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INSITE MUMBAI RESIDENTIAL MARKET UPDATE JULY - SEPTEMBER 2020 Market Sentiment WHAT’S INSIDE? • Impact of COVID-19 on Indian Real Estate • National Outlook Snapshot of real estate ambience across top 8 metro cities • Market Movers News that impacted Mumbai’s realty market in Jul-Sep 2020 • Commercial real estate outlook • Residential demand and supply dynamics • 99acres’ Outlook Our perspective on the current market sentiment • Key trends in the buying and renting landscape • Price trends across key micro-markets FROM CBO’S DESK The Jul-Sep 2020 quarter set the pace for the recovery of Indian developers have further fueled the penchant for ready or near-ready residential real estate market. Post an initial lull in sales and new housing units. There seems to be a newfound demand for independent launches in the previous quarter, the current quarter came as a breather houses and builder floors, which offer increased privacy and scope for as sales resurged by almost 2.5 times of the pre-COVID levels. Both Delhi social distancing, as opposed to residential apartments. NCR and Mumbai saw a significant improvement in transactions, QoQ, as end-users flocked to leverage the lucrative deals floating in the market. A gradual improvement in the realty market was also evident from the Price correction, unlike anticipated, remained a far cry; however, with owner listings posted on 99acres, which went up by seven percent against a negotiation window of up to 10-15 percent, the deals closed in at a the pre-COVID times. Buyer responses also reported a 30 percent surge in reduced price of 2-5 percent of the pre-COVID levels. the same time period. New launches went up, QoQ, but remained lower than the previous year. On the policy framework front, a fiscal stimulus of Rs 10,000 crore for Majority of the developers focused on completing the ongoing projects, Maneesh Upadhyaya stuck realty projects, along with the sustenance of Repo Rate at four which were stuck during the nationwide lockdown. While work on Chief Business Officer percent, an all-time low, are likely to push the market towards a revival almost all housing projects resumed in the current quarter, a lot of them 99acres.com in the ensuing quarters. The upcoming festive season may see a further continue to face delays spanning quarters. Liquidity constraints with the improvement in the absorption of residential units, across cities. COVID-19 AND REAL ESTATE NATIONAL OUTLOOK IMPACT ON HOMEBUYERS IMPACT ON INDUSTRY HOME BUYING SENTIMENT PROPERTY PRICES After an initial set back amid pay cuts Even as supply chain reopened in Home buying sentiment improved The resale segment remained under and job losses, homebuyers were seen Jul-Sep 2020, a ban on Chinese imports as public sector banks and private pressure with deals closing at a returning to the market in Jul-Sep 2020. impacted the cost of development in players slashed home loan interest 2-5 percent discounted rate on average. Reduced home loan rates, sweetened the realty landscape. Developers cited rates to a 15-year low. This, along Developers also kept new unit prices deals by developers and more scope of increased expenses, and thus, little with resumption of construction unchanged even as some spoke of negotiations in the resale segment were scope to reduce prices in the primary work, helped take the enquiries up by increased costs amid a ban on Chinese seen as the key drivers. The quarter market. Yet, in a bid to offload the 80 percent of the pre-COVID times. imports. However, initial speculations of continued witnessing the popularity existing inventory, several schemes Developers reported a 50 percent hefty price corrections did not hold true of ready housing units, and improved were introduced in the quarter. recovery in the number of transactions. for either of the segments. demand for independent houses and Digital transformation continued as builder floors in most metro cities. developers took to the online medium RENTAL LANDSCAPE SUPPLY Window shoppers exited and genuine to interact with potential homebuyers Rental market remained in doldrums With an addition of over 31,000 units homebuyers were seen leveraging at various stages of the buying cycle. despite the opening up of the in metro cities, new launches went up the discounts available in the market. Several governmental procedures nationwide lockdown. Tenants avoided by 4.5 times, QoQ. The resale segment, Noticeably, the quarter reported shifted online as organisations adopted moving as the majority of offices too, reported an improvement as renewed interest from the NRI homebuyer to the new normal. The infusion of continued with the work-from-home several property owners returned to community against the backdrop of Rs 10,000 crore to aid the completion model. Resultantly, the rental rates the market after lockdown restrictions depreciating rupee and attractive deals of stuck realty projects was hailed by did not