FOREWORD
The Indian real estate sector is at crossroads today. The real estate markets across all the major cities have been stagnant with low transaction activity. The market is saddled with large unsold inventory which at current rate of sales velocity will take more than four years to clear. Amidst this environment, there have been repeated calls for reduction in the prices of residential assets. Market watchers believe that only rationalization in prices can break this logjam and lead to more transaction activity. But what are the current price levels? And how much room does a developer have to reduce prices? In our current edition of PropIndex (Jul-Sep 2015), we look at the price trends across major cities. As different budget segments have unique demand-supply scenario, we’ve divided the capital value (Rs/sq ft) range in each city into eight budget segments. The trend analysis has been done on a Q-on-Q basis for a two year period between Jul-Sep 2013 and Jul-Sep 2015. Our analysis shows that prices across different budget segments in each city have remained stagnant over the evaluation period. Comparing the cities basis their weighted average price movement over the two year period shows that except for Pune and Chennai, none of the cities have even managed to get a double digit growth. Even in case of these two cities, the price increment has been 11.8% and 10.8%, respectively. Delhi was the worst performer with a net decline of 14.8%. Big mid-segment real estate markets like Bengaluru and Noida saw 7.6% and 3.2% price increment. However, when these marginal increments in prices are adjusted for inflation, we find that the net movement in prices is either zero or even negative. This stagnation in the market is reflected in the Jul-Sep 2015 National PropIndex which remained at the same level as the previous quarter. In case of individual cities, Bengaluru again witnessed the maximum appreciation of 4% while Delhi declined further by 5%. Western cities of Pune, Mumbai and Ahmedabad all witnessed positive movement in their city indices. Today, the developers understand the requirement of easing acquisition cost for consumers. Towards this end, they have come up with various attractive payment plans like subvention schemes where EMI till possession is paid by the developer or possession linked payment plans. Apart from this, they are also offering freebies and discounts. When the financial saving from these payment plans or freebies/discounts are factored, it translates into 5%-15% saving to the consumer. With RBI easing policy rates and attendant reduction in home loan rates, the developer community expects that the combination of lower interest rates and freebies/discounts will get the fence sitters to take the leap. Therefore, in short to medium term, we do not expect developers to take the drastic step of upfront reduction in capital values. They are more likely to persist with discount and freebies to pass lower cost to consumers. An upfront reduction in prices may send strong negative signals and have a domino effect. Consumers may start to hold their purchase decision expecting prices to fall further. These are changing times and we would love to hear from you. Do write to us at [email protected] and share yours views on this report and how we could make PropIndex even better.
Sudhir Pai CEO, Magicbricks.com METHODOLOGY
Magicbricks PropIndex are aggregated into their been chosen based on respective cities and their activity levels) and Magicbricks PropIndex then to the National has an individual city is a tool which Index. Weightages for report for each of these empowers property PropIndex are based on cities. While the NPI and seekers and investors the supply of properties its movements are of with detailed within the locality/city. interest to the expert information on the Based on this structure, community of bankers, movement of residential PropIndex gives a builders and investors, apartment prices and realistic picture of the PropIndex has also supply of properties in trends in price/supply taken care to explain the India. No credible across different property nuances of index property index can be a markets in each city. We movements at the function of direct values have used different locality level that would as the changes are weightages for Listed help the huge base of governed by multiple Price Monitor/Rent Magicbricks.com factors. Monitor. Therefore, read consumers. as a whole, PropIndex Magicbricks PropIndex Insights into consumer along with tables has taken this reality demand have been provided for Listed Price into account and gathered through Monitor, Rent Monitor, produced an index based analysis of search Yield Monitor and on listing of apartments information on the site. Capital Values, gives an and their capital and This helps understand excellent perspective of rental values on the the best localities by the property market website. demand, the type and performance in the configuration of units as “Magicbricks has over quarter. 12,00,000 active well as the budget-wise properties posted by While listing and its preferences. values/supply provide a more than 2.5 Lac active The PropIndex is the level of understanding users in 600+ cities and result of meticulous of the market, there are 17,000+ localities. Our research at the locality meticulous data checks users include owners, level and through to prevent aberrations agents and developers.” detailed discussions creeping in the Index. with experts at These are based on Magicbricks.com’s Methodology statistical calculations, offline and online industry inputs and Apartment values are initiatives. based on listings on logical interpretations. The Indian real estate Magicbricks. These The National Property market is dynamic and include multi-storey Index (NPI) is indicative the PropIndex reflects apartments and single of the extent of activity those changes. Since it is units on plotted as well as price derived from a dynamic developments, referred movements across cities database, additions and to as builder floors on and localities in the deletions of localities Magicbricks.com. major cities active on happen as a function of Magicbricks.com. The The Index is structured market dynamics. in such a way that index includes the top individual properties 11 cities (these have GLOSSARY & DEFINITIONS
