Real Insights: Real Estate Overview and July – 2015 A CommonFloor Report

Executive Summary

Panvel is one of the fastest growing realty markets in Navi and the Mumbai Metropolitan Region (MMR), owing to various factors. While great connectivity and the upcoming international airport play a key role in giving a fillip to the area’s realty growth, an increasing need for affordable housing in MMR has been another driving force behind the realty growth of this area.

The following report tries to identify various such factors that have led to the overall development of Panvel. Further, the report identifies the present real estate market scenario in terms of housing sales and rentals, key real estate trends, some of the top builders and projects available in the area, civic issues, and opportunities available for the area’s future growth, amongst others.

To summarize, Panvel is currently on a realty growth trajectory. The area is becoming popular particularly among the lower and middle income class home buyers due to its affordable property prices. Considering the upcoming airport and a number of planned infrastructure initiatives, one can expect the area to be one of the most sought after real estate destinations in MMR.

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Index

Executive Summary ...... i Index ...... ii List of Maps ...... iii List of Figures ...... iii List of Tables ...... iii Introduction ...... 1 Connectivity and Infrastructure ...... 1 Major landmarks ...... 2 Civic issues ...... 2 Market Outlook ...... 3 Residential launches from 2011-2014...... 3 Major builders and projects ...... 4 BHK-wise and segmentation split in 2014 - 15 ...... 4 Price trends ...... 5 Weighted Average Price (WAP) ...... 5 Rental trends ...... 5 BHK-wise availability ...... 5 Housing rentals from 2014-2015 ...... 6 Rental yield...... 6 SWOT analysis ...... 7 Key points ...... 8

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List of Maps

Map 1: Panvel and New Panvel Location and Context ...... 1

List of Figures

Figure 1: Residential launches in Panvel since 2010 ...... 3 Figure 2: BHK wise availability in Panvel and New Panvel ...... 4 Figure 3: Classification of Housing segments in Panvel and New Panvel ...... 4 Figure 4: Weighted Average Prices in Panvel and New Panvel, 2014 - 15 ...... 5 Figure 5: BHK wise rental availability in Panvel, 2014 – 15 ...... 6 Figure 6:BHK wise rental availability in New Panvel, 2014 – 15 ...... 6 Figure 7: Average rentals in Panvel and New Panvel, 2014 - 15 ...... 6 Figure 8: Avg. rental yield in Panvel and New Panvel since 2014 ...... 7

List of Tables

Table 1: Major infrastructure projects in Panvel ...... 2 Table 2: Major builders and projects in Panvel ...... 4 Table 3: Average Rentals in Panvel and New Panvel ...... 6

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Introduction

Map 1: Panvel and New Panvel Location and Context

(Source: Google Maps)

Buying an apartment in Mumbai in an affordable range is now a far-fetched dream, with property prices touching the sky. However, there are certain localities in MMR, which offer affordable homes. Panvel in , is one such locality. Not only does it offer housing in the affordable budget, yet it is also very well connected to key areas in MMR such as Sion, , and CBD Belapur.

Part of , Panvel is additionally an important node in Navi Mumbai. Panvel and New Panvel are the biggest and most populated area in Raigad district. The City and Industrial Development Corporation (CIDCO) serves the the local development authority of the region. The locality is expected to be the next prime locality in MMR because of the upcoming international airport. Connectivity and Infrastructure

- What has been one of the key driving forces of Panvel’s growth other than affordability is its good connectivity. Panvel is known as the gateway of region. Some of the major highways providing connectivity to Panvel include NH-4, NH-4B, NH-17, Mumbai- Expressway and Sion-Panvel Expressway. Sion-Panvel Expressway connects the area to the Mumbai International Airport. - Panvel has regular Panvel Municipal Council (PMC) and NMMT run buses to , , , , , and . There are two main bus stands in the area: ST stand and NMMT stand. - The Panvel Junction is the terminating station for the ’s Harbour Line. There is a planned corridor from Vashi to Panvel. The upcoming Navi Mumbai International Airport is coming up in the Kopar-Panvel area. Besides buses and trains, one can take auto-rickshaws for local transport. - Panvel has a growing social infrastructure. It has a number of renowned educational and healthcare institutions. New Panvel is expected to be an educational and IT hub in the future.

