FOREWORD

This has been one of the more interesting quarters in the residential real estate market. Data indicates that markets are looking for a sense of direction. Weak sentiment because of economic factors as well as the upcoming elections has dampened investor enthusiasm. However, this is the first time that the end user has shed inhibitions and got into the driver’s seat in the residential property market. Read this quarter’s PropIndex analysis along with the Housing Sentiment Index (HSI). The HSI has been jointly released by Magicbricks and Indian Institute of Management, Bangalore. The first of its kind in the market, the HSI tracks property buyer sentiment across the country by way of detailed questionnaires. It clearly indicates that while the consumer is willing to wait in anticipation of better prices, he is also quite willing to search for the best deals over the next six months.

The number of enquiries indicate strong underlying demand. However, with investors shying away due to a slow market, the end user is using this window of six to eight months to explore the markets at length, search for a property of their choice and then negotiate to get a good deal. Both developers and landlords seem more willing to negotiate in an effort to keep up the sales velocity. In a market driven by end users, consumer preferences come into sharper focus. Apartments emerged as the winner with all cities showing robust demand. Smaller units of 1, 2 and 3BHK were preferred over premium, large apartments. However, demand for premium apartments was driven by a small group of buyers who showed that sentiments had nothing to do with this volume of demand. This being a lucrative category, developers seemed to prefer to build more in this category, thereby creating abundant supply.

The industry would benefit by using statistics to understand consumer sentiment, and be able to navigate basis the direction that markets are likely to take. The volume of stock in every market, if positioned correctly, can be used to bring back the end user. Unlike 2010, when developers had little to woo the anxious consumer with, this time round, they have plenty of stock and a negotiating power to turn the markets around. The question is, can they take leadership and make Real Estate the sector to kickstart a sagging economy?

We hope you benefit from this edition of PropIndex. A complimentary copy of HSI is also included with this report. We would look forward to your feedback – please write in to us at [email protected]. Happy Diwali and best wishes for the festival season.

Sudhir Pai Business Head, Magicbricks.com [email protected] 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. 500,000 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 12 cities (these have GLOSSARY & DEFINITIONS

There is a wealth of information within these pages. For better readability, we have presented some data as tables and others as graphs. Between them, you will find how property markets have performed in the Jul-Sep 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 Apr-Jun 2013 and Jul-Sep 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 2; JUL-SEP, FY 2013-14 propindex.magicbricks.com

NATIONAL PROPERTY INDEX (NPI) JUL-SEP 2013

n Property buyers remained cautious due to sluggish economic growth and looming elections n About 40 per cent demand was for multi-storey apartments across cities n Majority of buyers preferred property worth Rs 30-50 lakh. n About 30 per cent supply was of 800-1200 sq ft apartments followed by Hyderabad at JUL-SEP 2013 an analysis of consumer housing 5 per cent. Mumbai and Delhi sentiments based on survey National Property Index is a registered the maximum drop of across eight cities. weighted average of supply and 4 and 3 per cent, respectively. values across 12 cities in India. In While PropIndex analyses real In spite of slow property the latest quarter (Jul-Sep 2013) estate market performance of the transaction rate, market the NPI witnessed a rise of previous quarter, HSI would offer continues to witness adequate 4 per cent. Of the 12 cities in the insights into potential future enquiries from property buyers, apartment index, majority of the market performance. cites have seen a rise, on the back indicating buyers are scouting for of steadily increasing supply good deals in the market. At IN THIS REPORT: across cities. present, buyers are cautious due to the sluggish economic growth National Property Index...... 1 Bangalore was the biggest gainer and the looming political elections with a rise of 17 per cent. It was in the country. Delhi...... 4 followed by Kolkata with Gurgaon...... 11 9 per cent, Mumbai, Delhi, Pune Despite all uncertainties and and Vadodara witnessed weak sentiments in the market, Noida & Ghaziabad...... 18 property worth between Rs 30-50 4 per cent rise each, Ghaziabad, Mumbai...... 29 Ahmedabad and Hyderabad with lakh continues to top buyer 3 per cent and Gurgaon with preference nationally. Cities Pune...... 36 which buck the trend are Kolkata, 2 per cent. Noida registered a drop Ahmedabad...... 43 of 1 per cent. Gurgaon and Mumbai. In Gurgaon and Mumbai, properties Kolkata...... ,...... 48 On the other hand, Listed Price worth Rs 1-2 crore witnessed Monitor, which largely shows the higher demand, except in Thane ...... 55 capital appreciation/drop within and Navi Mumbai. In Kolkata Hyderabad...... 62 a locality ranges between minus property worth upto 4 per cent to plus 7 per cent. Rs 20 lakh tops demand. Bangalore...... 69 Average property prices remained Vadodara...... 76 upbeat in Bangalore with Read this issue along with the maximum rise of 7 per cent, Housing Sentiment Index which is Annexures...... 81 propindex.magicbricks.com 02 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

