® Chembur, Mumbai Disappearing Old Chimneys to Emerging Swanky High-Rises Micro Market Overview Report November 2017 Micro Market Overview Report | Chembur, Mumbai About Micro Market The realty landscape of Chembur has witnessed a Whilst most of the residential developments shifted paradigm shift over the past few years. Primarily towards suburbs and peripheral areas of Mumbai known as an industrial destination with the presence due to a land shortage in the core city precincts, of reputed companies such as RCF and BARC, Chembur unlocked large industrial land parcels and Chembur is rapidly transforming into a premium attracted several developers to participate in the residential destination of the Central Suburbs. city’s vertical growth. In addition, the Santacruz Industrial units, dilapidated slums and old buildings Chembur Link Road (SCLR) and Eastern Freeway are being redeveloped into modern residential added a feather in its cap by providing seamless complexes. connectivity to western suburbs and South Mumbai. Chembur altered rapidly due to its proximity to major commercial office destinations such as Wadala, BKC, Powai and Ghatkopar. Availability of large industrial land parcels for residential developments ably supported this transformation. Chembur is rapidly transforming into a premium residential destination of the Central Suburbs. ® Disappearing Old Chimneys to Emerging Swanky High-Rises 1 Chembur is well-connected to various parts of Mumbai through a grid of roads and an established rail network. Santacruz Chembur Link Road Connectivity Road Rail Eastern Express Highway – Chembur lies in Suburban rail – The harbor line of Mumbai proximity to Eastern Express Highway, which suburban railway has a station at Chembur, which provides excellent connectivity to South Mumbai, provides connectivity to CST in South Mumbai and central suburbs as well as the metropolitan area of Panvel in Navi Mumbai. Thane. Monorail – Chembur is well-connected to Wadala Eastern Freeway – Chembur enjoys hassle-free via monorail (line 1). This line of the monorail is connectivity to South Mumbai via Eastern Freeway, being extended until Jacob Circle in South Mumbai which links RK Studio in Chembur to P D’ Mello and is likely to be operational by mid-2018. Road in South Mumbai. Metro rail – The metro station of the operational SCLR – Chembur is well-connected to BKC (the de- Ghatkopar-Versova-Andheri line is in proximity to facto CBD of Mumbai) and commercial Chembur, which provides excellent connectivity to establishments of the western suburbs via the the central and western suburbs. SCLR. Sion-Panvel Highway – Chembur is well- connected to Navi Mumbai via Sion-Panvel Highway. Easy accessibility to the commercial establishments along Thane-Belapur Road is also an added advantage of Chembur. ® Disappearing Old Chimneys to Emerging Swanky High-Rises 2 Micro Market Overview Report | Chembur, Mumbai Major Growth Drivers Ÿ Chembur possesses easy accessibility to the Ÿ Availability of industrial land parcels for large- commercial establishments of BKC, Central scale residential and commercial development Suburbs (Powai, Ghatkopar) and Thane. would further attract developers for organized Moreover, improved connectivity to the western commercial and residential development in the suburbs via SCLR is an added advantage. micro market. Ÿ The proposed Bandra Kurla Complex- Ÿ The micro market is one of the fastest growing Chunabhatti Connector (four-lane, 1.7km flyover suburbs in the Mumbai, due to its strategic connecting BKC to the Eastern Express Highway) location advantage and improving social and is likely to be completed by December 2018. This physical infrastructure. This has positively will provide hassle-free connectivity (by reducing stimulated residential housing demand and the the travel time from 45 min to 15 min) to the BKC region is likely to be in focus in the future periods and further boost residential demand in the as well. region. Proposed Bandra Kurla Complex- Chunabhatti Connector reducing the travel time from 45 min to 15 min Chembur Monorail ® Disappearing Old Chimneys to Emerging Swanky High-Rises 3 Location Micro Market Overview Report | Chembur, Mumbai Versova Powai Andheri Airport Ghatkoper Santacruz Bandra (W) BKC Chembur Monorail Sation