There is a wealth of information within these pages. For better readability, we have presented some data as tables and others as graphs. Between them, you will find how property markets have performed in the Apr-Jun 2015 quarter from different perspectives – from that of capital appreciation, from a rental/yield realisation perspective and from a supply standpoint. Demand Analysis section also explains what consumers look for. We recommend that you evaluate the city report in its entirety and that will provide a rounded perspective of the performance of the property market within each city. Here are the details of what you will find in each of the city reports enclosed within: 1. City Property Index – This is a composite index which is a function of supply of properties as well as the average capital appreciation/drop in various localities of the city in the quarter. The City Index is the weighted average of the average rate per square foot in that locality and the supply of properties from that locality. Premium localities (with higher average rate per square foot) as well as localities with higher supply of properties will have a bigger impact on the Index. For example, if the supply of properties from a premium locality drops, that locality will end up having a lower weightage in the Index which in turn will push the Index downwards (and vice-versa). On the other hand, supply of properties remaining unchanged, the Index will be influenced by capital appreciation within the locality. 2. Listed Price Monitor – This metric shows the capital appreciation/drop within a locality and is calculated on the basis of movement in the “average rate per square foot” within that locality. By and large, the movement in the “average rate per square foot” reflects capital appreciation/drop. However, in a few select cases, we have observed that the average rate per square foot moves due to a change in the mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher per square foot rate, changes over the quarter). In these few circumstances, the Listed Price Monitor will, in turn, reflect this input. Such changes have been explained in the text of the City Reports. 3. Rent Monitor – This reflects the rental appreciation/drop within a locality. It is calculated on the basis of movement in the “average rent per square foot” within that locality. By and large, the movement in the “average rent per square foot” reflects rental appreciation/drop. However, in a few select cases, we have observed that the average rent per square foot moves due to a change in the mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher per square foot rent, changes over the quarter). In these few circumstances, the Rent Monitor will, in turn, reflect this input. Such changes have been explained in the text of the City Reports. 4. Yield Meter – Yield is the annual rate of return earned on property. The Yield Meter depicts the gross yield percentages across various localities. Gross yield is a ratio of average annual rental value to the average capital value of the property. 5. Capital Value Tables (given in Annexures) –This shows the actual range of prices within which properties were available in each locality in the quarter. Prices are shown in Rupees per square foot basis, these are the prevailing rates for properties in each locality. 6. Price Trend Analysis – This analysis of looks at distribution of real estate assets on the basis of capital value (Rs/sq ft). We have grouped the city localities into various budget segments on the basis of their capital values. We then evaluate the historic price trend for these budget segments over a two year period from Jul-Sep 2013 - Jul-Sep 2015. 7. Editorial Speak – PropIndex has gone from strength to strength – adding more analytics, insights and diverse views in every edition. To enhance the insights provided by our data, PropIndex now includes city perspectives from editors of the Times Property. NOTES VOL 5, ISSUE 2; JUL-SEP, FY 2015-16 propindex.magicbricks.com [National Property Index (NPI)] 175 150 125 100 75
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JUL-SEP 2015 some positive movement in the Price Today, the biggest concern which the n line with the general lack of activity in Monitor while others either stayed at the consumer has in respect to the real estate the residential real estate market, the same level or witnessed an overall dip in the market is lack of confidence in the developer INational Property Index has also price levels. community. With many projects having been remained stagnant over the previous Bengaluru again emerged as the city with delayed and lack of clarity on their quarter. This is in continuation of the general maximum increase with the Index having completion timelines, the consumer is vary trend of inactivity observed in the market grown by 4% in the evaluation quarter. This of investing his money in the market, over the last many quarters (including the was followed by Mumbai with 3% increase especially in new launches or under- current period between Jul-Aug 2015). and Gurgaon with 2% increase. The largest construction projects. NPI is the weighted average of supply and drop in the City Index was again witnessed Therefore, it is imperative on the part of capital values across 11 cities in India. in Delhi with the Index value falling by 5%. the developer community to bring Except for Gurgaon, cities in the North either transparency and take the consumers into Regionally, North India comprising of witnessed a drop in Index values or confidence. While payment schemes like Delhi, Noida/Greater Noida, Ghaziabad and remained at the same level as in the last ‘possession linked payment plan’ have been Gurgaon, saw an average drop in the Index quarter. Ahmedabad City Index grew by 1% offered by several developers to allay values. Compared to this, while the Index in as compared to the last quarter. consumer fears of non-delivery and credit the South Indian cities on an average While the Reserve Bank of India (RBI) getting stuck, more efforts are required to remained at the same level as in the last increase the transaction momentum. quarter, West India saw an average rise of lowered the interest rates, leading to banks 2% in the Index values. Kolkata in the east passing on the benefit to consumers in terms IN THIS REPORT: also saw the Index values remaining at the of lower home loan rates, the same might not be sufficient enough to address the issue same level as the previous quarter. National Property Index...... 1 of low transaction volumes and large The movement in Index in the quarter can inventory pile-up. The festive season and the Delhi...... 4 be attributed to an average 13% increase in associated discounts and freebies given by Gurgaon...... 14 supply and partly due to six out of the eleven developers, along with lower interest rates Noida...... 24 cities having more than 50% localities with may have some positive impact on the Ghaziabad...... 34 price increment. However, only one city saw transaction activity on the ground. propindex.magicbricks.com 02 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
