Price Trends Growth Drivers Supply Analysis
Total Page：16
File Type：pdf, Size：1020Kb
InsiteQuarterly Real Estate Analysis for MUMBAI October - December 2015 Price Trends Growth Drivers Supply Analysis INTRODUCTION The 99acres.com Mumbai Insite report brings to you Capital Growth major movements in the real estate market of the city, in Oct-Nov-Dec 2015 as compared to Jul-Aug-Sep 2015. The report not only captures the significant trends across various localities in Mumbai, but also brings to you the analysis and the insights that will make this report valuable for investors and end users. The report also Thane includes an in-depth supply analysis to enable sellers 0% Kalyan and buyers determine the direction of the market. Kalyan Content City-Highlights: 06 Navi Mumbai MMR Navi Mumbai Price Trend Analysis: MMR- Central Suburbs, Andheri-Dahisar, 0% Navi Mumbai Harbour, South and South West 07 2% Mumbai Navi Mumbai 08 0% Thane and Beyond 09 Supply Analysis: 10 City Insite Report Methodology Oct - Dec 2015 Navi Mumbai outperforms other zones; We have reported quarterly price movement of capital and investors pin hopes on rental values measured in per square feet for the analysis of Mumbai’s residential market. Effort has been made to NAINA provide comparable and accurate city level data, since prices and rents are floating and at any point may vary from the actual numbers. 99acres Insite 2 3 Realty Round-up Capital Rental Values Values Supply Delhi NCR Delhi NCR Mumbai Kolkata Bangalore Chennai Mumbai Pune Pune Hyderabad Hyderabad Chennai Bangalore Kolkata * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com 99acres Insite 4 5 Mumbai Metropolitan Region (MMR) - (Central Suburbs, Andheri-Dahisar, Harbour, MUMBAI South & South West Mumbai, Mira Road & beyond) City Highlights Capital Analysis Rental Analysis Despite announcements of several road and metro projects, Mumbai’s property market plateaued Top Performers in MMR (Capital Values) • The residential rental landscape of MMR had a under the weight of rising construction costs, demand-supply mismatch and snail-paced infrastructural successful story to narrate. The average values climbed growth. While keeping buyers at bay, these factors impelled the realty graph of the financial capital to by a notable margin of four per cent in Oct-Dec 2015, as dip insignificantly from the Jul-Sep quarter to Oct-Dec 2015. Charkop compared to the same quarter in 2014. 4% Bandra (West) 4% • Sakinaka in Andheri East clocked an enormous rise of • With the exception of the south west localities, the 17 per cent in rental values, year-on-year, on the back Pali Hill 5% 10% property landscape of the Mumbai Metropolitan Region Q-o-Q Price Index Vasai Road of metro connectivity. In fact, the Andheri to Sakinaka (MMR) has delineated a downturn, as a result of lofty metro corridor is one of the most popular routes, which Byculla 5% price tags. witnesses an average of over 25,500 commuters per day. • Navi Mumbai added yet another feather to its cap with • One of the biggest employment generating locales of Jan-Mar’15 Chembur the City and Industrial Development Corporation (CIDCO) 2% (East) 6% 8% Mumbai, Lower Parel, followed Sakinaka closely, with Kanjur Marg a rental appreciation of 16 per cent in the same time launching Maharashtra’s first smart city project. (West) frame. Even capital sentiments in this locality have • The frequent policy changes in Thane’s real estate Hiranandani Apr-Jun’15 7% lifted due to the Brihanmumbai Municipal Corporation’s market and habitual stonewalling of core stakeholders 1% Gardens - Powai (BMC) endeavour to transform the area into a when drafting vital industry guidelines, dampened 8% 7% Boisar smart city. developers’ sentiments. Vikhroli (East) Jul-Sep’15 • Jogeshwari (West), where average rental values in • Focussed on improving the metro connectivity in 1% the last one year escalated to the tune of 14 per cent, the region, the Maharashtra government announced had the connecting bridge between the locale and completion of the Seepz-Kanjur Marg line by 2018, the Oct-Dec’15 • The downhill trajectory from a trifling growth of one per Goregaon (East) to thank, which eased traffic flow Andheri (E)-Dahisar (E) and Dahisar-DN Nagar lines by 0% cent in Jul-Sep 2015, to stagnancy in Oct-Dec 2015, is greatly and reduced bottlenecks at peak commutation 2019, and the Colaba-Bandra-SEEPZ stretch by 2022. attributed to the prodigious gap between a household’s hours between the east-west regions. • In addition, the highway infrastructure is set to receive a average annual income in Mumbai (around Rs 7.5 lakh per • Rental rates in Chandivali and Powai in the Central massive fillip with the state government planning to pump annum) and the price of inventory in MMR (Rs 1 crore Mumbai suburbs witnessed a decent jump of 12 per Rs 28,000 crore in 21 projects spanning 1,500 km, in 2016. and above). cent between Oct-Dec 2014 and 2015. The growth in • Taking a colossal step towards promoting real estate • Vasai Road, a locality beyond Mira Road, saw capital values