Mithi river Chembur East Eastern Freeway SCLR Ghatkoper-Andheri-Versova Metro Wadala Eastern Expressway Highway Worli Western Expressway Highway Airport Chembur Monorail Water Body Prominent location ® Disappearing Old Chimneys to Emerging Swanky High-Rises 4 Residential Market Assessment New Launch Supply Age of Inventory (Launches between 2010 to Q3 2017) 6,000 5,000 18% 14% 4,000 13% Units 3,000 14% 2,000 41% 1,000 0 2013 2014 2015 2016 Upto Q3-2017 Ready to Move-in < 1 year < 1-2 year < 2-3 year < 3 year Ÿ With continuous infrastructure upgrades and Ÿ Of the overall supply in Chembur, nearly 14% is rapid growth of commercial developments in the complete. Notably, 13% of inventory is likely to precinct, the residential market of Chembur added complete in the next 1 year, which connotes a around 14,000 units in the last 5 years further rise in absorption, as projects nearing completion generally witness better traction Ÿ The opening of the Eastern freeway in 2013 and the monorail in 2014 were the key triggers for Ÿ Only 18% of the overall supply in Chembur is development of residential houses in Chembur. likely to complete post 3 years or so. Developers The micro market has witnessed the launch of with under construction projects are now focusing large projects such as Unity Land Venus Heights on speeding the construction, to avoid RERA (2,400 units), Lakhani Estate (780 units) and Godrej Prime (500 units) penalties on execution delays Ÿ Of the overall supply, nearly 40% has been already absorbed in the primary market Nearly 40% has been already absorbed in the primary market ® Disappearing Old Chimneys to Emerging Swanky High-Rises 5 Chembur’s average price as of Q3 2017 is around INR 17,400/sqft Residential Market Assessment Micro Market Price Movement wrt Supply 3,500 17,600 3,000 17,500 2,500 17,400 2,000 Units 17,300 1,500 1,000 17,200 500 17,100 0 17,000 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 New Supply (In Units) Price (INR/sq) Ÿ Chembur’s average price as of Q3 2017 is around Ÿ In Q3 2017, the micro market recorded a nominal INR 17,400/sqft, which is relatively lesser than decline in average price, primarily on account of other prominent micro markets of central low offtake due to the impact of RERA and GST suburbs. and a rise in the buyer’s preference towards ready-to-move-in properties. ® Disappearing Old Chimneys to Emerging Swanky High-Rises 6 Micro Market Overview Report | Chembur, Mumbai Outlook Chembur has attracted several real estate Being the cynosure of real estate developments developers for their portfolio expansion. Constantly due to its strategic location advantage, the micro improving social and physical infrastructure and market is likely to witness significant new launches availability of a wide range of property options in the future periods. Considering that the real suiting the requirements of varied buyers has been estate sector is currently re-orienting to the new an advantage of this micro market. reforms under RERA and GST, prices may remain Chembur Freeway muted for some time. In addition, Chembur’s price Due to its seamless connectivity to BKC and other appreciation also depends significantly on commercial destinations of Mumbai, the residential revamping the location’s perspective as a housing demand in Chembur is likely to improve in destination of rehabilitated slums and redeveloped the future periods. End-users, as well as investors, projects. are likely to purchase property in Chembur due to increasing commercial developments in the precinct and seamless connectivity to South and North of Mumbai. Due to strategic location advantage, the micro market is likely to witness significant new launches. ® Disappearing Old Chimneys to Emerging Swanky High-Rises 7 company ANAROCK Property Consultants Pvt. Ltd. Formerly, Jones Lang LaSalle Residential Pvt. Ltd. © 2017. All rights reserved. MahaRERA Registration No. A51900000108 available at http://maharera.mahaonline.gov.in All information in this report is provided solely for internal circulation and reference purposes. ANAROCK makes no statement, representation, warranty or guarantee as to the accuracy, reliability or timeliness of the information provided. No part of this report may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods..