FOREWORD PropIndex entered the fourth year of operations. In the first issue of the series, PropIndex reflected the cautiously positive consumer sentiment with the National Property Index rising by 1 per cent in the Apr-Jun 2014 quarter. The City Index values too, remained even across cities with a marginal increase or drop of 1 per cent, except in Delhi. Demand for property in the Upto Rs 20 lakh dropped across the country, contrary to the industry buzz that this is undersupplied and in greater demand. The 2BHK unit remained the most popular category across cities, reflecting the aspiration of urban dwellers to own a property that would match their lifestyles. The most preferred price range remained Rs 30-50 lakh, where supply was in plenty and the budget was within reach of the middle class, which remained out of the market for a few quarters. Luxury properties, though in greater demand, remained over-supplied as developers across the country chose to build in this category. As more units hit the market, consumers have started choosing locations, budgets and conveniences in this category. Luxury values across cities have been included as a separate annexure. Rental values either dropped or stabilised in the quarter. The percentage growth in rental values was arrested as consumers again started looking for the buy option. Unlike the previous quarter, where rental values rose by 5-10 per cent, in this quarter, it dropped by upto 5-6 per cent, across cities. Demand preferences remained the same as in the previous quarters but was not evenly spread across the city. Locations near economic corridors continued to post greater demand. However, unlike the previous quarter, besides IT, the manufacturing sector too, drove demand in select cities such as Chennai. In Mumbai, the commercial hubs of the Bandra-Kurla Complex and even Thane drove demand. The completion of infrastructure projects such as the Santa Cruz-Chembur Link Road and the the Metro Phase-I from Versova to Ghatkopar, which eased connectivity to the commercial hubs, also contributed to change in demand patterns. The Union Budget of 2014-15 presented recently, has addressed the housing market’s concerns in many ways. It has featured budget housing, finance issues, township development road map and development of smart cities as part of the main Budget. While the outcome will take a while, the urban infrastructure and housing provisions are expected to boost sentiment. These are exciting times and change is in the air. Share your views on this report and how we could make PropIndex even better. Write in at [email protected]. Sudhir Pai Business Head, Magicbricks.com NOTES VOL 4, ISSUE 1; APR-JUN, FY 2014-15 propindex.magicbricks.com NATIONAL PROPERTY INDEX (NPI) APR-JUN 2014 n Of the 12 cities 9 showed minor changes in the City Indices, while rental market showed subdued trends in majority of the cities n Properties worth upto Rs 30 lakh recorded a significant drop in demand, whereas, properties worth above Rs 30 lakh, Source: Magicbricks.com across the budget categories, witnessed APR-JUN 2014 Index values. This led to a small a rise rise of 1 per cent in the NPI. In the Apr-Jun 2014 quarter, no n Demand for 2BHK Bangalore, Chennai, Gurgaon, major change was recorded in the units rose by 1-5 per respective City Indices, except Kolkata and Pune noted a small rise of 1 per cent in the City cent across the cities, Delhi, which registered a drop of except Gurgaon 4 per cent. All other Indices Index. On the other hand, Noida, exhibited minus 1 to plus Ghaziabad, Vadodara and 1 per cent change, indicating a Mumbai City Indices remained government has announced a slew slow market. No significant unchanged. Ahmedabad and of measures to infuse fresh life increase was noted in supply, Hyderabad showed a small drop of into the real estae sector. showing a cautious approach. 1 per cent. Of the 12 cities tracked, Pune and Ghaziabad recorded the In this edition of the PropIndex, NPI is a weighted average of lowest number of localities with a we have also included Vadodara supply and values across 11 cities drop in the average capital values. as an independent city. The in India. Average capital values residential market of Vadodara across cities showed a range The new government has laid remained stable, with maximum bound movement. On the other special emphasis on the real development in and around the hand, unlike the previous quarter, estate sector in the Union growth corridors such as Old average rental values exhibited a Budget 2014-15. Padara Road, Sama Savli