between Rs 60 lakh and Rs 1 crore. The Ghaziabad residential market registered a rise of 3 per cent in the City Index as well as in the Listed Price Monitor. The highest demand and supply was noted for properties priced between Rs 40-70 lakh, particularly in localities such as Indirapuram, Vaishali and Crossings Republik. Availability of ready-to-move-in options is mainly fuelling demand in these areas. The Mumbai City Index went up by 4 per cent during the period Jul-Sep 2013 as compared to a rise of 1 per cent in the previous quarter. This is mainly on account NATIONAL PROPERTY INDEX market in the last six months. On of increase of supply in the city. the other hand, Listed Price The Listed Price Monitor dropped l Multi-storey apartments Monitor dropped 3 per cent on the continued to witness active back of marginal drop in average Preferred Localities - Sale demand. Close to 40 per cent capital values in 74 per cent demand was for multi-storey localities in the city. However, apartments across India with localities close to Noida such as IP Locality Rank maximum in Mumbai at Extn, Vasundhara, Mayur Vihar Q2 Q1 94 per cent. and Patparganj in East Delhi and Mumbai 1 1 select pockets in Dwarka, owing Bangalore 2 2 l RBI’s recent measures to to connectivity to Gurgaon, have unwind liquidity tightening Pune 3 3 seen consistent rise in values in measures have been well the past few quarters. New Delhi 4 4 received by the market. Kolkata 5 6 However, the effect on home The Gurgaon City Index rose by Chennai 6 7 loan rates has been negligible. 2 per cent in the Jul-Sep 2013 quarter as compared to a rise of Gurgaon 7 8 l The government’s 4 per cent in the previous quarter, Hyderabad 8 5 consideration to ease Foreign indicating a slow movement in the Noida 9 9 Direct Investment (FDI) norms property market. The Listed Price in the real estate sector may Ghaziabad 10 10 Monitor too, remained stable help in attracting cash flows, Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 while it rose by 2 per cent in the easing out the present Apr-Jun 2013 quarter. It has been beleaguered scenario. Preferred Localities - Rent observed that apartment prices in Ahmedabad City Index rose by select pockets remained up, Locality Rank 3 per cent in the Jul-Sep 2013 despite a slow transaction rate. Q2 Q1 quarter, as compared to a rise of After witnessing an increase of Mumbai 1 1 4 per cent in the previous quarter. 3 per cent in Apr-Jun 2013, the Bangalore 2 2 Residential developments Noida city index dropped by New Delhi 3 4 continue to see regular demand in 1 per cent, while the Price localities along the two major Pune 4 3 Monitor remained unchanged. growth corridors - SG Highway Chennai 5 5 Almost equal number of localities and SP Ring Road. registered rise and drop in Gurgaon 6 7 Delhi City Index rose by 4 per average capital values. This kept Hyderabad 7 6 cent during the Jul-Sep 2013 the price monitor unchanged. In Kolkata 8 8 quarter as compared to a drop of the present quarter, demand and Noida 9 9 supply in Noida was inclined 3 per cent in the previous quarter Ahmedabad 10 10 indicating a slow but stable towards properties priced Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 VOL3, ISSUE 2; JUL-SEP, FY 2013-14 03 propindex.magicbricks.com

