FOREWORD

The year 2013 has been a topsy-turvy ride for the housing sector. Sentiments have remained subdued in the recent months. However, our latest HSI report indicates early signs of a bump-up in the buyer sentiment. While it is still early days to conjecture whether this will translate into a strong buying cycle, the trend will nevertheless come as a welcome relief to the industry. Property markets remained slow in the quarter. But we bring you PropIndex with a host of positive findings.

Key Findings l Residential properties worth between Rs 30-50 lakh continued to see maximum demand. l Consumer demand for premium villas/independent houses worth Rs 2 crore and above topped in Bangalore and Gurgaon. l Delay in projects has pushed demand for ready-to-move-in projects significantly. This is primarily due to increasing pressure of EMI plus rental values. l Resale projects have become significantly more affordable as slow transaction rate has widened the gap between resale and new property prices. l There is active search indicating intense interest among buyers. As soon as sentiments change, probably after the upcoming general elections in 2014, buyers will be ready with information and there may be quick turn around of sales. l Consumer demand for residential plots topped in and Bangalore. Close to 50 per cent demand for residential plots was for properties worth upto Rs 30 lakh. l In the latest quarter, Oct-Dec 2013, the NPI showed no change in comparison to a 4 per cent rise in the Jul-Sep 2013 quarter. Cautious approach among property seekers and controlled supply by local as well as national developers has held the growth of the National Property Index (NPI). l The Listed Price Monitor, which largely shows capital appreciation/drop within a locality ranged between minus 1 per cent to plus 5 per cent. We have been publishing PropIndex for close to three years now. Over this period, we’ve accumulated a wealth of data/analytics on price/locality trends and market performance. We get our kicks if all of this helps you in making better informed property decisions. Do write in at [email protected] and share your views on this report and how we could make PropIndex even better. 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 . 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. 600,000 active properties well as the budget-wise posted by more than While listing and its preferences. values/supply provide a 1,50,000 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 multistorey 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 Oct-Dec 2013 quarter from different perspectives – from that of capital appreciation, from a rental/yield realisation perspective and from a supply standpoint. Also, Demand Analysis section, 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 Jul-Sep 2013 and Oct-Dec 2013 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. VOL 3, ISSUE 3; OCT-DEC, FY 2013-14 propindex.magicbricks.com

NATIONAL PROPERTY INDEX (NPI) OCT-DEC 2013

n Slow transactions widened the gap between resale and new property prices n Delay in projects pushed demand for ready-to-move-in projects significantly. n Upcoming general elections in 2014 lowered the rate of inflow of funds. n Demand for premium property worth Rs 2 crore and above tops in Bangalore and Gurgaon. OCT-DEC 2013 and Ghaziabad with 2 per cent rise each. Noida registered the in Chennai, Kolkata and Cautious approach by property lowest rise of 1 per cent. Hyderabad. However, lowest seekers and controlled supply by supply was registered in Gurgaon, local and national developers held Bangalore registered the steepest Mumbai and Delhi. the growth of the National fall of 4 per cent. This was followed by Delhi and Gurgaon Properties worth over Rs 1.5 crore Property Index (NPI). In the comprises 18 per cent of total Oct-Dec 2013 quarter, the NPI with 2 per cent each. Ahmedabad registered a drop of 1 per cent. supply of apartments in the showed no change in comparison 11 cities. to a 4 per cent rise in the The Listed Price Monitor, which Jul-Sep 2013 quarter. largely shows the capital IN THIS REPORT: appreciation/drop within a NPI is a weighted average of National Property Index...... 1 supply and values across 11 cities locality, ranges between minus in India. In the last quarter, the 1 per cent to plus 5 per cent. Delhi...... 4 city index value remained intact Mumbai listed price monitor Gurgaon...... 13 within the range of minus registered the maximum rise with 4 per cent to plus 5 per cent. 5 per cent primarily on account of Noida & Ghaziabad...... 24 premium localities where values Of the 11 cities in the apartment Mumbai...... 36 index, five cites saw a rise of remained steady and up. This was 1-5 per cent (Chennai, Mumbai, followed by Ghaziabad and Pune Pune...... 47 with 3 and 2 per cent rise Pune, Ghaziabad and Noida), Ahmedabad...... 56 four registered a drop between respectively. 1-4 per cent (Bangalore, Delhi, Hyderabad and Bangalore in Kolkata...... ,...... 61 Gurgaon and Ahmedabad) and the South and Ahmedabad in the Chennai...... 70 two witnessed stable index values West registered a small drop of (Hyderabad and Kolkata). 1 per cent. Delhi and Gurgaon Hyderabad...... 79 showed no change. Chennai registered the maximum Bangalore...... 89 rise of 5 per cent in the city index. Housing value upto Rs 50 lakh It was followed by Mumbai, Pune continued to see maximum supply Annexures...... 99 propindex.magicbricks.com 02 VOL3, ISSUE 3; OCT-DEC, FY 2013-14