comprised of other localities such as Manikonda and Kondapur which continued to be the top localities in terms of active listings. On an average the localities witnessed less than 1% increase in property values. The city also saw an increase in the overall number of active property listings. The City Index for Kolkata remained -1% stable over the past quarter. More than 55% of the localities saw a drop in capital values while the remaining 39% of them saw some increment. The localities on an average witnessed a 1% drop in capital values. However, the City Price Index remained stable over the quarter. Localites such as Rajarhat, EM Bypass and Garia NATIONAL PROPERTY INDEX Index fell by 5% for the Jul-Sep 2015 continued to be the top localities in terms quarter. As observed in the other cities, The City Index for Ahmedabad of availability of actively listed Delhi also saw an overall increase in the properties. experienced an increment of 1% as active listings but only 30% of the localities compared to the previous quarter. An saw any positive movement in the price Mumbai noted the second highest increase in supply across all localities of the points. Except for a few localities remaining increment in the City Index after Bengaluru. city was observed. While some localities at the same price level as the previous While the City Index improved by 3%, the witnessed a double digit growth in supply, it quarter, most of the 69% of the balance Listed Price Monitor remained at the same is important to add, that most of them had localities saw a decline in capital values. level as the previous quarter. The localities low base numbers initially. Of the localities saw an average increase of less than 1% in in the city, a substantial 43% of them Ghaziabad saw a 2% decline in the Index capital values with 62% localities having a witnessed an increase in prices. values accompanied by 2% decline in the positive movement. Most localities along City Price Monitor as well. This was on More than 65% localities in the the Western Expressway had an increment account of 73% localities witnessing a drop in capital values. Bengaluru real estate market witnessed an in values. Indirapuram and Raj Nagar increase in the average capital values and Extension continued to be the dominant The City Index as well as the Listed Price the overall supply also increased by 10%. localities in terms of supply in the Monitor for Noida remained stable in the Bengaluru City Index again saw maximum Ghaziabad real estate market. Both these previous quarter. While 53% of the localities appreciation of 4% in the last quarter. The together contributed more than 50% of the witnessed a positive movement in capital Eastern and South-East parts of Bengaluru total supply in the market. values, the overall increment in the city was comprising of Whitefield, Sarjapur Road and very low. Noida Extension and sectors Electronic City, remainrd the largest In Gurgaon , the supply of active listings situated along the Noida-Greater Noida contributors to the supply in the city. in the market increased marginally by 3%. Expressway continued to be a source of the A drop in the average capital values arrested most active listings. The Chennai City Index saw a marginal the growth of the City Index. More than increment of 1% in the Index values in this 60% of the tracked localities witnessed a With 63% localities experiencing positive quarter. There was an 11% increase in active drop in the average capital values. Sohna growth in capital values and an overall listings in the city with 57% of the localities Road area remained the most preferred increase in the number of active listings, witnessing positive movement in capital locality in the city. Pune saw a 1% increase in the City Index. values. Overall, the Price Monitor for the city However, the Listed Price Monitor decreased fell by 5% as drop in values was more than Unlike the previous quarter where by 1%. Kharadi and Vimang Nagar in the what could be compensated by the price Hyderabad had the second highest North of the city together accounted for increment. increment in the Index Value, the city most of the listed properties. Apart from recorded a drop of 4% in the City Index Delhi again witnessed a decline in the them, Wakad and Wagholi also contributed Values during this quarter. The western part greatly to the supply of the actively listed City Index while the Listed Price Monitor of Hyderabad centered on Gachibowli and remained at the same level. The Delhi City properties in the Pune real estate market. VOL5, ISSUE 2; JUL-SEP, FY 2015-16 03 propindex.magicbricks.com
INDIAN REAL ESTATE MARKET E in that locality. The analysis has been done for Given the high inventory level and low sales FUTURE SCENARIO a two year period from Jul-Sep 2013 to Jul-Sep volume, the market needs to correct the prices. 2015. For ease of comparison, cities have been Our analysis shows the prices have been The Indian real estate market has been divided into segments having weighted stagnant for over two years now. When this is stagnant in terms of transaction and capital average price greater than Rs 6,000 per sq ft indexed to inflation, the values have dropped. value of real estate assets. The number of new and with prices lower than Rs 6,000 per sq ft. project launches has tapered drastically in Short of announcing a cut in prices, most cities compared to the earlier years. With As the graphs shows, the prices in the cities developers have used innovative schemes to small exceptions, sale of units has fallen have either seen very low rise or outright drop. lower the acquisition cost. These vary from further from the decline of the previous year. In case of the four cities with weighted attractive payment schemes to giving freebies average price greater than Rs 6,000 per sq ft, like modular kitchen and other white goods to The fall in unit sales over the last few years Pune with 11.8% increase is the only city with offering discounts or waiver on charges like car has translated into a large inventory of unsold any visible price movement. parking, club house etc. The developers are stock. By one estimate, the total number of also ready to offer up to 25% discount on the Mumbai and Delhi have seen a drop in unsold inventory exceeds 700,000 units and total cost in case it is a one time payment. the market will require more than four years to values. In fact, Delhi witnessed the largest clear this. One of the main reasons for the fall drop amongst all cities. Gurgaon also remained The impact of the schemes is such that prices have already come down by 10%-20%. This is demonstrated with an example. Let’s assume a 1400 sq ft property costs Rs 60 lakh, Rs 4,286 per sq ft in capital values. This comes with a subvention scheme where the developer pays the EMI on the loan amount during the