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There are several commercial and business establishments such as Larsen & Toubro Ltd, Reliance, Hindustan Organics Chemicals Ltd, ONGC and IPCL situated in and around the node. - Panvel is close to several industrial areas such as Taloja, , and Bhiwandi. The area itself houses the CCI Logistics Park and is well connected to CBD Belapur. The JNPT port in Nhava Sheva, the upcoming Mumbai Industrial Corridor (DMIC) and the dedicated freight corridor (DFC) are situated near Panvel. - The node is also known for its greenery. Old Panvel was once popular as a destination for weekend retreats and second homes.

Some of the important infrastructure projects in Panvel as follows.

Table 1: Major infrastructure projects in Panvel

Current infrastructure Planned/Upcoming infrastructure Major highways such as NH-4B, NH-17, Mumbai- Navi Mumbai International Airport is coming up Pune Expressway and Sion-Panvel Highway start here. Land acquisition is underway. here. NH-4, also called Bangalore Mumbai Economic Corridor (BMEC), passes through Panvel. Panvel station lies on Mumbai suburban railway’s Mumbai Trans-Harbour Link (MTHL) is a Harbour Line proposed sea link between Nhava Sheva and . This will significantly boost the connectivity between Panvel and mainland of Mumbai. Presence of industrial areas such as Taloja, Proposed Navi Mumbai Metro line from Vashi to Khopoli and Bhiwandi in proximity. Presence of Panvel. The testing is expected in Dec 2016. companies such as ONGC, Reliance, Larsen & Toubro Ltd and IPCL. CCI Logistics Park is present in Panvel Proposed education and IT hub in New Panvel Proposed Reliance SEZ A new passenger railway line connecting and Nhava Sheva, extending up to Uran is expected. This will be close to Panvel. Navi Mumbai Airport Influence Notified Area (NAINA) is a planned area around the airport, covering 60,000 hectares and will be the epicentre of real estate growth in the region. Proposed Panvel-CST elevated train corridor is also expected to give connectivity to Panvel a major boost

Major landmarks

- D-Mart - Apna Cinema - K Mall - Rajiv Gandhi Stadium - BP Marine Academy

Civic issues

Panvel faces some civic issues like any other locality. Some of them are:

- There are reports of increasing number of slums in the area. - There have been complaints about electricity theft in the area, especially by the slum dwellers. - There are complaints by motorists that there are no street lights on the Panvel flyover. Motorists have also complained that the existing street lights are also defunct.

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- There is increasing traffic congestion in the area. - There are complaints that the Panvel- Road has become dangerous due to a combination of a narrow bridge, heavy turnings, lack of street lights, an accident prone junction and slopes on both sides. There are also no speed breakers, no signboards and a damaged road in the junction. All these have led to a few accidents on this stretch. - There are complaints of unauthorised shops on a few footpaths. - There are complaints from villagers near Panvel about continuous deposition of medical waste into hilly and river banks. Market Outlook

Panvel residential real estate became visible on the Mumbai real estate map with increase in property prices in Panvel and the search for new localities with affordable pricing.

Initially, the region of Navi Mumbai was formed to provide an affordable alternative to Mumbai. While Navi Mumbai is generally considered more affordable than Mumbai, with time, several nodes of the region started becoming expensive. This was due to infrastructure development, influx of several industries, improved connectivity to Mumbai and proximity of these nodes to Mumbai. Another driving factor was the development of CBD Belapur and (as an IT hub) in Navi Mumbai which initiated huge influx of people into this region. Panvel is one of the few fast growing nodes in the proximity to those regions which still lies in the affordable price range.