National - Consumer Budget Preference

30% 23% 25%

20% 16% 15% 15% 14% 13% 12% 10% 7% 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 by 4 per cent. Drop in average the neighbouring areas kept up the TOP YIELD GROSSERS property prices in premium areas property prices in both outright such as Worli, Prabhadevi, sale and lease in . Gross yield is a ratio of average annual Santacruz West and Khar West led No sign of price correction was rental value to the average capital value to a drop in the listed price witnessed in the residential of the property. Given below are the top yield-grossing localities in each city. monitor. market in the last three months, despite the slow transaction rate. Locality Gross yield The Pune residential market continues to remain upbeat The Hyderabad City Index rose by Bangalore, Marathahalli 4.94% quarter over quarter. The City 3 per cent in Jul-Sep 2013. Rise in Kolkata, Rajarhat 4.61% Index went up by 4 per cent and property values in 77 per cent of Hyderabad, Madinaguda 4.36% Price Monitor by localities pushed the Listed Price Chennai, Urapakkam 4.21% 2 per cent during the period Monitor up. Owing to the Ahmedabad, Vejalpur 3.91% Jul-Sep 2013. Residential Telengana issue, property prices development along the IT were 30-40 per cent cheaper as Mumbai, Parel 3.81% corridors in the Eastern and compared to any other metro Noida, Sector-92 3.74% Western parts of Pune continued despite the well-supported Pune, Viman Nagar 3.09% to be preferred destinations for infrastructure development. Ghaziabad, Indirapuram 2.90% both outright sale as well as lease. The Bangalore City Index rose by Gurgaon, MG Road 2.52% The Kolkata City Index rose by 17 per cent in the Jul-Sep 2013 Delhi, Malviya Nagar 2.36% 9 per cent during the Jul-Sep 2013 quarter, as compared to the quarter. Increase in capital values previous quarter, which reported a CAPITAL GAINS in more than 64 per cent localities 6 per cent drop. With a major combined with a growth in supply number of localities reporting an The table given below indicates in almost 50 per cent of the increase in property values, the maximum increase in capital values in localities pushed the city index up overall Listed Price Monitor each city. by 9 per cent. Drop in capital registered a 7 per cent rise in the Locality % Change values in premium areas such as quarter. Of the total demand, Jodhpur Park and Southern 25 per cent was for properties in Bangalore, Hormavu 10.08% Avenue arrested the growth of the the Rs 40-60 lakh range. A positive Kolkata, Behala 8.96% Listed Price Monitor. sentiment in the IT sector Pune, Hadapsar 8.89% translated into rising property Hyderabad, Banjara Hills 8.86% The Chennai City Index rose by values in Bangalore. 3 per cent during the Jul-Sep 2013 Ahmedabad, Chandkheda 7.37% quarter indicating a positive The City Index for Vadodara rose Gurgaon, Sector-92 7.10% market. Almost 60 per cent of the by 4 per cent during the Jul- Sep Ghaziabad, Lal Kuan 6.93% total localities tracked recorded a 2013 quarter primarily on the back Chennai, 6.81% rise in average capital values, to of healthy supply in the city. register an increase of 3 per cent However, property prices have Mumbai, Borivali West 6.53% in the Listed Price Monitor. remained stable in the last six Delhi, Indraprastha Extn 5.54% Presence of IT/ITeS companies in months with small fluctuations. Noida, Sector-100 5.22% CHENNAI propindex.magicbricks.com 55 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

PROPINDEX - CHENNAI Editorial There is a method in the madness in Chennai’s property market. The city is witnessing intense demand for apartments, clearly a new trend in a city that was obsessed with plotted development. This trend has been so marked that there are areas where such apartments are in short supply. South Chennai areas in proximity to IT hubs that are under redevelopment of plotted areas posted a large number of units which have driven good rental and sale demand. South Chennai led the city in demand and supply. Premium areas such as Adyar were The Chennai City Index and the Price Monitor rose by 3 per cent popular among senior management while peripheral localities such as during the Jul-Sep 2013 quarter indicating a positive market. , Valasaravakkam and The NPI rose by 4 per cent during the same period as compared West were in demand to the 2 per cent rise recorded in the Apr-Jun 2013 quarter. among those looking for more affordable options. Congested areas and over-valued localities are yielding place to newer localities where demand is rising. Key Takeaways proved to be most sought after. While there has been a rise in l Even though the market Velachery, Adyar, demand for traditional localities such remained slow in the last three and , which were as OMR, the demand has shifted quarters, transactions have not preferred for both sale and rent. about 6-8 km away. This is dried up as compared to other characteristic of a slow market where cities such as Delhi-NCR and l Lower capital values, peripheries of localities traditionally in Mumbai. connectivity to IT hubs in demand seem to do well. , proximity to Bangalore The newly masterplanned areas such l The residential market - both Highway, easy accessibility to as Valsarawakam and with outright sales and rental - seems both South and East Chennai good connectivity to commercial and to be the most robust in South and presence of various IT hubs such as Guindy and the Chennai with more and more educational institutes have Bangalore Highway are in demand. buyers showing an inclination pushed up residential demand Units of 2BHK in the Rs 20-40 lakh towards the zone. and thereby prices in budget were preferred. Valsaravakkam and Porur. As in most other cities, Chennai’s l Velachery proved to be the most residential market too is driven by preferred residential location l Since the inclusion of Porur and end-users. This leads to a demand this quarter. Valsaravakkam in the city limits profile driven by ease of access from about two years ago, residential commercial hubs, easy connectivity l As per the data with values have risen by 30-40 through high-speed networks such as Magicbricks, several localities per cent in these localities. metro, flyovers and expressways and in the South have witnessed a inclusion in municipal limits. consistent rise in capital values l Buyer demand at the city level this year. These include OMR, was largely inclined towards A robust rental market indicates the presence of serious end-users. Madipakkam, Pallikaranai, properties priced between Chennai’s users have given a thumbs- Valasaravakkam and Tambaram Rs 20-40 lakh and 2BHK units up to those localities where values West with an increase of continued to be the most have remained reasonable. In a 8-45 per cent. preferred configuration. couple of localities, rising values have not detracted from the profile where l As compared to the locations l Unlike other metros, supply of there has been easy access to IT along the OMR, those located multi-storey apartments in the hubs. within a distance of 6-10 km city fell short of the existing Affordable properties were from the stretch were demand. Supply in the market concentrated in in the particularly popular as was more inclined towards below Rs 20 lakh range where residential options. These single floor units and plotted demand has been robust. included locations such as developments. VOL3, ISSUE 2; JUL-SEP, FY 2013-14 56 propindex.magicbricks.com CHENNAI