construction period. The EMI is transferred to the consumer on possession. Assuming a loan amount of Rs 48 lakh (80% of the unit value), interest rate of 9.5% and a loan tenure of 25 years, the EMI is Rs 41,937 per month. The developer pays this EMI for the construction period of 24 months. The total in new project launches is the level of unsold stagnant with negligent growth. Even in case amount paid is slightly more than Rs 10 lakh. inventory in the market. of Pune, when inflation is taken into account, Simply put, the actual cost to the buyer is the price increase is nullified. Consequent to this logjam , the prices have Rs 50 lakh, translating into a rate of Rs 3,567 also remained stagnant over the last couple of In case of the other seven cities with a per sq ft, a discount of almost 17%. years. To understand the price trends, weighted average of less than Rs 6,000 per sq Developers are expecting that freebies and Magicbricks analyzed the weighted average ft, the story repeats itself. With 10.8% increase attractive payment plans combined with the price for 11 cities in the PropIndex. during the evaluation period, Chennai saw the recent drop in home loan rates will help in highest increment. With the exception of reviving sales. Therefore, in short to medium The weighted average price for a city takes Ghaziabad, other cities also saw a marginal terms, developers are unlikely to have any into account the average price of its localities price increase. The prices in Ghaziabad city incentive in dropping the prices upfront. and the weights assigned to each is the supply actually dropped by 6.6%. DELHI propindex.magicbricks.com 04 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[CITY INDEX] The Delhi City Index saw the highest decline amongst all the cities during Jul-Sep 2015 -5% 175 150 125 100 75
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The City Index declined by 5% while the Listed Price Monitor remained at same level as last quarter
DELHI REAL ESTATE IN PERSPECTIVE Q2 2015 DELHI As it happened
Ghaziabad, Faridabad, Karnal and DDA simplifies the lift policy to New Delhi Municipal Corporation help people install lifts in old flats area are NCR’s nominations for Smart Centre invites invesments from Cities project private developers in the housing Cities to now work to prepare the sector to achieve the goal of action plan for smart city ‘Housing for all by 2022 ‘ HOT NOT Centre includes real estate agents in the Central Advisory Delhi is one of the most polluted cities in the world, a Council through an amendment study has revealed
NDMC gets record property tax collection of over Rising levels of pollution forced NGT order Environment Rs 290 crore, the highest in the last 5 years Tax on diesel trucks entering boundaries of Delhi RBI cut its policy rate by a more than expected 50 basis After serious concerns were raised regarding East points to a four-year low of 6.75% Kidwai Nagar redevelopment, NGT orders inspection VOL5, ISSUE 2; JUL-SEP, FY 2015-16 05 propindex.magicbricks.com DELHI
[PROPINDEX - DELHI] The City Index witnessed 5% decline in Jul-Sep 2015 quarter. There is an overall decrease in the average capital values for 69% of localities across the city. This caused Listed Price Monitor to remain stagnant at same level as last quarter
[Key Takeaways] l New Delhi has the costliest residential real Most of the localities falling in this l Affordable properties of New Delhi, falling estate and despite a dearth of organized segment are located in South and Central in the range of Rs 4,000-8,000 per sq ft residential supply due to lack of parts of the city gained 4% market share to reach almost developable land, it continues to house a one-fourth of the city’s supply New Delhi holds most of the units in the significant population and caters to all l Rs 8,000- 10,000 per sq ft category, Almost 20% of the listings in New Delhi socioeconomic classes l making up 30% of the market share originated from Dwarka region, making it More than 700 localities are tracked in the the top micro-market for residential real l Greater Kailash-I and II are key city where most of the units are in the l estate supply in the city. The average price contributors to the city’s supply of luxury Rs 8,000-10,000 per sq ft category, for this micro-market is currently at properties, making up 4% of the overall making up 30% of the market share Rs 8,200 per sq ft, while ranging between supply in the market Rs 4,500-9,100 per sq ft Though the city is known for its expensive l Properties in the price of Rs 8,000-12,000 realty, in shadow of the ongoing l Other big contributors being Uttam Nagar, per sq ft gained the most, climbing by 5% l slowdown, properties costlier than which is responsible for 7% of the city’s over the last two years and reaching 37%. Rs 18,000 per sq ft lost 4% of the share overall supply, followed by Rohini which The properties in this price range are the over the last two years, falling to 22%. contributes 5% of the overall supply biggest contributors to the city’s supply
Shades of grey in Delhi realty EDITORIAL
he Jul-Sep 2015 quarter saw a 6% The real estate industry has been longing Zone in the heart of New Delhi by 5.13 sq km. If decline in the prices of affordable for a hike in the 2.5 FAR to address the problem implemented, this will make one of the most Thousing. Janakpuri, Uttam Nagar and of providing accommodation to all and coveted and expensive areas up for grabs. Rohini saw minimal transactions and plots also realising the dream of 'Housing for All'. Rapid Another boost is the govt’s announcement witnessed an all-time low. urbanisation has put pressure on the limited to invite investors and search for partnerships The L-Zone of Delhi has landed in land resources, especially in Delhi. The delayed with Sweden to deliver affordable solutions to controversy as builders and real estate agents declaration has resulted in over-crowding of issues of waste management to energy - are selling properties and constructing urbanization in the city. efficient public transport. Once this is achieved, buildings despite the Delhi Development Amidst these woes, the land-starved Delhi will be the smartest city to invest. Authority‘s (DDA) disapproval. The govt is yet to capital city has had some news to rejoice as The impact of these declarations has had a notify the zone and thus, all unregistered well in this quarter. DDA issued possession reverberating effect with the aspirational properties are illegal. DDA has issued notices letters to those Rohini Residential Scheme- quotient inching higher. East Kidwai Nagar is warning about such purchases. 1981 allottees who have paid fully. undergoing redevelopment, while GK-I and II Unruly traffic also dampened buyer’s To protect vacant land parcels from were the key contributors to the luxury market. sentiments, with most in search of localities encroachment, DDA decided to auction small Dwarka region was the top contributor of with easy commute. Unlike other cities, whose plots in densely-populated areas. Online data residential housing units in Delhi. suburbs are attractive, in the NCR the situation for this will be available by the year-end for In the coming months, it will be interesting is almost the same as within the peripheries. public scrutiny. to note whether the sector sees a rise in The Modi government has also not done The Urban Development Ministry transactions. If the prices fall further, there is enough to boost the real estate sector. proclaimed to reduce the Lutyens' Bungalow hope of improvement. Namrata Ekka, Magicbricks Bureau DELHI propindex.magicbricks.com 06 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