see any movement and offtake were gradually lifted. Unsold inventory in the new home category. the industry. was meek in both residential and stood at 4.40 lakh units at the end of commercial segments. September 2020. KOLKATA DELHI NCR 1% CHENNAI 3% 1% SHARE OF NEW LAUNCHES AHMEDABAD 16% The quarter witnessed the launch of about 240 new residential projects in top eight metro cities. Despite being severely hit by the Coronavirus pandemic, Mumbai led all cities with a 25 percent share in new and re-launched projects. Pune, Hyderabad, Bangalore and Ahmedabad followed suit with a 16-19 percent share, each. Delhi NCR made a meagre three percent share of the total new launches, with a few projects in Greater Noida, Ghaziabad and Gurgaon. MUMBAI Kolkata and Chennai reported minimal new activity from developers. 25% BANGALORE 17% PUNE 19% Note: The data depicts share of new launches across metro cities in the studied quarter The numbers include re-launched projects HYDERABAD 18% MARKET MOVERS COMMERCIAL REAL ESTATE OUTLOOK MHADA to construct 15,000 Faster approvals to budget housing units restore denser slum • A 15-20 percent decline in the office out of renting and chose to work in Goregaon pockets space leasing increased the vacancy from home. Only the companies rate in the city by approximately downsizing their capacity opted The Maharashtra Housing and Area The Slum Rehabilitation Authority 20 percent in Jul-Sep 2020 as for shared spaces, that too, on a Development Authority (MHADA) (SRA) reduced the project approval against the pre-pandemic times. profit-sharing model. planned to build around 15,000 timeline to seven days for faster low-cost residential units in Goregaon restoration of denser slum pockets • Popularity for large offices took • A few significant deals recorded under the Pradhan Mantri Awas Yojana in Mumbai. To expedite the a backseat. However, compact in the city were by Appai (PMAY). Besides, it also waived off the refurbishment process further, the spaces with area ranging between Technologies signing a Letter of interest on premiums of affordable State government will establish 1,500 sq ft and 5,000 sq ft remained Intent (LOI) for 10,000 sq ft in L&T housing projects to improve the supply an additional SRA in the Mumbai popular in Airoli, Belapur, Vashi, Seawoods and CMS Technologies of budgeted homes. Metropolitan Region (MMR) along Turbhe and Kurla. leasing a 6,000 sq ft of office space with a stress fund. in Mahape. • The share of leased coworking spaces decreased in Q2 2020- 21, as many small firms opted Wadala-Kasarvadavali Government tightens metro line clears legal the noose on hurdles redevelopment projects The Mumbai Metropolitan Regional The Maharashtra government Development Authority (MMRDA) proposed an automatic cancellation received a go-ahead for the of No Objection Certificate (NOC) construction of Line 4 of Mumbai for builders who fail to deliver Metro in a mangrove buffer zone. their redevelopment projects The 32 km-long metro corridor, once within three years. Currently, through, would benefit around there are over 14,000 dilapidated 34 residential hubs, including Mulund, structures in Mumbai with those Ghatkopar, Manpada, Majiwada and in Dongri, Bhuleshwar and Kapurwada, among others. Mohammed Ali Road requiring immediate renovation. 99acres India’s No.1 Property Portal MUMBAI’S REALTY AT A GLANCE Property Prices Rental Rates Demand Supply BUDGET-WISE DEMAND AND SUPPLY Key micro-markets across budget segments Budget Localities based on Average Average Rental Jul-Sep 2020 Range Consumer Demand and Property Prices Rental ‘Asks’ Yield Active Listings (Rs per sq ft) (Rs per sq ft/month) 13% Within Rs 40 lakh Ambernath 3,600-4,400 9 2.42% Badlapur 3,300-3,900 7 2.15% 8% -21% Rs 40 lakh - Rs 1 crore Dombivli (East) 4,900-6,200 13 2.68% Taloja 4,600-5,500 9 2.00% Panvel 5,800-7,200 13 2.47% Rs 1 crore and above Kalyan (West) 5,500-6,600 14 2.49% Kharghar 8,000-9,500 19 2.44% Demand Kandivali (West) 13,900-16,300 33 2.52% Note: Rental Yield has been calculated for a 1,000 sq ft apartment. 40% 19%0% 27% 35% 33% 46% Supply Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments. Within Rs 40 lakh Rs 40 lakh - Rs 1 crore Rs 1 crore and above BHK-WISE DEMAND AND SUPPLY Key micro-markets across BHK-configurations Configuration Localities based on Average Average Jul-Sep 2020 Consumer Demand and Unit Size Property Prices Active Listings (Sq ft) (Rs per sq ft) -15% 7% 1 BHK Virar 540-560 4,500-5,100 Ulwe 560-600 6,700-7,800 Bhandup (West) 550-570 13,100-15,100 2 BHK Dombivli (East) 810-850 4,900-6,200 Kharghar 950-1,000 8,000-9,500 Panvel 910-960 5,800-7,200 6% 3 BHK Majiwada 1,350-1,400 9,700-11,000 Kandivali (East) 1,200-1,250 14,000-16,100 Demand Balkum 1,300-1,350 9,000-11,000 2% 51% 36%0% 35% 42% 12% 18% 2% 4% Note: Average property prices and rental rates have been calculated as per listings posted on 99acres.com in Supply the studied quarter.

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