negative consumer sentiments hit the Noida realty market towards the middle of the year. This situation improved slightly as the year drew to a close. New developing Sectors 74-78 have been trading well in terms of residential demand and capital appreciation. This kept the index value intact primarily due to proximity to developed Sectors 50 and 51 and comparatively affordable values. The residential market in Ghaziabad witnessed a rise of 2 per cent in the City Index and 3 per cent in the listed price monitor. Rise in average capital values in over 80 per cent of the localities tracked in the city, kept NATIONAL PROPERTY INDEX Oct-Dec 2013 quarter. This is the values positive. Properties primarily on the back of slow both in the affordable range of l Slow transaction rate has transactions and new launches widened the gap between resale in the city. A small rise of and new property prices. 1-4 per cent in close to 40 per cent Preferred Localities - Sale of total localities, held the free fall l Weak consumer sentiments on of the listed price monitor. the back of slow economic Locality Rank Q2 Q1 growth and consistent rise in The Delhi City Index dropped by interest rates by RBI and delay 2 per cent during the Oct-Dec 2013 Mumbai 1 1 in projects pushed demand for quarter as compared to a rise of Bangalore 2 2 ready-to-move-in projects 4 per cent in the previous quarter. Pune 3 3 significantly. Slow development rate, mainly in New Delhi 4 4 the redevelopment of existing l Residential properties worth Chennai 5 6 properties, coupled with a small Rs 30-50 lakh was in maximum rise in merely 38 per cent of the Hyderabad 6 8 demand. localities led to a drop in the city Kolkata 7 5 l Consumer demand for premium index. Rental market too Gurgaon 8 7 villas/independent houses remained subdued with over Noida 9 9 worth Rs 2 crore and above 50 per cent localities registering a Ghaziabad 10 10 topped in Bangalore and drop in average rental values. Note: Q3 Oct-Dec 2013, Q2 Jul-Sep 2013 Gurgaon. The market performance was slow l Close to 50 per cent demand for in the Oct-Dec 2013 quarter, with Preferred Localities - Rent residential plots was for buyers skeptical about investing properties worth upto before the general elections 2014. Locality Rank Q2 Q1 Rs 30 lakh While the number of enquires remained stable, actual Mumbai 1 1 l Chennai and Bangalore transactions went down. This Bangalore 2 2 accounted for over 55 per cent pushed the Gurgaon City Index Pune 3 4 demand for residential plots downwards by 2 per cent. Over New Delhi 4 3 across 11 cities. 60 per cent of localities registered either a drop or remained Chennai 5 5 l Upcoming general elections in rgaon 6 6 2014 have lowered the rate of unchanged, keeping the listed Gu real estate investment in the price monitor stable. Hyderabad 7 7 country. Noida City Index and the listed Kolkata 8 8 9 9 Ahmedabad City Index as well as price monitor moved up by Noida the listed price monitor registered 1 per cent during the Oct-Dec 2013 Ahmedabad 10 10 a drop of 1 per cent in the quarter. Project delays and Note: Q3 Oct-Dec 2013, Q2 Jul-Sep 2013 VOL3, ISSUE 3; OCT-DEC, FY 2013-14 03 propindex.magicbricks.com

National - Consumer Budget Preference

30%

25% 23%

20% 15% 15% 15% 14% 13% 12% 10% 8%

5%

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

Rs 20-40 lakh and Rs 40-70 lakh quarter. With a few notable TOP YIELD GROSSERS remained high. Demand remained exceptions, 70 per cent of the strong, over 70 per cent, for multi- micro markets reported a Gross yield is a ratio of average annual storey apartments. marginal change in property rental value to the average capital value values. This impacted the overall of the property. Given below are the top yield-grossing localities in each city. Underlying demand for residential Listed Price Monitor, recording a properties remained robust even rise of just 1 per cent. In the rental Locality Gross yield though actual transactions were at market, an equal number of micro Bangalore, Marathahalli 5.11% an all-time low. Thus, there was no markets registered a rise and drop Kolkata, Narendrapur 4.67% price correction inspite of unsold in average prices. inventory. This resulted in a rise of Hyderabad, Nizampet 4.48% 2 per cent in Mumbai City Index. With the unresolved Telegana Chennai, OMR 3.81% With rise in 53 per cent of the total agitation, prices in Hyderabad Ahmedabad, Vejalpur 3.78% localities and no new launches, have not grown significantly. This the listed price monitor rose by kept the city index as well as the Mumbai, Parel 3.45% 5 per cent. listed price monitor intact. In the Noida, Sector-92 3.28% Oct-Dec 2013 quarter, the Pune, Viman Nagar 3.07% The Pune residential market Hyderabad City Index remained Ghaziabad, Indirapuram 2.93% consistently performed quarter- unchanged and the Listed Price Delhi, Malviya Nagar 2.56% over-quarter. In the Oct-Dec 2013 monitor moved up by 1 per cent. quarter, the City Index as well as Gurgaon, Sushant Lok-I 2.49% the listed price monitor rose by Unlike the previous quarter, the 2 per cent. This was due to robust Bangalore City Index dropped by CAPITAL GAINS demand for properties along the IT 4 per cent in the Oct-Dec 2013 corridor in areas such as Wakad quarter. With a major portion of The table given below indicates and Baner in the West and localities reporting a steady maximum increase in capital values in Kharadi, Viman Nagar and market with little change in each city. Magarpatta in East Pune. property values, the overall Listed Locality % Change Price Monitor for Bangalore The new amendment in the registered a drop of 1 per cent. Chennai, 12.14% Income Tax Act adversely affected Hyderabad, Dilsukhnagar 9.80% the market, especially where the Slow economic growth, rising Kolkata, New Alipore 9.13% registry value of the flats was interest rates by the RBI, coupled more than the actual transaction with delay in projects has Pune, Sopan Baug 8.81% value. This resulted in a drop in increased the burden on property Bangalore, Varthur 7.33% the number of transactions in buyers. They also have to bear the Mumbai, Andheri West 6.66% these locations and resulted in no expenses of increased EMI as well Delhi, Hauz Khas 5.73% change in the Kolkata City Index as rental values. This has pushed Ghaziabad, Lal Kuan 5.56% value in the Oct-Dec 2013 quarter. the demand for ready-to-move-in apartments over under- Ahmedabad, Vaishnu Devi 5.08% The Chennai City Index rose by construction property in the Gurgaon, Sector-82 5.00% 5 per cent in the Oct-Dec 2013 current Oct-Dec 2013 quarter. Noida, Sector-82 4.56% CHENNAI propindex.magicbricks.com 70 VOL3, ISSUE 3; OCT-DEC, FY 2013-14