LISTED PRICE MONITOR RENT MONITOR

3% l Almost 60 per cent of the total localities tracked l Nearly 60 per cent of the localities tracked recorded recorded a rise in capital values indicating a positive a rise in rental values during the Jul-Sep 2013 market pushing up the Listed Price Monitor. quarter reflecting a robust rental market. l Locations in the southern part of the city such as l Besant Nagar recorded a rise of almost 12 per cent Valsaravakkam, Thoraipakkam, and OMR recorded in the rental values during the present quarter. The the maximum capital appreciation in the range of location is in demand from HNIs and foreign expats 5 -7 per cent. High buyer demand in South Chennai who prefer premium residences. However, limited owing to the IT belt has resulted in this rise. supply has pushed up the rental values. l A 3-4 per cent drop in capital values was witnessed l also recorded a healthy rise of more in certain locations such as Chrompet, than 7 per cent in rental values. Its strategic location , and . on the OMR, comparatively lower rental values and presence of several educational institutions has l Kolathur gained popularity due to its proximity to given an impetus to the rental demand from students several IT parks such as India Land IT Park. at these institutions.

YIELD METER

Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Velachery 16 6,450 3.02% Medavakkam 11 4,375 3.02% OMR 13 4,075 3.83% Madipakkam 10 4,775 2.58% Pallikaranai 11 4,450 2.97% Thoraipakkam 15 5,575 3.23% 22 9,475 2.72% T.Nagar 23 12,625 2.14% Porur 12 4,950 2.79% Urapakkam 12 3,350 4.21%

l During the Jul-Sep 2013 quarter, the Magicbricks Parks. Rental values have also been rising here yield meter ranged between 2.14 and 4.12 per cent. thereby, pushing up the yield.

l Urapakkam recorded the highest gross rental l Even though OMR dropped from its top position, yield, displacing OMR which had been recording the stretch continued to offer nearly 4 per cent the maximum yield quarter-on-quarter. This may rental returns. However, more options for rental be attributed to the huge rental demand in accommodation have pushed the yield down. Urapakkam owing to its proximity to several IT CHENNAI propindex.magicbricks.com 57 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

PREFERRED LOCALITIES

SALE RENT

Locality Capital Rank Locality Rental Rank Values Q2 Q1 Values Q2 Q1 OMR 3750 to 4650 1 2 Velachery 14500 to 18000 1 1 Velachery 5950 to 7350 2 1 Adyar 20500 to 24500 2 2 Medavakkam 4100 to 4900 3 3 Thiruvanmiyur 19500 to 23500 3 3 Porur 4500 to 5750 4 5 Sholinganallur 13500 to 16500 4 4 2950 to 3550 5 4 Medavakkam 10000 to 12000 5 5 Pallikaranai 4150 to 4950 6 8 24000 to 29000 6 6 Madipakkam 4450 to 5350 7 6 24000 to 28500 7 9 Adyar 11500 to 16250 8 9 Madipakkam 9500 to 11000 8 - Tambaram West 3450 to 4050 9 7 Porur 10500 to 12500 9 8 Kolathur 4150 to 5150 10 - 13000 to 15500 10 10 Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 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 positions as the most preferred rental destinations ten preferred localities falling in this zone. in the Jul-Sep 2013 quarter. Presence of well planned residential layouts, wider roads as compared to l OMR, Velachery and Medavakkam were the top other parts of the city, availability of several schools three preferred residential localities. While OMR is and colleges along with ample medical facilities in demand due to availability of ready-to-move-in render these locations preferred residences. properties, proximity to OMR makes Velachery and Medavakkam attractive for IT professionals. l Proximity to IT zones such as the near Adyar ensures rental demand from the IT l Pallikaranai is also gradually gaining prominence professionals. Further, good connectivity from all as a preferred residential location, moving up two parts of the city is an added boost. For instance, positions on the list of preferred localities for sale. Thiruvanmiyur is connected to the OMR on one end l Pallikaranai and Medavakkam have been in high and to the ECR from the other end. demand owing to accessibility and connectivity to l Lower rental values and easy accessibility to IT major parts of the city. Infrastructure development hubs augers well for rental markets of such as extension of MRTS, enhancement of road Sholinganallur and Medavakkam. connectivity to GST and the proposed monorail project are boosting the realty market here. l In spite of high rental values, proximity to large office and commercial set-ups drives the rental l Connectivity to the IT hubs of Guindy and easy demand in locations such as Mylapore and accessibility to both South and East Chennai has Nungambakkam. resulted in Porur moving up one spot on the list.