As such, Panvel attracts people who like to buy property in the affordable range. Since Panvel also lies close to industrial belts and business districts, it also sees a good demand for rentals. The floor space index (FSI) in Navi Mumbai is 2.5. This means that if the total plot area is 1,000 sq. ft., the total built area can be 2,500 sq. ft. The state government also announced keeping the FSI for redevelopment of old and dilapidated buildings in Navi Mumbai at 2.5 in 2014.

New Panvel is an upcoming residential and commercial node currently being developed CIDCO in the Panvel region. The node is divided into two parts: New Panvel (E) and New Panvel (W). The area is situated strategically on the eastern side of the Mumbai-Bangalore National Highway and Mumbai-Pune Expressway. It also lies adjacent to the upcoming international airport. A Reliance SEZ is also proposed in the locality, however it’s currently stalled due to land acquisition issues. The area is also surrounded by several industries. All these factors have led to the rapid development of its real estate over the last 3-4 years.

Residential launches from 2011-2014

Panvel has witnessed steady project launches in the past few years due to the continuously growing demand for housing here. Figure 1 shows the launch trends in the area in the past five years.

+ 75 % + 25 % - 20 % + 40 %

2010 2011 2012 2013 2014

Figure 1: Residential launches in Panvel since 2010

(Source: Real Insights by CommonFloor)

- Figure 1 suggests that Panvel started witnessing a slow increase in the number of units available till 2012.

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- The escalation of project launches, especially after 2010 was also due to the speculations around Navi Mumbai Airport which got its environmental and Defence Ministry’s clearance in 2010. - However since 2013, housing launches have significantly increased indicating a heightened real estate activity in the area. The year 2015 has not yet witnessed many launches during the first quarter. - Panvel and New Panvel together have witnessed over 35,000 units being launched since 2010.

Major builders and projects

The following table gives some of the major builders in the area and their project details.

Table 2: Major builders and projects in Panvel

Projects Builders/Develope Sub Total BHK Project Completion rs Region Units Availability Status Marathon Nexzone Marathon Realty Pvt Panvel 2,500 2 and 2.5BHK Ongoing Dec 2017 Ltd. Himgiri Greens Himgiri Group Panvel 700 1,2,3,and 4 BHK Ongoing Dec 2016 Balaji Residency Ph Balaji Constructions Panvel 500 1 and 2BHK Ongoing Dec 2017 II Mahalaxmi Aangan Mahalaxmi Panvel 228 1,2 and 3BHK Ongoing Sep 2016 Developers Marathon Vega Marathon Realty Pvt Panvel 264 2 and 2.5BHK Ongoing Dec 2019 Ltd. Balaji Dream City Balaji Constructions New 800 1 and 2 BHK Ongoing Dec 2017 Panvel Balaji Arcade Balaji Constructions New 1,000 1RK, 1 and 2 Ongoing Dec 2017 Panvel BHK

BHK-wise and segmentation split in 2014 - 15

Most of the available projects in the locality are apartments. Figures 2 and 3 show the BHK-wise availability of apartments and the segmentation of apartment projects in the locality respectively.

Figure 2: BHK wise availability in Panvel and Figure 3: Classification of Housing segments in New Panvel Panvel and New Panvel

(Source: Real Insights by CommonFloor) (Source: Real Insights by CommonFloor)

- Figure 2 shows that most of the available units are 1 and 2BHK apartments, with a small number of 3BHK units in Panvel. Very few 4BHK apartments may be found in Panvel. Interestingly, one may also see a small number of 1RK (room and kitchen) units. - Most of these configurations witness demand from the lower income group families working in the nearby industrial areas. The area is also witnessing a good percentage of investors buying these properties. - Figure 3 shows that about 67 per cent of the properties available here are in the affordable price range with almost 20 per cent of units in the mid-segment.

