Real Insights: Real Estate Overview Powai April-2015 a Commonfloor Report
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Real Insights: Real Estate Overview Powai April-2015 A CommonFloor Report Executive Summary Powai, in north-east Mumbai, is considered as one of the upscale suburbs in the country’s financial capital. In recent years, Powai has surpassed other eastern suburbs in its luxury quotient as well as demand for housing. Multiple factors have been the driving forces behind Powai’s growth into a posh residential hub. The following report tries to identify the various factors that led to the growth of the suburb and its real estate market. Further, the report identifies the present real estate market scenario in terms of housing sale and rent, the key trends, the top builders and their projects available, the civic issues, and the opportunities available for the suburb’s future growth, amongst others. To summarize it all, Powai continues to grow as an attractive real estate hub for the upper middle class and high net worth individuals. Interestingly, a significant demand for housing comes from the tenants rather than property buyers. Nonetheless, offering properties for both sale and rentals, the area continues to witness growth in infrastructure and appreciating property prices over the years. Moreover, considering the various parameters, one can expect a positive real estate growth in the area in the near future. Index Executive Summary ................................................................................................................................................................................. i Index ............................................................................................................................................................................................................. ii List of Maps ............................................................................................................................................................................................... iii List of Figures ........................................................................................................................................................................................... iii List of Tables ............................................................................................................................................................................................ iii Introduction ............................................................................................................................................................................................... 1 Connectivity .......................................................................................................................................................................................... 1 Infrastructure ....................................................................................................................................................................................... 1 Major landmarks ................................................................................................................. 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Civic issues ............................................................................................................................................................................................ 2 Latest Updates .......................................................................................................................................................................................... 2 Commercial updates ......................................................................................................................................................................... 2 Market Outlook ........................................................................................................................................................................................ 2 Residential launches from 2011-2014...................................................................................................................................... 3 Major Developers and Projects .................................................................................................................................................... 3 BHK-wise and segmentation split in 2013-14 ....................................................................................................................... 3 Price Trends............................................................................................................................................................................................... 4 Weighted Average Price (WAP) and resale values .............................................................................................................. 4 Resale trends from 2013-2015 .................................................................................................................................................... 5 Housing Rentals from 2014-2015 ............................................................................................................................................... 6 Rental Yield ........................................................................................................................................................................................... 6 SWOT analysis .......................................................................................................................................................................................... 7 Key points ................................................................................................................................................................................................... 7 List of Maps Map 1: Powai Location and Context ................................................................................................................................................ 1 List of Figures Figure 1: BHK wise availability in Powai ...................................................................................................................................... 4 Figure 2: Classification of housing segments .............................................................................................................................. 4 Figure 3: Weighted Average Price (WAP) in Powai, 2013 - 15 ........................................................................................... 4 Figure 4: Type of residential units available for resale .......................................................................................................... 5 Figure 5: Configuration of units available for resale ............................................................................................................... 5 Figure 6: Resale prices in Powai, 2014 - 15 ................................................................................................................................. 6 Figure 7: Average Rentals in Powai, 2014 -15 ........................................................................................................................... 6 Figure 8 Average Rental Yield in Powai, 2014 – 15 ................................................................................................................. 7 List of Tables Table 1: Important infrastructure projects in Powai .............................................................................................................. 2 Table 2: Major builders and projects in Powai .......................................................................................................................... 3 Table 3: Characteristics of different BHK types for resale .................................................................................................... 5 Table 4: BHK wise average rentals, 2014 - 15 ............................................................................................................................ 6 Introduction Map 1: Powai Location and Context Source: Google Maps Situated in the north-eastern part of Mumbai, Powai is a premium locality situated on the banks of Powai Lake. From a prominent picnic spot to one of the most upmarket business and residential hubs, the way in which this central village has metamorphosed is nothing short of remarkable. While there are a host of factors that make Powai a prominent address, the presence of Kensington SEZ, which houses several IT and ITeS companies, has given a major fillip to the residential market of the area. Connectivity Powai enjoys swift connectivity with most of the prime suburbs of Mumbai via important roads such as Jogeshwari-Vikhroli Link Road (JVLR) and LBS (Lal Bahadur Shastri) Marg. The Eastern Express Highway (EEH), which connects the eastern suburbs, passes close to Powai. The Eastern Freeway which was open to public in 2013 (I Phase) and 2014 (II Phase) has significantly improved the area’s accessibility to South Mumbai. Further, Powai has regular BEST and A/C bus services along with auto-rickshaws, another common mode of transport within the suburb. Powai does not have its own railway station, but Kanjurmarg and Vikhroli railway stations are just situated at a distance of 3.5km and 5km respectively. The nearest planned metro stations are in Jagruti Nagar, Marol and Saki Naka. The Mumbai International Airport is just about 5 km away from Powai. Infrastructure The suburb boasts of robust civic and social infrastructure with an array of malls, healthcare centres, dance academy