l South Chennai accounts for over 50 per cent of the total residential demand and supply in the city.

l OMR, GST and ECR are the most active growth corridors in the city.

lDemand outstrips supply in marginally.

l West Chennai was the least preferred residential area with less than 5 per cent demand.

Above 50% 25-50% 15-25% 5-15% Less than 5% VOL3, ISSUE 2; JUL-SEP, FY 2013-14 58 propindex.magicbricks.com CHENNAI

EXPERT SPEAK Q&A Developer Tambaram, Madipakkam, Velacherry, NH-4 and GST have developed in the last three quarters because of increased demand. Chennai has actual buyers which cuts out the scope for speculation. Growing infrastructure and with the Suresh Jain actual buyer market looking good, it is safe to say Managing Director M. Arun Kumar Vijay Shanti Builders Chennai will do well in the coming months too. Founder & MD Casa Grande Pvt Ltd CREDAI Member Broker Which areas would be benefitted by There is a huge demand in the market as we are the metro rail? Will there be any getting regular enquiries. However, at the same immediate impact on prices? time enough transactions are not happening. Once the Metro becomes operational This is leading to a glut. Builders keep launching areas like Parrys and Koyembedu will be benefitted.There are two lines projects without clearing the existing stocks, coming up in Chennai - between AV Murali leading to over-supply in some of the areas. OMR MD, Green Earth Property to Airport and Services Pvt Ltd. is a classic example of this. Chennai Central station to St.Thomas Mount. Property prices in suburbs like Thriuvatriyur and are going to Consultant be high due to the rail connectivity. In the past decade, the Chennai property market Is there an over-supply of has seen a fair mix of growth in industrial as well multi-storey apartments? as IT/ITeS segments. The recent economic Few pockets have witnessed an over downturn has hit both segments. The effect has supply. Increased supply of multi- been seen largely in the suburban pockets, storey units is because of the demand Anurag Jhanwar | including distant areas of , GST, from the market. The buying power of Director, CRISIL Real Estate Star Ratings and OMR. City locations have done better. customers has also increased over the years and people are looking for more comfort and luxury. R E A L T Y N E W S Which is the most preferred budget The advent of Metro Rail in Chennai is expected to bring a fresh lease of growth and configuration in the city? in the city. The Chennai-Bangalore growth corridor, which is poised to become Rs 40-60 lakh is considered to be the the largest industrial cluster in Asia, is leading several industrial majors to set- ideal budget in Chennai. Also, Chennai up their base. has evolved from a 2BHK market to a Chennai-Bangalore Corridor poised for development 3BHK market. The Chennai-Bangalore growth corridor will change the skyline of the entire Western Are there any new areas of growth region in the city. The growth corridor will encompass the Chennai-Ranipet-Bangalore coming up in Chennai? area. A number of industries have already been established up to Ranipet. The largest auto and electronic corridors are also coming up in the Sriperumbudur area. In terms of OMR and peripheries of OMR continue industrial development and foreign direct investment, this corridor has over 400 foreign to be the most desired locations. companies and 30 Fortune-500 companies. These locations have good n Magicbricks.com Bureau infrastructure and real estate projects that will appreciate better in the future. Upcoming metro to push property values up to 30% in Chennai What are your expectations from the The two major factors that significantly impact the real estate market in India are either the inception of IT companies or the metro connectivity. Delhi-NCR, Bangalore and market in the future? Kolkata got a facelift due to the Metro. And now, the Metro Rail is all set to change the I feel that the FSIs need to be landscape of Chennai. The upcoming metro will impact both North Chennai that mostly increased in order to accommodate houses manufacturing units and South Chennai, which is an IT hub. the growing demand. Faster approvals Magicbricks.com Bureau n are required so that projects are To read full story and more news go to www.content.magicbricks.com delivered on time. CHENNAI propindex.magicbricks.com 59 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

DEMAND - SUPPLY ANALYSIS Buyer demand analysis includes city and zone level analysis of three parameters - Budget, Configuration and Property Types. Each of these have been analysed from the supply and demand perspective. These give insight into a city’s real estate profile in the quarter.