GPRICE TREND ANALYSISH [Residential distribution by capital value ] The city that serves all
l Properties in New Delhi are available Extension, South Extension and GK-I & II. starting at a low of only Rs 3,000 per sq ft Most of these localities belong to the and goes up till Rs 80,000 per sq ft premium neighborhoods of South Delhi
l Around 15% of the properties are l The Rs 4,000-5,000 per sq ft range, which available in the Rs 4,000-6,000 per sq ft was identified with around 15% of the category, which defines the majority of supply, has Uttam Nagar as its largest the affordable supply in the city market, with around 7% of the overall listings from New Delhi originating here l The third highest number of listings, covering 13% of the pie, are available in l The costliest properties of the city are in the Rs 18,000-22,000 per sq ft range. the Central and South Delhi areas, where Notable micro-markets in this category notable localities include Jor Bagh, are Maharani Bagh, Hauz Khas, New Gulmohar Park, Chanakyapuri, Anand Friends Colony, Sarvapriya Vihar, Lok, Anand Niketan, Defence Colony and Safdarjung Enclave, Commonwealth Vasant Vihar. All properties here are above Games Village, Green Park, Jangpura Rs 27,000 per sq ft
[Major price segments: Q-on-Q trend] Realty catching up to reality l Contrary to Gurgaon, where significant where most properties on sale are redevelopments on individual pieces of price stickiness was seen, almost all of developed by organized developers on land. As a result, the price increases for New Delhi witnessed a drop in prices over new pieces of land, in New Delhi most vacant land parcels, which forced the the last two years. One prime reason for properties on sale were either constructed developers of Gurgaon to keep the prices this deviation is that unlike Gurgaon, over the last 30 -40 years or they are high, has not been a trend in Delhi VOL5, ISSUE 2; JUL-SEP, FY 2015-16 07 propindex.magicbricks.com DELHI
[Major price segments - price increment] Poor becomes poorer the overall supply (15%). The highest supply of all micro-markets (30%) was seen in the Rs 8,000-10,000 per sq ft range, which lost 8% in average price during this quarter
l While all the price ranges witnessed a fall, the least was observed in the Rs 18,000-22,000 per sq ft range, where the prices fell by only 4% over the preceding two year period. The highest fall in rupee terms was witnessed in the ‘above Rs 22,000 per sq ft’ price range where prices fell by Rs 2,300 per sq ft on an overage
l All the categories in New Delhi witnessed reason for this is that the economic l On the pricing front, while all the city’s a drop in prices ranging between 4% and slowdown hit the affordability of the eight price segments fell, the biggest 24% over the last two years. A clear trend middle class the most loser on absolute basis was the costliest has emerged among the micro-markets, at above Rs 22,000 per sq ft price range, The highest fall of 24% was witnessed in where the price drops have been higher in l which lost a whopping Rs 2,300 per sq ft the Rs 4,000-6,000 per sq ft price range, the lower priced micro-markets and lower from its average pricing which constitutes the second largest of in the higher priced ones. The primary
l The heat map shows the localities of Delhi in different colour shades depending upon the prevalent capital value in the locality. A bright colour indicates higher value while the lesser shade indicates lower values
l In case of Delhi, the capital values are high across the board and hence, expensive is a relative term. Localities in the core of Delhi are the most expensive, followed by those which are towards the southern part. Localities in West Delhi also have high capital values. Though these would be third in the order of ranking
l The format of development is that Central Delhi consists of large independent houses. These are amongst the most expensive addresses in the country. In the case of South and West Delhi, the format is the same. Houses generally tend to be bigger in South Delhi. Ownership could be of the entire house or a floor in the house
l Another expensive address in South Delhi is along and off the Mehrauli Road and Mehrauli-Gurgaon Road. This is the ‘farm-house’ belt where people have independent dwelling units with large land area around it
l Localities in West and South-West like Rohini and Dwarka and others outside the premium zones, cater to demand from the middle class population. The nature of development is largely multi-storey apartments, which allows to spread out the cost DELHI propindex.magicbricks.com 08 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[City - weighted average price trend] Yearly tumble takes over seasonal beats
l There have been significant but consistent the financial year, the working class will l The prices have traditionally dropped seasonal and yearly variations in pricing in achieve increased salaries and bonuses during the Jul-Dec half year period in the New Delhi over the last two years. The city and look to invest in the real estate city, due to developers providing freebies witnessed improvement in prices in the and discounts during the Diwali and New However on a yearly basis, the prices have Jan-Mar 2015 quarter, which further l Year time period fallen significantly this year, by 9% in the improved in the Apr-Jun 2015 quarter current year, compared to 6% last year, l On a quarterly basis, prices in the l This seasonal increase is due to the resulting in a fall in prices during the Jul-Dec 2014 period fell by a significant developer’s expectation that at the end of Apr-Jun 2015 quarter 7% over the preceding quarters GPRICE MOVEMENT F KEY LOCALITIESH [Segment 1: Rs 22,000 sq ft & above] Ultra luxury finally stares down