is attributed to the excellent connectivity to the transparency, the state government would grant new *The graph represents Q-o-Q change in average capital values in Mumbai values clocking a surge of 10 per cent in Oct-Dec 2015, the east-west suburbs facilitated by the Jogeshwari-Vikhroli building permissions and conduct concurrent audits via highest in MMR. The locality’s growth is being attributed to Link Road (JVLR) and the LBS Marg. e-platform starting January 2, 2016. the possibility of enhancement in rail infrastructure. • Competitive rental rates have steered IT firms towards • In lieu of slashing property prices, developers condensed Navi Mumbai, leaving MMR to be dominated by the • Vasai Road was followed by another locality beyond Top Performers in MMR (Rental Values) apartment sizes to maintain affordability. Flat sizes in banking, financial services and insurance (BFSI) sector. Mira Road, Boisar; and Kanjur Marg (West) in Central Kanjur Marg (West) the city have been reduced by 26.4 per cent between In fact, over 75 per cent of Navi Mumbai‘s office Mumbai suburbs, each of which recorded an average 2010 and 2015. 9% landscape is occupied by IT/ITeS firms. rise of eight per cent. Powai 10% • The peripheral industrial town of Boisar enjoyed the Bhandup (West) 10% 17% Sakinaka advantage of being a low-cost area. The locality offers affordable housing inventory from reputed builders. Raheja Vihar 10% Properties here are priced around Rs 3,500 per sq ft, vis-à- vis the five digit price tags in the central locales of Mumbai. KEY INFLUENCERS • Kanjur Marg (West) owes its escalating values to the recent Chandivali 11% 16% Lower Parel improvement in rail infrastructure and the Mumbai Metro Upcoming Navi Demand supply Launch of CIDCO’s Launch of premium Rail Corporation (MMRC) prioritising Seepz-Kanjur Marg Mumbai Airport mismatch in the MMR smart city project in residential projects in Metro corridor. Marol 11% Influence Notified Area Navi Mumbai Thane • Anticipation of a 40 km metro route, connecting Wadala- 14% Jogeshwari (NAINA) Ghatkopar-Thane-Kasarvadavali, infused cheer in Wadala. Kanjur Marg (East) 12% (West) However, the persistent delay in infra development led to the realty graph plummeting by three per cent this quarter. *Rental values represent yearly change 99acres Insite 6 7 Navi Mumbai Thane & Beyond Capital Analysis Rental Analysis Capital Analysis Rental Analysis Top Performers in Navi Mumbai (Capital Values) • A year-on-year study revealed that Navi Mumbai’s rental Top Performers in Thane & Beyond (Capital Values) • Maintaining its growth pace on the rental charts, market witnessed an unanticipated growth of seven per Thane clocked an average rise of four per cent cent in Oct-Dec 2015 over the same quarter last year. between Oct-Dec 2014 and 2015. The state Airoli Hiranandani Meadows A substantial extent of credit for this surge goes to the government’s endeavour to improve road and 1% 3% Dronagiri 2% presence of IT/ITeS firms, which were instrumental in Waghbil 4% civic infrastructure in the region, coupled with the 9% attracting workforce, thus increasing demand for affordability quotient, sustained sentiments. Nerul 2% Adharwadi 4% 6% Sector 20, houses on rent. Patlipada Kamothe • Anand Nagar’s rental landscape witnessed a Kharghar 3% • Boasting of a rise of 20 per cent, New Panvel contributed Vasant Vihar 4% remarkable hike of 10 per cent in Oct-Dec 2015, significantly to the landscape’s growth. However, the vis-à-vis the same quarter last year. The locality surge does not come as a surprise since the region has owns its rental demand to its strategic location at Taloja strong civic infrastructure and is well-connected to Dombivli 4% a cross junction road, which facilitates quick travel 4% 8% (West) 5% Vichumbe Mumbai and other parts of the state via a network of Kapurbawadi to Kolshet Road via the locality. Furthermore, the roads, namely, the Mumbai-Pune Expressway and the Thane Municipal Corporation proposed the Kalamboli 4% Uran-Panvel Road. Since the area is located at an easy Khopoli 4% construction of a foot overbridge along the distance of 11 km from the Navi Mumbai Airport, it will Eastern Express Highway to ease travel for 5% continue being one of the preferred localities of the 5% cyclists and pedestrians. 4% 5% Bhiwandi Karanjade Kolshet Road Ulwe tenant community in the city. • Rents in Pokharan Road recorded a rental hike of 10 • Ulwe recorded a jump of 17 per cent in rental values in per cent in the last one year. The long-pending issue Oct-Dec 2015, vis-à-vis 2014. With the state government of broadening Pokharan Road No.1, which will ease • Replicating last quarter’s growth trajectory, the real estate of Maharashtra adopting the ‘Housing for All’ scheme • Despite a slew of infrastructure improvements such as bottlenecks at Vartak Nagar junctions, has added to landscape of Navi Mumbai offered some breather after the and aiming to build 19 lakh low-priced houses by 2022, Wadala-Ghatkopar-Thane metro corridor, Thane’s property the rental flavour of the locality.