PROPINDEX - CHENNAI Editorial In Chennai the micro markets in and around the IT corridor continued to lead in demand for properties in the city. With 50 per cent of localities witnessing a rise in the average capital values, the listed price monitor closed on a positive note. Inspite of the enforcement of an additional 2 per cent increase in registration charges, with the announcement of additional 1 per cent on stamp duty and 1 per cent on the registration fees on the cost of construction, the end-users did not stop buying. The Chennai City Index rose by 5 per cent in the Oct-Dec 2013 remained the most quarter, as compared to the Jul-Sep 2013 quarter which reported desired residential destination with no a 3 per cent rise. This impacted the List Price Monitor of change in the preference chart of the top five localities in both rental as well Chennai, recording a rise of 1 per cent for the said quarter, as for outright purchase. This unlike the previous quarter. The NPI remained unchanged. indicates the robust demand for properties in and around the IT hubs and the transport corridors such as Old Mahabalipuram Road (OMR) and Key Takeaways the Grand Southern Trunk Road (GST). l Areas like Thiruvanmiyur, maintain their value, even New Project supply continued to top and Kolathur growing marginally in the the chart in South Chennai with recorded significant increase in current quarter. maximum supply in areas such as property values (12, 10 and 7% , , East Coast Road (ECR), Pallikarnai and respectively). l Micromarkets like , OMR (Old Thiruvanmiyur. l Micromarkets like , Mahabalipuram Road), The city registered close to 60 per cent Kelambakkam, , , demand for properties worth Thoraipakkam , Township and Hasthinapuram Rs 20-60 Lakh. The maximum reported a marked drop in have either grown by 1-2 per cent demand was recorded for properties values in the current quarter. in the Oct-Dec 2013 quarter or between Rs 20-40 lakh with a marginally dropped by just marginal deficit in supply. The multi- storey apartments and single floor l While Kelambakkam, Korattur 1 per cent. and Thoraipakkam dropped by units continued to see a mismatch between demand and supply. 6 per cent, in Poonamallee the l No sign of price correction was values fell by 5 per cent in the witnessed in the residential Property buyers continued to give Oct-Dec 2013 quarter. market in the last three months, preference to the multi-storey despite slow transaction rate. apartments over single floor units. l Property values in Nolambur, This gave an opportunity to both dropped by 7 per cent. l Prime areas within Chennai like private as well as the government Thiruvanmiyur and builders to fill in the gap. l Even though the market was Nungambakkam proved to be Unlike other cities, the Chennai market sluggish, transactions have been the most preferred residential steadily growing, especially as registered very small deviations in the location this quarter. demand and supply across the BHK compared to the Mumbai and configurations. A marginal increase in the Delhi-NCR markets. l With a few notable exceptions, demand was noted for 1 and 3BHK 50 per cent of the micromarkets units in the current quarter. l The residential real estate reported a marginal rise in the The rental market showed some market – both in terms of property values. outright purchase or rental – interesting trends, with an equal number of localities exhibiting seems to have been steady in the l Localities in the Southern and variations in the average rental values Oct-Dec 2013 quarter. Central part of Chennai in the last three months. The average continued to generate gross rental values in the majority of areas l Suburbs in South Chennai, return on investment between in exhibitted positive which were reporting robust 2.3-3.8 per cent per annum. trends with one or two exceptions. growth, have managed to VOL3, ISSUE 3; OCT-DEC, FY 2013-14 71 propindex.magicbricks.com CHENNAI

LISTED PRICE MONITOR RENT MONITOR

1% l Areas like Korattur, Thoraipakkam, Kelambakkam l Nearly 43 per cent of the localities tracked, recorded and Nolambur recorded a marked drop in capital a rise in rental values during the Oct-Dec 2013 values, resulting in an increased Listed Price quarter reflecting a robust rental market. Monitor of just 1 per cent. l recorded a healthy rise of almost l Suburbs in the South such as Medavakkam grew by 7 per cent in rental values during the quarter. The just 1 per cent. While the OMR, Madipakkam and location is in demand as it is in the heart of the city Iyyappanthangal recorded a 2 per cent increase in and is highly populated. the said period. l RA Puram also recorded a healthy rise of more than l Similarly in the North, West and East places like 8 per cent in rental values. Its strategic location, and reported an increase of close to and Kapaleshwarar temple, 1 per cent, while , saw a 1 per cent drop. comparatively lower rental values and the presence of several educational institutions in the area has l Of the tracked localities in the city, 50 per cent of given an impetus to the rental demand from students them showed a rise in the current quarter. at these institutions.