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- The area has started witnessing a few luxury and ultra-luxury apartments only in recent times, due to the growth prospects in the area and some of the top builders starting their projects here. - With 2/3rd of the projects being in the affordable segment, Panvel is one of the best destinations in MMR for affordable housing. Price trends

Weighted Average Price (WAP)

Property prices in Panvel and New Panvel are very low compared to several expensive suburbs in Mumbai. Figure 4 shows the weighted average price (WAP) in the areas since 2014.

Figure 4: Weighted Average Prices in Panvel and New Panvel, 2014 - 15

(Source: Real Insights by CommonFloor)

- Figure 4 suggests that the WAP in Panvel has been in the range of Rs 3,000-4,700 per sq. ft., till recent times, which is very low in comparison to the expensive Mumbai suburbs such as , and , where the average property value is in the range of Rs 15,000-30,000 per sq. ft. - It is only during the last quarter of 2014 that the WAP has gone up, primarily due to a couple of projects that had property prices higher than that of the prevalent market prices. - At the same time, New Panvel has almost a stable and relatively lower WAP compared to that of Panvel. The WAP in New Panvel is about Rs 3,900-4,200 per sq. ft. - The only time it witnessed a spike was during the second quarter of 2014 owing to the launch of a project that was priced higher than the prevalent market prices. But with the development of the area, one may witness the WAP to go up in the future.

Rental trends

Besides sale, Panvel also attracts a significant population looking for rentals. This is usually the working population in nearby industrial areas such as Khopoli, Taloja, CBD Belapur and Bhiwandi. New Panvel too has been witnessing an increasing rental activity in recent years. The following section gives a comparison of the rental trends in New Panvel and Panvel.

BHK-wise availability

Figures 5 and 6 give the BHK-wise availability of rental units in Panvel and New Panvel.

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49% 41%

46% 45%

5% 14%

Figure 5: BHK wise rental availability in Panvel, 2014 Figure 6:BHK wise rental availability in New Panvel, – 15 2014 – 15

(Source: Real Insights by CommonFloor) (Source: Real Insights by CommonFloor)

- Figure 5 shows that the maximum units available for rent in Panvel are 1BHK units followed by 2BHK units. There are very few 3BHK flats for rent in Panvel. This indicates that Panvel is popular among small families working in nearby industries. - At the same time, it may also be seen from figure 6 that there is a higher availability of 2BHK units for rent, followed by 1 and 3BHK units in New Panvel. This indicates the lower monthly rentals in the area, which is substantiated in table 3 and figure 7.

Housing rentals from 2014-2015

Table 3 and figure 7 give the average rentals in the Panvel and New Panvel.

Table 3: Average Rentals in Panvel and New Panvel

BHK Avg Rentals Avg Rentals Type (Rs/month) in (Rs/month) in Panvel New Panvel 1 5,700-8,000 4,000-6,000 2 8,700-12,000 6,000-7,000 3 15,000-17,600 10,000-14,000

(Source: Real Insights by CommonFloor)

Figure 7: Average rentals in Panvel and New Panvel, 2014 - 15

(Source: Real Insights by CommonFloor)

- Table 3 indicates that rental prices in both Panvel and New Panvel are very affordable. - Figure 7 suggests that the average monthly rent per sq. ft. in Panvel is in the range of Rs 10-12, while it is about Rs 10-11 in New Panvel. - The table and graph also indicate that New Panvel has lower rental prices than Panvel. Though it appears from the figure that the monthly rentals may have a slightly downward trend since 2014, according to Mr Jairam of Green Concept, the housing rentals are currently stable in the area.

Rental yield

The following graph (fig 8) gives the rental yield trend in both areas since 2014.

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Figure 8: Avg. rental yield in Panvel and New Panvel since 2014

(Source: Real Insights by CommonFloor)

- Figure 8 suggests that the rental yield in Panvel had reached the highest of about 4 per cent during the second quarter of 2014. However, it has come down in subsequent quarters. The rental yield reached stabilization during the previous two quarters. - This was because, property prices during this period grew marginally while the rental prices in the area remained stable, which led to the fall in rental yield. The current rental yield in the area is about 3 per cent, which is decent from the perspective of an investor. - New Panvel has a lower rental yield than that of Panvel, as it is a new locality and the rental prices are lower here. Nonetheless, the rental yield may be expected to slowly pick up in the near future, with the growth of the area. - The current rental yield in New Panvel is roughly 2.2 per cent.