Road, drop. This resulted in a marginal With the modified version of Real Waghodia Road and Gotri Road. rise or stable rental values in the Estate Investment Trusts (REITs), last six months. the development of IN THIS REPORT: Lack of policy favourable for the 100 Smart Cities, reducing the size National Property Index...............1 and capital requirements of real estate and no reduction in the Kolkata......................................4 home loan interest rates after the projects eligible for FDI, formation of the new government launching affordable housing Annexures.................................13 also impacted sentiments, schemes to proposing additional Luxury......................................14 contributing to the stable City tax incentives on home loan, the propindex.magicbricks.com 02 VOL4, ISSUE 1; APR-JUN, FY 2014-15 Unlike the drop of 1 per cent in the Jan-Mar 2014 quarter, the Ghaziabad City Index also remained unchanged. The Listed Price Monitor recorded a drop of 1 per cent. Unlike other parts of the Delhi-NCR, Ghaziabad posted a rise between 1-3 per cent in capital values. Lal Kaun at 11 per cent was an exception. Over 65 per cent of residential localities tracked in the city witnessed a rise in the average capital values. This arrested the fall of the City Index inspite of slow uptake in the residential market. The Mumbai City Index remained unchanged in the Apr-Jun 2014 quarter unlike the Source: Magicbricks.com previous quarter where it NATIONAL PROPERTY INDEX single floor units and drop in the registered a rise of 1 per cent. average capital values by The Listed Price Monitor also l Except Gurgaon, all other cities 1-9 per cent contributed to the remained unaltered against the recorded growing demand of drop in the City Index. Uttam 1-5 per cent for 2BHK units Nagar in West Delhi noted the Preferred Cities - Sale maximum increase in supply, l Properties worth Rs 30-50 lakh Locality Rank followed by Safdarjung Enclave in continued to top the buyer Q1 Q4 South Delhi. Over 80 per cent of preference chart with a Mumbai 1 1 total housing demand was for marginal increase of 1 per cent apartments. With nearly Bangalore 2 2 from the previous quarter 45 per cent demand, 2BHK units Pune 3 3 l Demand for mid-segment continued to be the most preferred Chennai 4 4 properties worth Rs 50-70 lakh BHK category at the city level, Gurgaon 5 8 and premium properties worth followed by 3BHK units with Kolkata 6 6 Rs 1-2 crore rose by 6 per cent 41 per cent demand. New Delhi 7 7 l Supply of premium properties Similar to the previous quarter, Hyderabad 8 5 in 8 of the 12 cities outstripped the Gurgaon City Index rose by Ghaziabad 9 9 demand 1 per cent in the Apr-Jun 2014 quarter as well. The Listed Price Noida 10 10 The Ahmedabad City Index Monitor, on the other hand, Note: Q4 Apr-Jun 2014, Q1 Jan-Mar 2014 again dropped by 1 per cent in the remained stable, unlike the Source: Magicbricks.com Apr-Jun 2014 quarter. This was previous quarter where it Preferred Cities - Rent primarily on account of a drop in recorded a drop of 1 per cent. the capital values by 1-4 per cent No major change was recorded in Locality Rank in large number of localities in average capital values in the Q1 Q4 the city. This kept the City Index current quarter. However, the Mumbai 1 1 value intact. On the supply side, rental market showed a drop, Pune 2 2 no significant change was unlike the previous quarter. registered in the current quarter. Bangalore 3 3 South Bopal showed maximum Similar to the previous quarter, New Delhi 4 4 increase in listings. The Listed the Noida City Index showed no Chennai 5 5 change. Increase in availability of Price Monitor showed a similar Hyderabad 6 6 drop of 1 per cent. residential apartments for sale coupled with an overall stability Gurgaon 7 7 The Delhi City Index registered a in the average capital values Ghaziabad 8 10 maximum drop of 4 per cent arrested the growth of the City Kolkata 9 8 during the Apr-Jun 2014 quarter. Index. This too, kept the Listed Noida 10 9 Increase in availability of Price Monitor unchanged in the Note: Q4 Apr-Jun 2014, Q1 Jan-Mar 2014 properties on sale primarily in the current quarter. Source: Magicbricks.com VOL4, ISSUE 1; APR-JUN, FY 2014-15 03 propindex.magicbricks.com National - Consumer Budget Preference 30% 25% 25% 21% 20% 17% 18% 15% 12% 10% 5% 5% 1% 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 Source: Magicbricks.com 2 per cent rise it witnessed in the by properties in the budget range TOP YIELD GROSSERS Jan-Mar 2014 quarter. of Rs 20-40 lakh at 25 per cent.