Budget Wise Analysis City Level Analysis

Buyer demand analysis includes city and zone level analyses of l At the city level demand and three parameters - Budget, Configuration and Property Types. supply was noted to be the Each of these have been analysed from the supply and demand maximum for properties in the perspective. In overall, these analyses provide insight into a budget range of Rs 20-40 lakh. city’s real estate profile in the quarter. While supply saw a rise of 4 per cent in the Jul-Sep 2013 Budget wise Analysis - City Level quarter, demand rose marginally by 1 per cent. DEMAND SUPPLY (Apr-Jun 2013) l An over-supply was noted for 40 40 (Jul-Sep 2013) 33 34 (Apr-Jun 2013) properties worth below Rs 20 lakh ) (Jul-Sep 2013) ) 30 % % with demand being 8 per cent ( 30 ( 30 e e 25 26 g g a 23 23 a lower than availability. t t 22 21 n n 20 e e c c r 20 r 20 e 16 16 16 e p p 15 l A healthy demand and supply ratio

14 14 14 n n 13 i 12 i

12 s s was also noted for the budget range e e r 10 r 10 u u g g i i of Rs 40-60 lakh. F F 0 0 <20 20-40 40-60 60-100 100 & <20 20-40 40-60 60-100 100 & Zone Level Analysis above above l The Rs 20-40 lakh category Figures in Rs lakh Figures in Rs lakh remained the most preferred budget range across all zones Budget wise Analysis - Demand Q1 (Apr-Jun 2013) Q2 (Jul-Sep 2013) except in Central Chennai. 120 Demand was more inclined Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 towards Rs 40-60 lakh category in 100 10 10 12 12 23 23 6 the central parts. 10 15 13 ) 16 14 15

% 17 ( 19 e 80 26 23 l However, supply for the Rs 20-40 g 23 24 19 19 a t

n 33 lakh category fell short of the e

c 30 r 60

e 35 demand by 5-12 per cent across p 35 37 35 26 23 n i different zones. South offered the s 40 e r

u 32 35 highest supply in this budget range g i 22 F 23 20 20 19 particularly in localities such as 17 13 Pallikaranai and Medavakkam. 0 6 South Chennai North Chennai Central Chennai West Chennai l Budget properties priced up to Rs <20 lakh Rs 20-40 lakh Rs 40-60 lakh Rs 60 lakh-1 crore Rs1 crore and above Rs 20 lakh were the most popular in West Chennai. Demand for the Budget wise Analysis - Supply Q1 (Apr-Jun 2013) same inched up marginally during Q2 (Jul-Sep 2013) the present quarter. Nearly 60 per 120 cent supply in the West was also Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 concentrated in this segment, 100 13 13 17 14 38 34 6 9 9 resulting in an over-supply of over ) 14 14 11

% 9 ( 12 9 20 per cent.

e 80 g 25 13 20 a 16 t 27 17 22 n

e 24 l North Chennai recorded the

c 28

r 60

e 26 60

p 58

second highest supply for n i 31 22 s 40 32 properties priced below Rs 20 lakh e r 19 u

g 34 i registering a rise of 6 per cent

F 28 20 15 from the previous quarter. 17 16 14 Localities such as OMR, 0 South Chennai North Chennai Central Chennai West Chennai Thirunandravur and in the Rs <20 lakh Rs 20-40 lakh Rs 40-60 lakh Rs 60 lakh-1 crore Rs1 crore and above North generated maximum supply. VOL3, ISSUE 2; JUL-SEP, FY 2013-14 60 propindex.magicbricks.com CHENNAI

Property Wise Analysis City Level Analysis

The first graph, Property-wise Analysis – City Level, depicts l Even though multi-storey how demand and supply statistics for different property types apartments were the most have changed at the city level over a period of six months. preferred property type in Chennai, supply for the same fell The Property wise graphs by Demand and Supply compare short by 14 per cent during the buyer requirements and the existing listings for various Jul-Sep 2013 quarter. property types in different zones in the six-month period from l Supply at the city level was more April 2013 to September 2013. inclined towards single floor units and residential plots. While a slight Property wise Analysis - City Level rise of 4 per cent was noted in the availability of single floor units, DEMAND SUPPLY supply for plots saw a drop of 3 per 50 (Apr-Jun 2013) 50 (Apr-Jun 2013) cent during the present quarter. (Jul-Sep 2013) (Jul-Sep 2013) 40 ) 37 ) l Even though residential plots were

% 40 % 40 ( (

e e 34

g 33 g the second most preferred property

a a 31

t t 30 n n

e 30 28 e 30 type in the city, demand dropped by c c 26 26 26 r r e e

p p 5 per cent from the previous

n n i i 18 18 s 20 s 20 quarter. e e r r u u g g i i

F F 9 10 8 9 10 9 Zone Level Analysis 4 4 5 4 l Localities in Central Chennai 0 0 Multistorey Single Residential Residential Villa Multistorey Single Residential Residential Villa registered the highest demand for apartment floor house plot apartment floor house plot multi-storey apartments as compared to other zones. Locations Property wise Analysis - DEMAND Q1 (Apr-Jun 2013) such as Porur, T Nagar and Q2 (Jul-Sep 2013) KK Nagar saw high buyer interest 120 for apartments. Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 l However, supply of apartments in 100 26 16 35 31 30 12 53 47 Central Chennai lagged behind the ) % ( 22 existing demand with a shortfall of e 80 20 g a t 28 nearly 20 per cent. n

e 15 25 8 c 10

r 60 15 e p 9 55 l The western part of the city saw n 53 i 9 7 17 s 40 6 17 e significant demand and supply for r 39 u 36 37 g i 35 7 residential plots. While nearly F 20 22 24 50 per cent of the buyer interest 0 was inclined towards these units, South Chennai North Chennai Central Chennai West Chennai supply overshot demand by more Multistorey apartment Single floor Residential house Residential plot Villa than 20 per cent this quarter.

l In West Chennai locations such as Sriperumbudur and Property wise Analysis - SUPPLY Q1 (Apr-Jun 2013) Q2 (Jul-Sep 2013) Bypass Road registered the highest supply for residential plots 120 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 l Demand for single floor units saw 100 5 6 12 25 22 37 42 13 72 69 increased buyer interest with a rise )

% of 1-20 per cent across zones except ( 17 e 80 13 g

a in South Chennai. The maximum t n

e 9 7

c 35 33

r 60 14 rise in demand was noted in the

e 36 11

p 31

n western part of the city. i 21 22 s 40 e

r 5

u 34

g 6 i 30 33 17 l Supply for single floor units also F 30 28 20 20 9 displayed an upward trend in all 7 8 zones except in Central Chennai. 0 South Chennai North Chennai Central Chennai West Chennai Again, the western part of the city recorded the highest rise in supply. Multistorey apartment Single floor Residential house Residential plot Villa CHENNAI propindex.magicbricks.com 61 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

BHK Configuration Analysis City Level Analysis

The City BHK Configuration graphs represent demand and l As witnessed in the Apr-Jun 2013 supply of 1, 2, 3 and 4BHK apartments in the city in two quarter 2BHK units remained the consecutive quarters – Apr-Jun 2013 and Jul-Sep 2013. preferred configuration in the present quarter as well with more The BHK Configuration graphs by Demand and Supply than 60 per cent demand. compares buyer requirements and the existing listings for l Supply of 2BHK units also kept various configurations in different zones in the six-month pace with demand registering period from April 2013 to September 2013. nearly 60 per cent availability at the city level.

BHK Configuration - City Level l Demand and supply for 3BHK DEMAND SUPPLY units, the second most preferred configuration, was also found to be 80 (Apr-Jun 2013) 80 (Apr-Jun 2013) (Jul-Sep 2013) (Jul-Sep 2013) aligned with each other. 62 ) ) 61 % % 59 ( ( e e 60 60 56 Zone Level Analysis g g a a t t n n e e c c l Almost uniform demand and r r e e p p 40 40

n n supply was observed for 2BHK i i

30 s s 26 27 28 e e r r units across different zones with at u u g g i i F F 20 20 least 50 per cent buyer interest and 11 9 7 77 availability recorded in all zones. 22 6 0 0 1 BHK 2 BHK 3 BHK 4 BHK & 1 BHK 2 BHK 3 BHK 4 BHK & l Porur in Central Chennai, above above Kolathur in the North, OMR and Pallikaranai in the South were the major contributors to the BHK Configuration - DEMAND Q1 (Apr-Jun 2013) Q2 (Jul-Sep 2013) inventory of 2BHK units in the city in the current quarter. 120 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 l Demand for 3BHK units inched up 100 17 26 26 25 27 28 31 24 by 2-7 per cent in all zones except ) %