A simple formula for calculating rental yield is given below.

Rental yield (%) = (Annual rent – Annual costs)/Total property cost * 100 SWOT analysis

The following table gives the SWOT analysis of Panvel and New Panvel.

Strengths Weaknesses (Panvel) (Panvel) - Does not have sufficient infrastructure in - Has excellent connectivity and a fast growing comparison with fully developed areas of infrastructure Mumbai - Affordable property prices - Faces civic issues

(New Panvel) (New Panvel)

- Focussed development in the area - Still a very new area. Hence, it has to witness much development Opportunities Threats (Panvel and New Panvel) (Panvel and New Panvel)

- The upcoming Navi Mumbai International - The international airport related work is Airport and few other infrastructure projects going at a very slow pace. Hence, there is an in and around Panvel uncertainty regarding the time taken for the

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- NAINA, developed around the new airport will completion of projects. This affects property significantly boost the real estate prospects in prices the area. - Most of the infrastructure projects are - Has got sufficient land parcel. Hence, it will proposed and planned. No actual ground take a long time for property prices to spiral work has started. For example, MTHL has due to non-availability of land. failed to receive bids multiple times. The - Panvel and New Panvel are expected to be delay in these projects will affect the realty developed as educational and IT hubs. prospects.

Key points

Following are the key points that may be identified from the report.

- Key growth drivers of the area are the highways that provide excellent connectivity, the upcoming international airport and the presence of industrial areas in the area’s proximity. - Proposed railway lines between Panvel and various other areas, proposed MTHL, a planned Navi Mumbai metro line from Panvel to Vashi, and the future development potential of the area as an educational and IT hub will give a further push to Panvel and New Panvel’s growth. - The area faces a few civic issues such as increasing number of slums, lack of street lights, electricity thefts and illegal encroachments. - The floor space index (FSI) in Navi Mumbai areas including Panvel is 2.5. - Panvel and New Panvel have witnessed a continuous growth in apartment launches over the last three years. The areas are preferred by buyers. Hence, builders are grabbing the opportunity by launching new projects. - Most of the available residential units in the areas are 1 and 2BHK apartments. Almost 70 per cent of the apartments available in the areas are in the affordable range (up to Rs 60 lakh). - The approximate property price in Panvel is about Rs 3,000-4,700 per sq. ft and in New Panvel, it is about Rs 3,900-4,200 per sq. ft. This is very low in comparison to those in prime areas of Mumbai such as Andheri and Bandra. - Housing rentals in the areas too are affordable. The approximate monthly rentals in the areas are in the range of Rs 10-12 per sq. ft. The areas are currently witnessing stable housing rentals. - Most of the properties for rent in Panvel are 1 and 2BHK apartments with a handful of 3BHK apartments. - Rental yield in Panvel is currently about 3 per cent and about 2.2 per cent in New Panvel. Hence, if you are planning to buy a property in one of these areas with the perspective of renting it out, Panvel is a far better prospect than New Panvel.

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Authors

Karthik Kashyap Shankhadeep Chaudhuri Priyanka Kapoor Meha Singla Senior Research Associate Senior Research Associate Sr. Research Analyst Associate Director -Domain [email protected] shankhadeep.chaudhuri@commonfloor. [email protected] Research (Real Estate) m com om [email protected] Bangalore Bangalore Bangalore Bangalore

Disclaimer: The document above is written by the Domain Research Team at Commonfloor.com, ’s fastest growing real estate website known for its unbiased prognosis in Real Estate sector. The information provided in this report is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps. It should be considered as a guideline and not in absolute certainty. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is confidential and the sole property of CommonFloor.com. It should not be reproduced in any form, in part or whole, without prior permission.

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