YIELD METER

Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Nungambakkam 26.50 12,400 2.56% 16.50 6,375 3.11% Thiruvanmiyur 20.75 10,625 2.34% 14.25 5,725 2.99% OMR 13.25 4,175 3.81% 12.75 5,075 3.01% Alwarpet 30.50 15,650 2.34% 22.75 10,100 2.70% 18.75 8,525 2.64% Kelambakkam 10.00 3,425 3.50%

l During the Oct-Dec 2013 quarter, the Magicbricks l Kelambakkam, which recorded 3.50 per cent gross yield meter ranged from 2.28-3.81 per cent. yield, is in the second spot, after OMR.

l OMR regained its top slot, recording the highest l Alwarpet and Thiruvanmiyur reported the lowest gross rental yield, displacing Urapakkam which increase in gross rental value for the said quarter. had recorded 4.21 per cent in the Jul-Sep 2013 Saturated land pockets and up-market luxury quarter, owing to its proximity to several areas are two reasons attributed to the muted IT Parks. increase in rental values in these areas. CHENNAI propindex.magicbricks.com 72 VOL3, ISSUE 3; OCT-DEC, FY 2013-14

PREFERRED LOCALITIES

SALE RENT

Locality Capital Rank Locality Rental Rank Values Q3 Q2 Values Q3 Q2 OMR 3800 to 4800 1 1 Velachery 15000 to 19000 1 1 Velachery 5900 to 7200 2 2 Adyar 20000 to 26000 2 2 Medavakkam 4150 to 4950 3 3 Thiruvanmiyur 18500 to 25000 3 3 3000 to 3500 4 5 13000 to 17500 4 4 Porur 4650 to 5850 5 4 Medavakkam 10000 to 13000 5 5 4150 to 4850 6 6 Nungambakkam 24000 to 31000 6 7 Adyar 11850 to 15700 7 8 23500 to 30500 7 6 Madipakkam 4500 to 5450 8 7 Porur 11500 to 15000 8 9 Kolathur 4350 to 5650 9 10 OMR 12000 to 15500 9 - Tambaram 3700 to 4200 10 - Perungudi 13000 to 16000 10 10 Note: Q3 Oct-Dec 2013, Q2 Jul-Sep 2013 Note: Q3 Oct-Dec 2013, Q2 Jul-Sep 2013 l South Chennai seems to be the most preferred l Velachery, Adyar and Thiruvanmiyur retained their residential zone in the city, with eight out of the top top slots as the most preferred rental destinations in ten preferred localities falling in this zone. the Oct-Dec 2013 quarter. Well planned residential layouts, wide roads, presence of prominent schools l OMR, Velachery and Medavakkam retained their and colleges and medical facilities continue to top three positions as the preferred residential render these locations as preferred for rentals. localities. While OMR is in demand due to availability of ready-to-move-in properties, l Proximity to the IT zones such as the proximity to OMR makes Velachery and near Adyar ensures continued rental demand from Medavakkam attractive for IT professionals. IT professionals who prefer to stay here. l Guduvancheri gained prominence as a preferred l Strategic location, easy access to the city centre and location, by moving up one position on the list of to the upcoming areas ensured their popularity. preferred localities for sale, displacing Porur. Thiruvanmiyur, for instance, is connected to the OMR on one end and to the ECR at the other. l Despite connectivity to the IT hubs of and easy accessibility to both South and East Chennai, l Lower rental values and easy accessibility to the Porur dropped by one spot on the list. IT hubs augers well for the rental markets of Sholinganallur and Medavakkam. l Pallikaranai and Medavakkam have been in demand due to accessibility and connectivity. Infrastructure l Inspite of high rental values, proximity to large development, extension of MRTS, enhancement of office and commercial establishments drive the road connectivity to GST and the proposed monorail rental demand in locations such as Mylapore and project, are boosting the realty market here. Nungambakkam.

Growth Number of Localities with Most Active Corridor Projects Maximum Property Residential Projects Typology (Multi-storey)*

South 115 Kelambakkam, Tambaram, OMR, 77% ECR, Pallikarnai, Thiruvanmiyur

North 18 Poonamallee`, , Padi, 84% Kolathur,

Central 24 Porur, KK Nagar, Katupakkam, 88% , Maduravoil

*Percentage of total supply Above 50% 25-50% 15-25% 5-15% Less than 5% VOL3, ISSUE 3; OCT-DEC, FY 2013-14 73 propindex.magicbricks.com CHENNAI

EXPERT SPEAK Q&A Developer “Overall the builders have witnessed a continued slow and steady market in Chennai in the said quarter. Expectations were high in some segments in the last few months, but it

