Mumbai Residential March 2019 Marketbeats
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MUMBAI RESIDENTIAL MARCH 2019 MARKETBEATS 20% 60% 49% GROWTH IN UNIT SHARE OF MID SHARE OF EXTENDED SUBURBS L A U N C H E S ( Q o Q ) SEGMENT IN Q1 2019 IN LAUNCHES (Q1 2019) HIGHLIGHTS RENTAL VALUES AS OF Q1 2019* Average Quoted Rent QoQ YoY Short term Submarket New launches continue to grow (INR/Month) Change (%) Change (%) outlook Quarterly unit launches continued to grow in Q1 2019, recording a 20% q-o-q increase, High-end segment South 60,000 – 700,000 0% 0% with majority of project launches seen in Extended Eastern and Western Suburbs along South Central 60,000 - 550,000 0% 0% Eastern with the Thane submarket. These three submarkets contributed nearly 72% of quarterly 25,000 – 400,000 0% 0% Suburbs Western launches in Q1 2019. Major developers active during the quarter were Puranik Builders, 50,000 – 800,000 0% 0% Suburbs-Prime Lodha Group, Hiranandani Developers, Shapoorji Pallonji Real Estate and SD Corp. Mid segment Eastern 18,000 – 70,000 0% 0% Suburbs Western Affordable and mid segment driving demand 20,000 – 80,000 0% 0% Suburbs Affordable and mid-segment housing continued to remain the preferred categories for Thane 14,000 – 28,000 0% 0% buyers when making home purchase decisions. To cater to this growth segment, Navi Mumbai 10,000 – 50,000 0% 0% developers remained focused on launching projects in these segments. The share of mid- segment projects was 60% of the total unit launches during the quarter, followed by the CAPITAL VALUES AS OF Q1 2019* Average Quoted Rate QoQ YoY Short term Submarket affordable segment holding a 36% share. The change in GST rates for under-construction (INR/sf) Change (%) Change (%) outlook projects (5% GST on all under-construction units which do not fall in the affordable High-end segment South 40,000 – 83,000 0% 0% category) did not bring any significant positive change in residential sales. Buyers are still South Central 22,000 – 73,000 0% 0% Eastern preferring ready to move in or nearing possession residential units across all submarkets. 12,000 – 40,000 0% 0% A Cushman & Wakefield Suburbs Western Research Publication 12,000 – 35,000 0% 0% Suburbs Capital values remain constant Mid segment Eastern DATA The quoted average capital values across all submarkets were stable during the quarter; 10,000 – 24,000 0% 0% INTO Suburbs Western ACTION however we continue to see actual transactions taking place at a minor discount of 5-10% 9,000 – 26,000 0% 0% Suburbs on quoted rates. Going forward, we expect rental and capital values to remain largely Thane 7,000 – 14,000 0% 0% www.cushmanwakefield.com stable across majority of the submarkets. Navi Mumbai 5,000 – 15,000 0% 0% MUMBAI RESIDENTIAL MARKETBEATS MARCH 2019 Rohan Sharma SIGNIFICANT PROJECTS LAUNCHED IN Q1 2019 Director Research Services Tel: +91 124 4695555 BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) [email protected] Puranik City Neral Puranik Builders 16,56 5,995 Hiranadani Regent Hill Powai Hiranadani Developers 1,021 33,333 SD Corp Sarova – Siennaa Kandivali SD Corp 867 23,001 SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q1 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS EXPECTED COMPLETION Indiabulls Green – Phase II Panvel Indiabull Real Estate 5,805 Q4 2022 Lodha Upper Thane Thane Lodha Developers 2,743 Q4 2020 – Q1 2023 Hiranadani Palace Garden Panvel Hiranadani Developers 2,600 Q1 2020 SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) Hiranandani Zen Powai Hiranadani Developers 18,50 380 - 745 Green World Airoli Akshar Developers 858 960 – 1,680 JV – Wadhwa Group, MAN Mulund West 576 690 – 920 Atmosphere Infraconstruction & Chandak Group Data collated from primary and secondary resources. Estimations are subject to change DATA * Rental and capital values have been depicted only for key submarkets INTO ** Quoted capital value on carpet area based on agreement values which includes, Base Rate, Car Parking Charges, Internal Development Charges, etc. ACTION The above values for high-end segment are for units typically of 1,200-3,000 sf The above values for mid segment are for units typically of 800-1,400 sf ^Affordable housing has been defined as units with a carpet area of 60 sq.mt in metros / 90 sq.mt in non-metros and value up to INR 45 lakhs A Cushman & Wakefield KEY TO SUBMARKETS Research Publication High-end Segment South: Colaba, Cuffe Parade, Nariman Point, Churchgate, Altamount Road, Carmichael Road, Malabar Hill, Napeansea Road, Breach Candy, Pedder Road, Tardeo South Central: Worli, Prabhadevi, Lower Parel / Parel, Dadar, Matunga Eastern Suburbs: Wadala, Sion, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali Cushman & Wakefield (NYSE: CWK) is a leading global real estate Western Suburbs - Prime: Bandra, Khar, Santacruz, Juhu services firm that delivers exceptional value for real estate occupiers Western Suburbs: Andheri, Vile Parle, Jogeshwari, Goregaon, JVLR, Malad and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across Mid Segment core services of property, facilities and project management, leasing, Eastern Suburbs: Sion, Wadala, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali, Kanjurmarg, Bhandup, Mulund capital markets, valuation and other services. To learn more, visit Western Suburbs: Andheri, Jogeshwari, Goregaon, JVLR, Malad, Kandivali, Borivali, Dahisar www.cushmanwakefield.com or follow @CushWake on Twitter. Thane: Thane, Ghodbunder Road Navi Mumbai: Airoli, Ghansoli, Rabale, Koparkhairane, Vashi, Turbhe, Sanpada, Nerul, Belapur, Kharghar, Panvel www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..