l There are forty eight localities in New Delhi with prices above Rs 22,000 per sq ft, with the top contributors being Vasant Vihar and Defence Colony, together contributing 30% of the segment’s supply with an average price of Rs 28,000 per sq ft. The costliest major locality in this price range is Jor Bagh with an average listing price of Rs 57,400 per sq ft
l Overall, the weighted average price of the localities in this budget range exhibited a 7.2% price decrease over the last two years, on account of more than 12% price decrease witnessed in Vasant Vihar and Defence Colony. The prices fell the most in West End Society, where properties are now available at 18% less than the price they were available at two years ago VOL5, ISSUE 2; JUL-SEP, FY 2015-16 09 propindex.magicbricks.com DELHI
[Segment 2: Rs 18,000 - Rs22,000 sq ft] South Delhi a little southern – Part I
l TThere are 39 localities in New Delhi with prices in the budget range of Rs 18,000-22,000 per sq ft. Greater Kailash I and II together are the biggest markets in this price segment where more than 35% of the segment’s supply originates, followed by Safdarjung Enclave at 12%. Hauz Khas is the costliest locality in the city with an average price of Rs 21,600 per sq ft
l Overall, the weighted average price of the localities in the city within this price range exhibited a 4% decrease over the previous two years on account of prices in Greater Kailash I falling by 4%. The prices fell the most in South Extension II, where the residential properties are available at 14% less than the price they were available at two years ago
[Segment 3: Rs 14,000 - Rs 17,999 sq ft] South Delhi a little southern – Part II
l There are 54 localities in New Delhi with prices in the range of Rs 14,000-18,000 per sq ft. Supply is fairly distributed in this price range. Saket is the biggest market in this segment where 23% of the segment’s supply originates, followed by Chittaranjan Park at 16%. Saket is also the costliest locality here with an average price of Rs 17,650 per sq ft
l Overall, the weighted average price of the localities in this budget range exhibited a 5.5% price decrease over the last two years on account of prices in Saket and Chittaranjan Park falling by 2% and 8%, respectively. The prices fell the most in Lajpat Nagar III, where properties are available at 10% less than the price they were available at two years ago
[Segment 4: Rs 12,000 - Rs 13,999 sq ft] Measurable price correction across Delhi - I
l There are 72 localities in New Delhi with prices in the range of Rs 12,000-14,000 per sq ft. Vasant Kunj is the biggest market in this price bracket where 23% of the segment’s supply originates, followed by Mayur Vihar Phase-I and Kalkaji, each contributing 9%. Lajpat Nagar is the costliest locality here with an average price of Rs 13,750 per sq ft
l Overall, the weighted average price of the localities in this budget range exhibited a 10.3% price decrease over the last two years on account of most of the localities here witnessing a price decrease of 4% or more. The prices fell the most in Rohini Sector-9, where properties are available at 16% less than the price they were available at two years ago DELHI propindex.magicbricks.com 10 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[Segment 5: Rs 10,000 - Rs 11,999 sq ft] Measurable price correction across Delhi - II
l There are 86 localities in New Delhi with prices in the range of Rs 10,000-12,000 per sq ft. Indraprastha Extension is the biggest market in this price bracket where around 17% of the supply originates, followed by Paschim Vihar and Janakpuri, each contributing 11%. Kirti Nagar is the costliest locality here with an average price of Rs 11,975 per sq ft
l Overall, the weighted average price of the localities in this budget range exhibited a significant price decrease of 7.6% over the last two years on account of most of the localities here witnessing a price decrease of more than 6%. The prices fell the most in Paschim Vihar, where properties are available at 11% less than the price they were available at two years ago
[Segment 6: Rs 8,000 - Rs 9,999 sq ft] Boon for working class of Gurgaon
l There are 88 localities in New Delhi with prices in the budget range of Rs 8,000-10,000 per sq ft. Dwarka is the biggest market in this price bracket in the city where a whopping three-fourth of the segment’s supply is seen to originate. Vasundhara Enclave is the costliest locality in this price range with an average price of Rs 9,995 per sq ft
l Overall, the weighted average price of the localities in this budget range exhibited a price increase of 8.5% over the last two years on account of most sectors of Dwarka witnessing a price decrease of 7% or more. The prices fell the most in Vikaspuri, where residential properties are available at 13% less than the price they were available at two years ago
[Segment 7: Rs 6,000 - Rs 7,999 sq ft] Measurable price correction across Delhi - III
l There are 93 localities in New Delhi with prices in the budget range of Rs 6,000-8,000 per sq ft. Rohini is the biggest market in this price bracket where around 37% of the supply in the city originates, leaving the remaining supply fairly distributed. Dwarka Sector-18B is the costliest locality in this segment with an average price of Rs 7,940 per sq ft
l Overall, the weighted average price of the localities in this range exhibited a price increase of 12% over the last two years although the individual micro-markets in this price range exhibited variations from +6% to -23%. The prices fell the most in Rohini Sector-24, where properties are available at 23% less than the price they were available at two years ago VOL5, ISSUE 2; JUL-SEP, FY 2015-16 11 propindex.magicbricks.com DELHI
[Segment 8: Rs 4,000 - Rs 5,999 sq ft] Affordable hit the hardest
l There are 158 localities in New Delhi with prices in the range of Rs 4,000-6,000 per sq ft. Uttam Nagar is the biggest market in this price bracket where around 34% of the supply in the city originates. This is followed by Dwarka at 11% supply. Madhu Vihar is the costliest locality in this segment with an average price of Rs 5,980 per sq ft
l Overall, the weighted average price of the localities in this budget range exhibited a price decrease of a whopping 23.7% over the last two years on account of most sectors of Dwarka witnessing a price decrease of 7% or more. The prices fell the most in Dwarka (old), where properties are available at 37 % less than the price they were available at two years ago
[Price increment: top & bottom five localities] The market has remained stagnant across the board
