10250 to 12900 Vandalur 3900 to 4450 Old Mahabalipuram Road 3100 to 3850 Velachery 5400 to 6750 Oragadam 2600 to 3150 4500 to 4950 2850 to 3200 5750 to 7050

VOL2, ISSUE 1; APR-JUN, FY 2012-13

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