Nawaz Hussain has not materialized as the target segment is Director South India Shelters still playing the watch-and-wait game. The Rohit Kumar Pvt. Ltd difference today as compared to earlier is that Head of Research DTZ India the consumer attitude is `let us watch and Which residential pockets will have wait and get the best price and then we will maximum developments in 2014? buy or invest in the market’. , East Coast Road, Chromepet, , Kelambakkam, are some localities Broker which could have maximum People in Chennai typically do not get carried development in 2014 due to availability of large land parcels and away by amenities like swimming pools with mid to affordable segment alone, especially if they are too much in the property prices. outskirts. Also, they do not mind paying a How many units are expected to come at possession stage in 2014? P Parthiban premium for property in the main city. The Treasurer & Director rental values for residences in prime areas About 45,000 to 48,000 units are Durga Foundation likely to get completed and give may grow only over a year. This is due to the possession in 2014 . fact that most people there are either owners What will be the impact of the or have rented it out to commercial general elections on development? establishments. The elections may not impact the real estate market in Chennai. However, it will be dependent on the overall R E A L T Y N E W S economic growth and stability in the country after the elections. Chennai saw few key policy and infrastructure announcements that impacted the real estate market in the city. Buyers have to pay an additional 1 per cent How has the financial crunch of stamp duty and registration fees each on the cost of construction. The expansion 2013 impacted development? of the Chennai Municipal Corporation limits, pushed up values. There was about 18 per cent drop in Key policy announcements impacted Chennai’s realty in 2013 demand whereas, new supply was approximately 30 per cent lower in Chennai’s real estate market is facing a wait-and-watch situation till the general elections 2014.The passing year 2013, brought in specific policy announcements and 2013 as compared to 2012. infrastructure developments that impacted the real estate market both positively and Will commercial stage a comeback? negatively. As per the new rules that came into effect in October 2013, the state has made registration of construction agreements mandatory. Thus, people buying apartments in The vacancy levels in Chennai are Chennai will have to pay 2 per cent additional registration charges. currently the lowest since 2010. The n Magicbricks.com Bureau take-up recorded at the end of 2013 was 5 per cent higher Y-o-Y. With Chennai: Residential locations off the OMR gain popularity steady demand and low vacancy Localities situated around 6-10 km from the OMR such as Velachery, Madipakkam and levels, the commercial segment is Medavakkam are increasingly becoming preferred residential locations. The OMR has expected to perform better in 2014. remained one of the most preferred residential locations in South Chennai, particularly for IT professionals. As opposed to localities on the OMR, residential locations situated Which category do you expect within a radius of 6-10 km from the OMR are more preferred. maximum buyer attraction in 2014? Magicbricks.com Bureau n Multi-storey apartments. To read full story and more news go to www.content.magicbricks.com CHENNAI propindex.magicbricks.com 74 VOL3, ISSUE 3; OCT-DEC, FY 2013-14

DEMAND - SUPPLY ANALYSIS Chennai’s developers need to concentrate a little better on the Upto Rs 20 lakh and Rs 20-40 lakh categories, where demand exceeds supply by 5 per cent and the Rs 20-40 lakh category where supply falls short by 5 per cent. Otherwise, the Chennai demand and supply profiles are fairly evenly matched in the quarter. The mismatch comes when majority of demand was for apartments while a large volume of supply was in single floors that are falling in demand. The demand for Independent houses exceeded supply. The only mismatch was in the 4BHK and above category where supply exceeded demand. In other categories the supply-demand profile was fairly evenly matched.

Budget wise Analysis - City Level Budget wise Analysis l The demand and supply in DEMAND SUPPLY Chennai remained more or less (Jul-Sep 2013) 40 40 constant in the current quarter 35 (Oct-Dec 2013) 34 (Jul-Sep 2013) over the previous quarter. Though ) (Oct-Dec 2013) ) 30 30 % % ( 30 ( 30 a mismatch between demand and e e g g

a 23 a t 22 t 22 21 22 supply was observed in some n n 20 e e c c

r 20 r 20 e 16 16 e budget categories.

p 15 p 14 13 14 14 14 n n

i 12 12 i

s s

e e l r 10 r 10 While the demand in the Upto u u g g i i

F F Rs 20 lakh was 15 per cent, the 0 0 supply was 20 per cent. On the <20 20-40 40-60 60-100 100 & <20 20-40 40-60 60-100 100 & above above other hand, the demand in the Figures in Rs lakh Figures in Rs lakh Rs 20-40 lakh was 35 per cent but the supply was only 30 per cent.

Property wise Analysis Property wise Analysis - City Level l The maximum supply of DEMAND SUPPLY 38 per cent was noted for Single 50 (Jul-Sep 2013) 50 (Jul-Sep 2013) Floor units, which also showed an (Oct-Dec 2013) (Oct-Dec 2013) 40 41 increase of 8 per cent over the ) ) 38 % 40 % 40 ( ( previous quarter. But the demand e e g g a a 31 t t in this category was only n n 28 e 30 28 28 e 30 c c 30 r r 26 10 per cent. e e p p 23

n n i i

18 s 20 17 s 20 e e l This mismatch was also observed r r u u g g i 10 i in the multi-storey apartments and F 9 F 9 10 10 8 residential house categories. The 5 4 4 3 demand was 41 and 17 per cent 0 0 Multistorey Single Residential Residential Villa Multistorey Single Residential Residential Villa respectively, while the supply was apartment floor house plot apartment floor house plot 23 and 8 per cent only.

BHK wise Analysis - City Level BHK Configuration - City Level l The maximum demand was seen in DEMAND SUPPLY the 2BHK (60%) configuration, 80 (Jul-Sep 2013) 80 (Jul-Sep 2013) followed by 3BHK (28%) units. This (Oct-Dec 2013) (Oct-Dec 2013) corresponded with supply of

) 62 60 )

% % 59 59 59 and 28 per cent respectively, in ( (

e 60 e 60 g g

a a both the categories. t t n n e e c c r r e e

p 40 p 40 l The 4BHK and above category had

n n i i 28 s 27 s 28 28 a marginal demand of 3 per cent e e r r u u g g

i i while the supply was double at

F 20 F 20 99 6 per cent. The 1BHK category 6 7 7 6 2 3 showed a difference of 2 per cent in 0 0 1BHK 2BHK 3BHK 4BHK & 1BHK 2BHK 3BHK 4BHK & the demand (9%) and supply (7%) above above in the current quarter. VOL3, ISSUE 3; OCT-DEC, FY 2013-14 75 propindex.magicbricks.com CHENNAI

DEMAND & SUPPLY - South Chennai

In South Chennai, there were more units in the Upto Rs 20 lakh category than demand. However, the demand for the Rs 20-40 lakh units exceeded supply by about 4 per cent. The biggest mismatch was in the type of formats that consumers looked for. Consumers clearly want more apartments with demand exceeding supply by 14 per cent. Single floors constituted 42 per cent of supply while there was just a 10 per cent demand. Just a third of the demand for houses was met with supply. In BHK units, supply matched demand except in the 4BHK and above where there was more supply than demand.

Budget wise Analysis Budget wise Analysis

l A slight variation in the demand and supply was seen across Q2 Q3 Q2 Q3 categories in the current quarter, though the same trend was 10 10 13 12 Q2 (Jul-Sep 2013) 16 observed in the previous Jul-Sep 2013 quarter as well. 16 14 14 Q3 (Oct-Dec 2013) 24 23 27 25 Rs <20 lakh l The demand in the Rs 20-40 lakh was 37 per cent while the supply Rs 20-40 lakh was limited at 33 per cent. Similarly, the Rs 60-100 lakh category showed a demand of 16 per cent while the supply was 14 per cent. 37 33 Rs 40-60 lakh 37 32 Rs 60 lakh-1 crore l The Upto Rs 20 lakh, Rs 40-60 lakh and Rs 100 lakh and above

Rs1 crore and above categories showed a difference of 2 per cent with supply more than 16 13 14 14 demand in the current quarter. This trend was almost similar to the DEMAND SUPPLY trend in the previous quarter.

Property wise Analysis Property wise Analysis

l The multi-storey apartment category witnessed a demand of Q2 Q3 Q2 Q3 39 per cent, while the supply was substantially less at 25 per cent, 31 31 22 23 Q2 (Jul-Sep 2013) though registering an increase of 5 per cent over the previous 94 Q3 (Oct-Dec 2013) Jul-Sep 2013 quarter. Multistorey apartment 15 15 7 6 l Similarly, the demand for residential plots (31%) and residential 36 42 Single floor 9 10 houses (15%) was more, with supply at 23 and 6 per cent only, same Residential house 39 39 as in the previous quarter. 30 Residential plot 25 l On the other hand, while the demand for the Single Floor category Villa was only 10 per cent the supply was significant at 42 per cent in the

DEMAND SUPPLY current Oct-Dec 2013 quarter.

BHK wise Analysis BHK wise Analysis

l South Chennai witnessed maximum demand and supply of Q2 Q3 Q2 Q3 61 per cent in the 2BHK category, almost similar to the previous 6 26 28 27 27 Jul-Sep 2013 quarter. Q2 (Jul-Sep 2013) Q3 (Oct-Dec 2013) l The same trend was also observed in the 3BHK category with 63 61 60 61 1 BHK matching demand (28%) and supply (27%) in the current 2 BHK Oct-Dec 2013 quarter. 3 BHK l The 1BHK configuration also saw a healthy demand of 9 per cent 4 BHK & above with an almost matching supply at 7 per cent, in the current quarter which was similar to the trend observed in the previous 9 9 77 DEMAND SUPPLY Jul-Sep 2013 quarter. CHENNAI propindex.magicbricks.com 76 VOL3, ISSUE 3; OCT-DEC, FY 2013-14

DEMAND & SUPPLY -

In North Chennai there was more supply than demand for property in the Upto Rs 20 lakh budget. There was more demand than supply in the Rs 20-40 lakh budget. Other categories were fairly evenly matched. While consumers were seeking apartments and houses, the market was providing single floor units and plots. Most of the demand and supply was in the 2 and 3BHK units. North Chennai’s buyers are migrating from plotted development to apartments. The single floor units, however, are still easier to build than to sell.

Budget wise Analysis Budget wise Analysis

l The maximum demand of 35 per cent was registered for the Q2 Q3 Q2 Q3 Rs 20-40 lakh category, while the supply in the same was 29 per cent 12 13 13 14 Q2 (Jul-Sep 2013) in the current quarter. 15 14 11 14 Q3 (Oct-Dec 2013) 13 Rs <20 lakh 19 17 14 l A similar supply of 30 per cent was noticed in the Upto Rs 20 lakh 28 29 Rs 20-40 lakh category, while the demand was only 21 per cent. The Upto 35 35 Rs 20 lakh category also witnessed a drop of 4 per cent over the Rs 40-60 lakh previous Jul-Sep 2013 quarter. 34 30 Rs 60 lakh-1 crore l 21 Rs1 crore and above The demand in the Rs 40-60 lakh category was 17 per cent, while the 19 supply was 14 per cent, also registering an increase of 3 per cent DEMAND SUPPLY over the previous quarter.

Property wise Analysis Property wise Analysis

l The multi-storey apartment category was most demanded at Q2 Q3 Q2 Q3 41 per cent but had a supply of only 17 per cent, showing a mismatch 26 26 42 39 Q2 (Jul-Sep 2013) between the two. 94 Q3 (Oct-Dec 2013) l Similarly, the residential house category had a demand of 28 23 Multistorey apartment 23 per cent, whereas, the supply was limited at 10 per cent, 14 10 Single floor dropping by 4 per cent over the previous quarter. 8 30 7 22 Residential house 41 37 l While the demand for the single floor units was only 8 per cent, the Residential plot 20 supply was robust at 30 per cent, also registering an increase of 17 Villa 8 per cent. The residential plot category had a demand of 26 per cent

DEMAND SUPPLY while the supply was almost 40 per cent.

BHK wise Analysis BHK wise Analysis

l As seen across the city, the most demanded and supplied categories Q2 Q3 Q2 Q3 were 2 and 3BHK units. The 1BHK and the 4BHK and above catered 7 6 27 29 27 to less than 15 per cent demand and supply. 25 Q2 (Jul-Sep 2013) Q3 (Oct-Dec 2013) l The 2BHK category registered a demand of 58 per cent, matching 61 58 60 59 1 BHK the supply at 59 per cent, with the demand dropping by 3 per cent 2 BHK and supply almost constant in the current quarter. 3 BHK l The 3BHK category recorded a demand of 29 per cent, with an 4 BHK & above almost matching supply at 27 per cent. Both demand and supply 10 witnessed an increase of 2 per cent over the previous quarter. 9 8 8 DEMAND SUPPLY VOL3, ISSUE 3; OCT-DEC, FY 2013-14 77 propindex.magicbricks.com CHENNAI

DEMAND & SUPPLY - Central Chennai

There is more supply than demand in Central Chennai for units of Rs 1 crore and above. On the other hand, there is at least 8 per cent more demand than supply of units worth Rs 20-40 lakh each. Other categories are fairly evenly matched. However, in property types, the supply and demand do not match. Consumers look for apartments which are in short supply while the market offers single floors. Residential houses have a good demand but supply is coming down. Similarly, there are more 3 and 4BHK units than demand but 2BHK units are in demand but short on supply.

Budget wise Analysis Budget wise Analysis

l The Rs 20-40 lakh and Rs 40-60 lakh categories witnessed a similar Q2 Q3 Q2 Q3 demand of 26 per cent, while the supply was 18 and 20 per cent 23 23 34 33 Q2 (Jul-Sep 2013) respectively, in the current quarter. Q3 (Oct-Dec 2013) 23 22 Rs <20 lakh l This was followed by the demand at Rs 100 lakh and above category 22 23 Rs 20-40 lakh at 23 per cent, with the supply in this category a robust 33 per cent, 26 26 similar to the previous quarter. 22 20 Rs 40-60 lakh Rs 60 lakh-1 crore l Only the Rs 60-100 lakh category saw a matching demand (22%) and 23 26 16 18 Rs1 crore and above supply (23%). The Upto Rs 20 lakh category had a negligible demand at 3 per cent, with the supply, though constant, was double of 6 6 DEMAND SUPPLY demand in the Oct-Dec 2013 quarter.

Property wise Analysis Property wise Analysis

l The multi-storey apartment category witnessed more than Q2 Q3 Q2 Q3 50 per cent demand (56%), increasing by 3 per cent. The supply in 12 11 12 12 Q2 (Jul-Sep 2013) the same was only 30 per cent, dropping by 4 per cent over the 94 Q3 (Oct-Dec 2013) 22 20 17 13 previous quarter. Multistorey apartment 10 10 43 l The maximum supply of 43 per cent was seen in the single floor 33 Single floor 53 56 units whereas, the demand was only 10 per cent. The supply also Residential house saw an increase of 10 per cent in the same category. 34 30 Residential plot l The residential house category noted a demand of 20 per cent, with Villa the supply at only 13 per cent, dropping by 4 per cent in the current

DEMAND SUPPLY Oct-Dec 2013 quarter.

BHK wise Analysis BHK wise Analysis

l The 2BHK category witnessed the maximum demand of 57 per cent Q2 Q3 Q2 Q3 while the supply was 49 per cent, registering a mismatch of 11 9 31 30 8 per cent in the current quarter. 33 35 Q2 (Jul-Sep 2013) Q3 (Oct-Dec 2013) l The second most popular category was the 3BHK, noting a demand 58 57 1 BHK of 30 per cent and supply of 35 per cent, again showing a mismatch. 50 49 2 BHK l Though the 1BHK category noted a demand of 10 per cent, the 3 BHK supply was at 7 per cent. While the 4BHK and above category saw a 4 BHK & above demand of only 3 per cent, the supply was a healthy 9 per cent, 10 dropping by 2 per cent in the current quarter, but similar to the 9 6 7 DEMAND SUPPLY trend observed in the previous quarter. CHENNAI propindex.magicbricks.com 78 VOL3, ISSUE 3; OCT-DEC, FY 2013-14

DEMAND & SUPPLY - West Chennai

In West Chennai supply of units of Upto Rs 20 lakh have hit the markets while demand is peaking for the Rs 20-40 lakh category. There is also a greater demand for Rs 100 lakh and above property with supply falling short. In the Rs 40-60 lakh, demand leads supply by approximately 6 per cent. There is significantly more demand than supply for independent houses and a larger supply of plots than there is demand. A greater demand is seen for plots than there is supply. There was an almost matching demand and supply in the BHK configurations.

Budget wise Analysis Budget wise Analysis

l In West Chennai, the Upto Rs 20 lakh category witnessed the Q2 Q3 Q2 Q3 maximum supply and demand. But where the supply was 7 Q2 (Jul-Sep 2013) 10 9 9 7 substantial at 60 per cent the demand was also substantial but only Q3 (Oct-Dec 2013) 17 16 9 10 at 44 per cent, increasing by almost 10 per cent. 20 19 Rs <20 lakh 33 24 Rs 20-40 lakh l The demand in the Rs 20-40 lakh category was 24 per cent, dropping 58 60 by almost 10 per cent over the previous quarter. But the supply in Rs 40-60 lakh 44 the same was limited at 19 per cent. 35 Rs 60 lakh-1 crore

Rs1 crore and above l The Rs 40-60 lakh category also witnessed a healthy demand at 16 per cent while the supply was only 10 per cent, similar to the DEMAND SUPPLY previous quarter.

Property wise Analysis Property wise Analysis

l West Chennai witnessed a substantial demand of over 50 per cent in Q2 Q3 Q2 Q3 the residential plot category, whereas, the supply in this category 67 47 51 69 Q2 (Jul-Sep 2013) was a robust 67 per cent, registering a mismatch. 94 Q3 (Oct-Dec 2013) l The category of single floor units witnessed a demand of Multistorey apartment 19 per cent, dropping by 10 per cent over the previous quarter. This Single floor had a matching supply of 17 per cent in the current quarter. 17 18 7 Residential house l The residential house category witnessed a healthy demand of 17 17 7 9 Residential plot 24 18 per cent but the supply was only 7 per cent, showing a significant 19 Villa mismatch. The multi-storey apartment category had a limited 7 8 DEMAND SUPPLY demand and supply of less than 10 per cent.

BHK wise Analysis BHK wise Analysis

l Approximately 90 per cent of the demand and supply was witnessed Q2 Q3 Q2 Q3 in the 2 and 3BHK categories. The 2BHK category saw a demand of 6 24 25 23 63 per cent with a matching supply of 65 per cent, increasing by 25 Q2 (Jul-Sep 2013) Q3 (Oct-Dec 2013) 7 per cent over the previous quarter. 62 63 65 58 1 BHK l This was followed by the demand of 25 per cent in the 3BHK 2 BHK category and again a matching supply of 23 per cent in the current 3 BHK Oct-Dec 2013 quarter.

4 BHK & above l The 1BHK category noted a demand of 9 per cent and a supply of 12 8 per cent, both observing a drop of 3 per cent over the previous 9 11 8 DEMAND SUPPLY Jul-Sep 2013 quarter. ANNExUrES VOL3, ISSUE 3; OCT-DEC, FY 2013-14 107 propindex.magicbricks.com CHENNAI

CAPITAL VALUES – LOCALITY WISE CHENNAI Average Listed Residential Apartment Prices

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

Adambakkam 5150 to 6200 Padur 3650 to 4350 Adyar 11850 to 15700 4050 to 4900 Ambattur 3700 to 4500 Pallikaranai 4150 to 4850 3300 to 3750 3750 to 4600 Anna Nagar 9000 to 12100 4950 to 6050 Anna Nagar West 7750 to 9950 Perumbakkam 3850 to 4550 7450 to 9100 3650 to 4250 Avadi 3100 to 3950 Perungudi 5400 to 6300 Besant Nagar 13750 to 17250 Poonamallee 3650 to 4350 Chromepet 4200 to 5300 Porur 4650 to 5850 Guduvanchery 3000 to 3500 RA Puram 14350 to 19750 Iyyappanthangal 3700 to 4150 Ramapuram 5600 to 6650 3750 to 4300 6450 to 8150 Kelambakkam 3200 to 3850 3800 to 4600 Kilkattalai 4350 to 5200 3850 to 4750 10400 to 13350 Sholinganallur 4400 to 5500 KK Nagar 5700 to 7600 Siruseri 3350 to 3750 6800 to 9050 3450 to 3800 Kolathur 4350 to 5650 Sriperumbudur 2700 to 3300 Korattur 5000 to 6400 T Nagar 9900 to 13750 Kovilambakkam 3900 to 4600 Tambaram 3700 to 4200 Koyambedu 5600 to 7150 Tambaram East 3800 to 4350 3450 to 3950 Tambaram West 3550 to 4350 3600 to 4200 3300 to 3900 Madipakkam 4500 to 5450 Thiruvanmiyur 9600 to 12500 Medavakkam 4150 to 4950 Thoraipakkam 4950 to 5800 Mogappair 5900 to 6950 Urappakkam 3150 to 3750 4700 to 5700 Vadapalani 6400 to 8200 Mylapore 11500 to 15950 5600 to 6750 5300 to 6550 3550 to 4300 Nanmangalam 3700 to 4300 Velachery 5900 to 7200 3950 to 4600 Vengaivasal 3600 to 4050 Nungambakkam 11300 to 14400 4900 to 6050 Old Mahabalipuram Road 3750 to 4850 West 7950 to 10900 Oragadam 2850 to 3400

propindex.magicbricks.com VOL3, ISSUE 3; OCT-DEC, FY 2013-14

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DISCLAIMER

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.