India-Mumbai-Residential Q3 2019
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MUMBAI RESIDENTIAL SEPTEMBER 2019 MARKETBEAT 17% 57% 41% DECREASE IN UNIT SHARE OF MID SHARE OF EXTENDED SUBURBS L A U N C H E S ( Q - O - Q) SEGMENT IN Q3 2019 IN LAUNCHES (Q3 2019) RENTAL VALUES AS OF Q3 2019* Average Quoted Rent QoQ YoY Short term HIGHLIGHTS Submarket (INR/Month) Change (%) Change (%) outlook High-end segment Q-O-Q drop in launches after three quarters South 60,000 – 700,000 0% 0% After a successive q-o-q increase in new launches in the previous three quarters, new launches at South Central 60,000 - 550,000 0% 0% Eastern 13,300 units in Q3 2019, recoded a decline of 17% q-o-q. With the unsold inventory levels remaining 25,000 – 400,000 0% 0% Suburbs high and increasing as demand has remained subdued, new launch activity was reflective of the Western 50,000 – 800,000 0% 0% market situation. The Extended Eastern and Western Suburbs along with the Navi Mumbai Suburbs-Prime submarket, with a combined share of nearly 58%, contributed the most to overall launches. They were Mid segment Eastern 18,000 – 70,000 0% 0% followed by Thane and Western Suburbs with respective shares of 15% and 13%. Reputed Suburbs developers like Godrej Properties, Regency Group, Lodha Group and Raunak Group were active Western 20,000 – 80,000 0% 0% during the quarter contributing nearly 1/3rd of overall unit launches in the city. Suburbs Thane 14,000 – 28,000 0% 0% Share of affordable segment improves Navi Mumbai 10,000 – 50,000 0% 0% The mid segment continues to dominate with a 57% share of new launches during the quarter; however, it recorded a decline of 24% q-o-q in absolute unit terms. The affordable segment’s share CAPITAL VALUES AS OF Q3 2019* from 25% to 36%, with a 23% q-o-q rise in unit terms, and Extended Suburbs and Navi Mumbai Average Quoted Rate QoQ YoY Short term Submarket driving the new launches. A solitary luxury project was also launched in South Mumbai in Q3. Buyer (INR/sf) Change (%) Change (%) outlook preference continues for ready or nearing possession homes across all submarkets and categories High-end segment during the quarter. We expect the peripheral and suburban corridors to drive residential launches in South 40,000 – 83,000 0% 0% the near future. South Central 22,000 – 73,000 0% 0% Eastern 12,000 – 40,000 0% 0% Suburbs Capital values remain steady Western 12,000 – 35,000 0% 0% The quoted, average capital values remained steady across all sub-markets and price categories Suburbs during the quarter. However, with a view to push sales in the upcoming festive season, developers are Mid segment Eastern 10,000 – 24,000 0% 0% offering limited period offers like, zero EMI, no GST, no floor rise and premium view charges, cash Suburbs back offers, free furnishings, etc. Rental values were also largely range-bound during the quarter. We Western A Cushman & Wakefield 9,000 – 26,000 0% 0% expect the increasing unsold inventory is likely to force developers to keep prices under check in the Suburbs Research Publication Thane 7,000 – 14,000 0% 0% coming quarters. www.cushmanwakefield.com Navi Mumbai 5,000 – 15,000 0% 0% MUMBAI RESIDENTIAL MARKETBEAT SEPTEMBER 2019 Rohan Sharma SIGNIFICANT PROJECTS LAUNCHED IN Q3 2019 Director Research Services Tel: +91 124 4695555 BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) [email protected] Regency Anantham Phase II Dombivali Regency Group 1,104 9,362 Godrej Nirvaan Kalyan Godrej Properties 990 10,330 Raunak City – Urban Centre Kalyan Raunak Group 586 7,766 SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q3 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS EXPECTED COMPLETION Sunteck West World Naigaon Sunteck Realty 2,476 Q4 2020 Poddar Wonder City Badlapur Poddar Housing 2,142 Q4 2021 Runwal Bliss – Phase II Kanjurmarg East Runwal Developers 1,714 Q2 2021 – Q4 2022 SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q3 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) Acme Oasis Kandivali East Acme Group 400 1,101 – 1,514 JP Decks Goregaon East JP Infra 340 1,290 – 2,120 Sai Vrindavan Panvel Today Global Group 250 610 – 1,040 Data collated from primary and secondary resources. Estimations are subject to change * Rental and capital values have been depicted only for key submarkets ** Quoted capital value on carpet area based on agreement values which includes, Base Rate, Car Parking Charges, Internal Development Charges, etc. The above values for high-end segment are for units typically of 1,200-3,000 sf The above values for mid segment are for units typically of 800-1,400 sf ^Affordable housing has been defined as units with a carpet area of 60 sq.mt in metros / 90 sq.mt in non-metros and value up to INR 45 lakhs A Cushman & Wakefield KEY TO SUBMARKETS Research Publication High-end Segment South: Colaba, Cuffe Parade, Nariman Point, Churchgate, Altamount Road, Carmichael Road, Malabar Hill, Napeansea Road, Breach Candy, Pedder Road, Tardeo South Central: Worli, Prabhadevi, Lower Parel / Parel, Dadar, Matunga Eastern Suburbs: Wadala, Sion, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali Cushman & Wakefield (NYSE: CWK) is a leading global real estate Western Suburbs - Prime: Bandra, Khar, Santacruz, Juhu services firm that delivers exceptional value for real estate occupiers Western Suburbs: Andheri, Vile Parle, Jogeshwari, Goregaon, JVLR, Malad and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across Mid Segment core services of property, facilities and project management, leasing, Eastern Suburbs: Sion, Wadala, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali, Kanjurmarg, Bhandup, Mulund capital markets, valuation and other services. To learn more, visit Western Suburbs: Andheri, Jogeshwari, Goregaon, JVLR, Malad, Kandivali, Borivali, Dahisar www.cushmanwakefield.com or follow @CushWake on Twitter. Thane: Thane, Ghodbunder Road Navi Mumbai: Airoli, Ghansoli, Rabale, Koparkhairane, Vashi, Turbhe, Sanpada, Nerul, Belapur, Kharghar, Panvel www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..