l The major localities of New Delhi witnessed price changes in the l Significant decline in prices was witnessed across the localities of range of +2% to -37%. Only four major localities achieved a positive New Delhi with one-fourth of the key localities in the city had prices price increase in the last two years although restricted to only 2% falling by more than 10%, while 70% of the key localities had prices falling by more than 5%, over the last two years l While two of the four localities achieving positive price increases belonged to South Delhi and had an average price of more than l Of the localities that shed the most price in the city, key localities Rs 21,000 per sq ft, the other two locations belonged to the South- from South Delhi were Vasant Vihar, with an average price of West Delhi area and have an average price of Rs 7,000 per sq ft (Hari Rs 27,850 per sq ft and Defence Colony with an average price of Nagar) and Rs 8,850 per sq ft (Dwarka Sector-17) Rs 28,900 per sq ft. Other localities belonged to the West of Delhi, and had average prices in the range starting from Rs 5,000 per sq ft l The last locality, namely Mahavir Enclave Part-I, also belongs to and going up to Rs 13,000 per sq ft South-West Delhi and has an average price of Rs 5,200 per sq ft DELHI propindex.magicbricks.com 12 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
LISTED PRICE MONITOR RENT MONITOR
0% GK-II, a premium residential area in South Delhi, recorded a 3% rise l GK-II, one of the premium and popular localities recorded a 2% rise l in capital values. Located in South Delhi, it boasts of good in rental values. It is well connected via the ORR. Prices hardly dip in connectivity, well-established physical and social infrastructure and the locality and therefore, it is considered a good investment option. a strategic position Nizamuddin and New Delhi Railway Stations and the Indira Gandhi International Airport are connected via ORR and NH-8 l Safdarjunf Enclave, GK-I and Indraprashtha Extension witnessed no change in property rates. Both Safdarjung Enclave and GK-I have l Saket, Safdarjung Enclave, Kalkaji and Dwarka Sector-12 saw an good connectivity via the Outer Ring Road. Apart from developed increase of 2% in rental values. Safdarjung Enclave and Kalkaji are infrastructure, both the areas are also located in South Delhi and popular residential destinations receive constant demand from buyers l Dwarka Sector-11 saw no change in property rates this quarter. It is preferred by tenants due to its metro and road connectivity. l Capital values of Dwarka Sector-11 dipped this quarter by 4%. Proximity to the airport, ample availability of housing options and Proximity to various engineering and law schools has made it metro connectivity makes it a popular residential area favourable for both students and families
Y I E L D M E T E R
Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Greater Kailash 1 31.75 18,555 2.05% Indraprastha Extn 18.75 11,770 1.91% Dwarka Sector 12 13.25 8,375 1.90% Dwarka Sector 11 13.00 9,115 1.71% Saket 26.50 17,645 1.80% Safdarjung Enclave 31.75 20,910 1.82% Uttam Nagar 12.00 4,160 3.46% Dwarka Sector 19 12.75 8,620 1.77% Dwarka Sector 10 12.75 8,645 1.77% Dwarka Sector 2 12.25 8,720 1.69%
l Uttam Nagar tops the gross yield at 3.46% due to Metro l The city Yield Meter shows the relative rental return on property connectivity and developed social infrastructure. Multi-storey across the past three years. Yield is the percentage of the capital apartments are the most available property type in the locality and annual rental values at a given point. If a buyer purchases a house for a certain value X and receives an annual rental return of Other localities topping the gross yield include Greater Kailash-I l Y on the property, then the ratio of Y to X classifies the yield for which recorded a yield of 2.05%. This was followed by the concerned property. For the purpose of calculation, Indraprastha Extension at 1.91% maintenance and other costs are not factored VOL5, ISSUE 2; JUL-SEP, FY 2015-16 13 propindex.magicbricks.com DELHI
Capital Values – Locality Wise DELHI Average Listed Residential Apartment Prices
Locality Capital Values Locality Capital Values (Rs/Sq feet) (Rs/Sq feet)
Aashirwaad Chowk 7680 to 9170 Kalkaji 12260 to 15900 Alaknanda 12440 to 15810 Khanpur 3580 to 4640 Anand Niketan 26530 to 35180 Lajpat Nagar 3 15270 to 20660 Chhattarpur 4160 to 5390 Laxmi Nagar 5630 to 7220 Chittaranjan Park 13550 to 17140 Mahavir Enclave Part 1 4810 to 5900 Defence Colony 25930 to 34250 Malviya Nagar 10630 to 13450 Dwarka Mor 4060 to 5180 Mayur Vihar 1 10910 to 14030 Dwarka Sector 2 8170 to 9710 Mehrauli 3730 to 4850 Dwarka Sector 3 7440 to 9170 Mohan Garden 3610 to 4740 Dwarka Sector 4 7890 to 9590 New Friends Colony 19050 to 25880 Dwarka Sector 5 8050 to 9440 Om Vihar 3850 to 4870 Dwarka Sector 6 8020 to 9640 Panchsheel Enclave 21420 to 26780 Dwarka Sector 7 7720 to 9250 Panchsheel Park 21490 to 28250 Dwarka Sector 9 7900 to 9380 Paschim Vihar 9940 to 12710 Dwarka Sector 10 8100 to 9620 Patparganj 10330 to 12960 Dwarka Sector 11 8420 to 10360 Pitampura 10080 to 13210 Dwarka Sector 12 7800 to 9410 Rajouri Garden 8500 to 11360 Dwarka Sector 13 7660 to 9280 Rohini Sector 13 11150 to 14220 Dwarka Sector 18 8280 to 9880 Rohini Sector 24 6690 to 8420 Dwarka Sector 18B 7380 to 8950 Rohini Sector 25 5870 to 7250 Dwarka Sector 19 8000 to 9730 Rohini Sector 9 11600 to 14800 Dwarka Sector 22 8240 to 10130 Safdarjung Dev Area 24060 to 30460 Dwarka Sector 23 7670 to 9470 Safdarjung Enclave 19030 to 24300 Dwarka Sector 24 3070 to 3760 Saket 16110 to 20410 East of Kailash 15730 to 20870 Sarita Vihar 9680 to 12170 Greater Kailash 1 16840 to 21640 Sarvapriya Vihar 19410 to 24560 Greater Kailash 2 18220 to 24140 Sarvodaya Enclave 19290 to 24460 Green Park 18020 to 23330 Shivalik 14760 to 18400 Green Park Extn 19220 to 25460 South Extn 2 16370 to 21340 Gulmohar Park 27240 to 35390 Uttam Nagar 3810 to 4800 Hauz Khas 19610 to 25280 Vasant Kunj Sector B 15020 to 18920 Indraprastha Extn 10860 to 13410 Vasant Kunj Sector C 15530 to 19580 Janakpuri 10390 to 13320 Vasant Kunj Sector D 12430 to 15730 Jangpura Extn 17810 to 22490 Vasant Vihar 24980 to 33010 Jasola 9400 to 12540 Vasundhara Enclave 9280 to 11280 Kailash Colony 14960 to 19550 Vikaspuri 8500 to 10950 GURGAON propindex.magicbricks.com 14 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[CITY INDEX] The Gurgaon City Index witnessed positive movement in during Jul-Sep 2015 2%
175 150 125 100 75
50 100 105 108 119 124 119 124 126 132 137 140 137 139 141 139 139 139 139 142 25 0 1 11 1 ’11 12 12 2 ’12 3 13 3 ’13 ’14 14 14 ’14 ’15 ’15 15 JFM’1 AMJ’ JAS’1 OND JFM’ AMJ’ JAS’1 OND JFM’1 AMJ’ JAS’1 OND JFM AMJ’ JAS’ OND JFM AMJ JAS’
The City Index increased by 2% while the Listed Price Monitor saw a decline of 1% over last quarter
GURGAON REAL ESTATE IN PERSPECTIVE Q2 2015 GURGAON As it happened
