Mumbai 2018 October-December
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www.99acres.com INSITE REPORT Mumbai 2018 October-December 99acres India’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : MUMBAI 3 From CBO’s Desk The year 2018 marked the ‘settling down’ phase for Indian real estate, which had been battling with unremitting challenges ranging from political instability to colossal policy reforms. Enhanced Contents transparency in the real estate sector, courtesy RERA, helped improve buyer sentiment, which subsequently pushed demand and sales velocity up. The affordable housing sector was the biggest From CBO’s Desk Maneesh Upadhyaya Chief Business Officer beneficiary of the rebounding housing demand. 99acres.com data 03 CBO’s perspective on current showed that homes priced within Rs 60 lakh garnered more than market sentiment 99acres.com seventy percent of the demand in top eight metros. Average property National Outlook prices across metros maintained status-quo with a few aberrations 04 Snapshot of real estate ambience in cities such as Pune, where a number of micro-markets recorded across top 8 metro cities price corrections on the back of meek sales. Hyderabad emerged as one of the top performing metros with a consistent rise in home Market Indicators values starting April 2018. 05 Changes in capital rates and inventory status QoQ; and rental values YoY The current year is expected to continue seeing gradual Market Movers recovery and reap returns of increased regulations in 06 News that impacted Mumbai's the sector. With fly-by-night developers completely realty market in Oct-Dec 2018 shrugged out of the market, buyers having a voice in the form of RERA and homes becoming 99acres Outlook affordable by the day, unit sales are 07 99acres’ perspective on current expected to grow further from here. market sentiment Methodology Financing crunch for builders, Navi Mumbai however, may be a potential The Insite Report by 99acres.com captures Key highlights - Navi Mumbai's Capital dark cloud. 08 the quarterly capital trends and the annual and rental market in Oct-Dec 2018 rental analysis of residential apartments Thane and Beyond in key real estate markets – Delhi NCR, Mumbai 10 Key highlights - Thane's capital and Metropolitan Region (MMR), Bangalore, rental market in Oct-Dec 2018 Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing Mumbai sentiment, the report delves deep into demand 12 Key highlights - Mumbai's capital and and supply of properties across varied budget rental market in Oct-Dec 2018 segments and occupancy stages. While demand is a function of queries received, Annexures 14 supply is based on property listings posted on 99acres.com in Oct-Dec 2018. 99acres India’s No.1 Property Portal INSITE : MUMBAI 5 MARKET INDICATORS DELHI NCR NATIONAL OUTLOOK HOME BUYING SENTIMENT KOLKATA While buyer sentiment improved manifold, sales were impacted by AHMEDABAD compliance related challenges. Homebuyers in Kolkata, for instance, waited for clarity over HIRA, and those in Delhi NCR snubbed the under-construction segment due to uncertainty over GST rates. Bangalore, Mumbai, Pune and Hyderabad continued displaying signs of realty revival. MUMBAI PROPERTY PRICES PUNE Barring Delhi NCR and Kolkata, where property prices maintained status quo, all metros registered an upward revision in property prices with Hyderabad HYDERABAD leading the charts with a two percent uptick, QoQ. The legacy built-up of inventory in Delhi NCR is likely to keep prices under check in the quarters to come. Other metro cities may see modest price hike. RENTAL LANDSCAPE The growth of the rental market continued unabatedly in Oct-Dec 2018. The BANGALORE CHENNAI Capital Values trend is likely to continue until the capital market undergoes a complete Rental Values revival. With Kolkata in the lead, all metro cities reported an uptick in average rental ‘asks’ by 2-4 percent, except Delhi NCR where average rentals Supply increased by a modest one percent due to oversupply of residential units. Increase by 2-4 percent Increase by 0-1 percent SUPPLY Status quo Though the absorption of residential units dipped, QoQ, the reduction in Decrease by 0-1 percent the inventory pile-up across cities spelt good news. New projects, although restricted, remained inclined towards affordable housing segments, accounting Decrease by 2-4 percent for over 40 percent of the total new inventory. While the country boasts of over 34,800 RERA-approved projects, the pace of registration remained a concern. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com 99acres India’s No.1 Property Portal INSITE : MUMBAI 7 99ACRES OUTLOOK Market Movers The Oct-Dec 2018 quarter was a mixed bag for Mumbai’s housing market. While festive offers steered residential demand, the increase in stamp duty rates by a Infrastructure projects receive a boost Building heights in Marine Drive capped percent marred buyer sentiment. Multiple infrastructure projects at different at 24 m Housing pockets in Thane with maximum concentration of affordable units stages of development are expected to set the Citing the area’s heritage significance, the apex continued to be the cynosure for potential homebuyers, followed by Navi Mumbai pace for the city’s realty growth. Some of these court restricted the height of buildings near and Mumbai, which remained the preferred residential hotspots for properties include the proposed metro corridor in Thane, Marine Drive to 24 m. It declined the suggestions priced between Rs 70 lakh and Rs one crore. The premium residential landscape the signal free corridor on the Western Express of the Brihanmumbai Municipal Corporation’s continued to reel under pressure due to limited inventory offtake. While the total Highway, recently commissioned Nerul-Uran (BMC) for increasing the height of buildings in the supply of apartments in the city rose by 10 precent, average weighted capital values rail link in Navi Mumbai and a town planning area to 58 m on the same grounds. witnessed a marginal hike of a percent. scheme announced under Navi Mumbai Airport Influence Notified Area (NAINA). Mumbai DCPR 2034 to improve Unlike other metros, Mumbai witnessed healthy sales in the under-construction city’s skyline segment, which captured around 60 percent share of the total residential demand. Affordable housing receives a shot in The approval of the Mumbai Development End-users continued to drive the city’s housing market in Oct-Dec 2018, whereas the arm Control and Promotion Regulations 2034 investors remained at bay. Noticeably, unsold housing inventory in Mumbai trimmed To cater to the demand for low-cost units, the (DCPR) bodes well for the city’s realty down from over 2.5 lakh units in December 2017 to around 1.3 lakh units in 2018. government launched several projects under landscape. The move would open 3,700 PMAY including an affordable housing project hectares of land, earlier designated as Holistically, the city’s real estate sector has significantly benefitted from the worth Rs 18,000 crore and offering 90,000 No-Development Zone (NDZ), for increased accountability and transparency instilled by MahaRERA. However, budgeted units in MMR. Besides, sanctions construction of new residential the rippling effect of liquidity crisis led by NBFC and locking up of 70 percent of have also been made for the allotment of projects. The increased supply project funds in escrow account have created financial challenges for developers grazing lands and plots for the construction is expected to trigger a in completing their ongoing projects. This might cumulatively impact the projects of affordable homes in the city. price correction to scheduled for delivery in 2019. the tune of 10-15 Government hikes stamp duty rate percent. A one percent increase in the stamp Price movement in key micro-markets duty from five to six percent is likely to LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE accelerate property values in the city and dampen homebuying sentiment. Increased Panvel 5,900-6,900 0% 1% revenue from the hike will be used to fund Kharghar 7,900-9,200 1% 4% infrastructure projects such as freeways, Ulwe 6,600-7,600 3% 5% sea links and Bus Rapid Transit Systems (BRTS). Dombivli (East) 5,200-6,100 -1% 2% Kalyan (West) 5,200-6,300 0% 3% Badlapur 3,000-3,700 1% 3% Virar 4,000-4,800 2% 1% Andheri (West) 18,700-23,400 -2% 0% Kandivali (West) 13,000-16,600 1% 3% Borivali (West) 15,500-18,300 3% 3% * Average ‘ask’ rates have been calculated as per listings posted on 99acres.com in the current quarter 99acres India’s No.1 Property Portal INSITE : MUMBAI 9 NAVI KEY HIGHLIGHTS MUMBAI SUPPLY OF The Oct-Dec 2018 quarter can be described as the period of strong on the back of affordability, Ghansoli topped the popularity charts owing to APARTMENTS Navi Mumbai emerged as an revival for Navi Mumbai’s housing market. More than 70 percent of the ample availability of ready-to-move units. attractive homebuying destination tracked housing locales reported an uptrend in the average weighted UC RTM DEMAND UC RTM SUPPLY in Oct-Dec 2018 and recorded a property prices, QoQ. Overall, average capital prices recorded one Luxury and ultra-luxury properties varying from Rs 1-2 crore and 30 percent uptick in the housing percent hike in Q4 2018 when compared to the previous quarter. Rs 2 crore and above, respectively, failed to report any quarterly change in demand vis-à-vis Oct-Dec 2017. the housing demand. On the contrary, supply reported a marginal uptick of Close to 10,000 new housing units Close to 60 percent of the market demand hailed for under- a percent, QoQ. The improvement in inventory supply could be attributed were added to the city during the construction segment followed by the resale market.