( in South, with the maximum rise

e 80

g 68 a t 62 recorded in the West. However, the n 63 63 61 57 58

e 61 c

r 60 highest demand was seen in e p

n

i Central Chennai in locations such

s 40 e r as Porur, KK Nagar and T Nagar. u g i F 20 l On the contrary supply for 3BHK 14 10 9 12 9 12 9 12 units saw a downward trend this 0 South Chennai North Chennai Central Chennai West Chennai quarter with a drop of 2-9 per cent observed across all zones except in 1 BHK 2 BHK 3 BHK 4 BHK & above central parts of the city.

l Demand for smaller homes of BHK Configuration - SUPPLY Q1 (Apr-Jun 2013) 1BHK also saw a negative trend Q2 (Jul-Sep 2013) with a drop of 1-3 per cent noted 120 across all zones. Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 100 6 6 7 7 12 11 8 6 l Buyer interest for luxury 30 27 25 ) 27 25 33 34 % 31 properties priced above Rs 1 crore (

e 80 g

a remained subdued across the city. t n

e 60 60 58

c 57 Supply in the category was also

r 60 58 e

p 51 50 49 limited with Central Chennai n i

s 40 e recording the highest availability. r u g i F 20 l Porur in Central Chennai 9 11 particularly witnessed a healthy 0 6 7 9 8 6 6 South Chennai North Chennai Central Chennai West Chennai supply of properties priced above Rs 1 crore. 1 BHK 2 BHK 3 BHK 4 BHK & above ANNExUrES CHENNAI propindex.magicbricks.com 89 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

CAPITAL VALUES – LOCALITY WISE CHENNAI Average Listed Residential Apartment Prices

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

Adambakkam 5400 to 7550 Nungambakkam 10450 to 12850 Adyar 11500 to 16250 OMR 3750 to 4650 14150 to 18100 2800 to 3300 Ambattur 3750 to 4550 Padur 3600 to 4350 3500 to 4050 Pallavaram 4150 to 4900 9100 to 12550 Pallikaranai 4150 to 4950 Avadi 3500 to 4150 3550 to 4400 Besant Nagar 12200 to 15650 4800 to 5700 4350 to 5050 3950 to 4600 4150 to 5150 3850 to 4400 11050 to 14650 Perungudi 5200 to 6200 Guduvancheri 2950 to 3550 Poonamallee 3500 to 4050 Iyyappanthangal 3650 to 4200 Porur 4500 to 5750 3900 to 4400 Ramapuram 5200 to 6650 3350 to 4100 6550 to 8250 Kilkattalai 4450 to 5100 6350 to 8400 9400 to 11500 3750 to 4700 6900 to 9200 3600 to 4500 Kolathur 4150 to 5150 Sholinganallur 4500 to 5550 Korattur 5350 to 6850 3200 to 3800 Kovilambakkam 3850 to 4450 3450 to 3800 5700 to 7400 Sriperumbudur 2800 to 3300 Madambakkam 3600 to 4250 T Nagar 11450 to 14700 3500 to 4350 Tambaram 3500 to 4150 Madipakkam 4450 to 5350 Tambaram East 3800 to 4550 2350 to 3100 Tambaram West 3450 to 4050 Medavakkam 4100 to 4900 3400 to 3650 5900 to 6800 Thiruvanmiyur 8450 to 11300 Mogappair West 5050 to 6600 Thoraipakkam 5200 to 6200 4550 to 5500 Urapakkam 3150 to 3700 Mylapore 10300 to 14150 Valasaravakkam 5900 to 6950 5250 to 6250 3200 to 3800 Nanmangalam 3600 to 4200 Velachery 5950 to 8000 3900 to 4700 Vengaivasal 3650 to 4200 5700 to 6400 5400 to 6600

propindex.magicbricks.com VOL3, ISSUE 2; JUL-SEP, FY 2013-14

CONTACT US PROPINDEX TEAM

l Post your feedback to - l Content & research: E Jayashree Kurup, propindex @timesgroup.com Dipti Tandon, Subodh Kumar, Vikram Jethwani, rishab Jain, Sruthi Kailas, Shradha Goyal, l Join our discussion forum at - Bhawna Mongia, renu Arya, openhouse.magicbricks.com Aradhana Mozumdar, Girish Bindal, Puneet Kukreja & Bikash Kumar. l For business enquiries - [email protected] l Layout Design: Harsha Khattar

l Cover Page Design: raghav Krishnan & rahul Nair

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.