Though Gurgaon lost the race in the Gurgaon gets live investments of list of 100 Smart Cities, the city Rs 3.5 lakh crore for almost 70% authorities plan to make it smart of total investments worth Rs 5 Haryana Govt constitutes state-level lakh crore attracted by Haryana and city-level task forces to monitor HUDA holds a draw of plots to allot infrastructure development in to people displaced by Dwarka Gurgaon by taking inputs from RWAs Expressway project HOT NOT Gurgaon to get free Wi-Fi hotspots across four areas from After illegal mining, now 100 illegal hutments in the Nov 2015. Also, its 13 sectors will soon get better street- still-forested Aravalis hamper the eco-sensitive zone, lights with an estimate of Rs 2 crore media reports say The Reserve Bank of India cut its policy rate by more In Oct 2015 Centre said that work on the 'Metrino Pod' than expected 50 basis points to a four-year low of project, connecting Delhi and Manesar, has got 6.75%. This move brings cheer to the realty sector delayed and is expected to begin within 4 months VOL5, ISSUE 2; JUL-SEP, FY 2015-16 15 propindex.magicbricks.com GURGAON
[PROPINDEX - GURGAON] The City Index witnessed 2% gain for Jul-Sep 2015 quarter. There is an overall decrease in the average capital values for 63% of localities across the city. This caused Listed Price Monitor to decrease by 1 % as compared to last quarter
[Key Takeaways] l Despite strong headwinds over the last l More than one-fifth of the properties in l In overall supply terms the Rs 4,000-5,000 two years for residential real estate in the city lie in the Rs 7,000-8,000 per sq ft per sq ft price bracket has lost the most, North India, Gurgaon still holds most of budget range witnessing a decrease in its market share the units in the above Rs 50 lakh category, from more than 18% to less than 16% in The city witnessed increase in sales price making up more than 80% of the real l the previous two years in the Apr-Jun 2015 period while prices estate inventory dropped during the Oct-Dec 2014 period. l The Rs 9,000-11,000 per sq ft range has l In spite of more than 50 months of This is due to developers providing gained the most in the last two years, inventory in the city, prices have not only freebies and discounts during the Diwali witnessing an increase in its share of the failed to come down in the last two years and New Year total market to more than 8% from a little but in fact, they have increased for some less than 7% The price increase was most in the of the localities l Rs 6,000-7,000 per sq ft range at 2.3%, l Gurgaon city has witnessed a dearth of l Developers in the region are disinclined to while maximum fall in prices was seen in residential property supply in the decreasing prices in their projects. Instead, the Rs 7,000-8,000 per sq ft range Rs 6,000-7,000 per sq ft budget range, they have put on hold the construction for which remained a measly 5% for the last Overall, Sohna Road and Golf Course Extn want of improvement in sales velocity l two years Road lead the supply in Gurgaon
Checks and Balances is the need of the hour EDITORIAL
he Gurgaon housing market lost sales Another reason is faulty infrastructure. To expand the residential reservoir, a momentum in the Jul-Sep 2015 Inspite of residents paying development/ consortium of 11 builders has been promoting Tquarter. Real estate transactions were maintenance charges, the roads are in a Sohna as a habitable and affordable region. at a bare minimum despite the fact that across pitiable condition. This problem is prevalent in They have plans to market it as 'South of Gurgaon property prices have dropped. Among both, premium and affordable areas. Gurgaon'. On its part, the govt has notified the the few transactions that did occur, 3BHK units Dwelling with the shortcomings are small villages of Bandwadi, Baliyawas, Darbaripur were most preferred by buyers and investors. successes and growth potential as well. and Noorpur to be included in the limits of the Reasons for the drop in prices are several. Haryana Urban Development Authority (HUDA) Gurgaon Municipal Corporation. For example, governance is a major issue. The has reached out to the Resident’s Welfare The govt showed solidarity to the sector by administration has failed to meet the needs of Associations (RWAs) for recommendations on reducing the minimum land requirement to the city. Waste management is a prime concern infrastructural deficiencies in the city’s sectors. build townships from 100 to 25 acre in its New as the accumulated waste of the city is being Transport has been a bane to the city for Integrated Licencing Policy (NILP). This is disposed off at a site in Central Gurgaon, many years now. Things have changed this expected to help energise the market and is threatening the health of the entire city and if quarter with private companies like OLA applicable to high and hyper potential areas. not checked can break into an epidemic. initiating bus shuttle services across the city. HUDA has also announced the allotment of Security is also a concern. The city has Similarly, the government has proposed a alternative plots to people displaced by the many ‘dark spots’ in Golf Course Extn, Cyber surface transport service. Though at a nascent Dwarka Expressway project. City, Sohna Region, areas near Signature Tower, stage, this will plug the gap in the transport If the administration resolves the issues in IFFCO Chowk, etc. where streetlights are absent network and resolve commuting complications time, the market might make a turnaround and and commuting is an issue. which are sorely felt by the people. respond well in the coming months. Namrata Ekka, Magicbricks Bureau GURGAON propindex.magicbricks.com 16 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
=PRICE TREND ANALYSIS> [Residential distribution by capital value ] Gurgaon not so affordable
l In affordability terms, while the increased by 10%, to reach more than affordable segment of the supply has lost 40% of the city’s supply 3.8% of its share in the last two years, the Most of the affordable projects are located luxury segment has increased its share by l on the Dwarka Expressway and the new 1.5% to reach almost 15% of total supply Gurgaon Region with prices in the budget l While most of the luxury residential range of Rs 4000-6,000 per sq ft properties above Rs 13,000 per sq ft lie on Sohna Road and Golf Course Extension the Golf Course Road, the luxury l Road are hubs for most of the upper mid properties in the Rs 11,000-13,000 per segment supply, catering to the price sq ft segment are mostly situated in DLF range of Rs 8,000-9,000 per sq ft Phase II, III, IV and V The Rs 6,000-8,000 per sq ft range of the While the affordable segment, with prices l l lower mid segment is identified with below Rs 6,000 per sq ft, shrunk by 10% projects on the Southern Peripheral Road to reach 34% of the supply, the share of (SPR) and the Dwarka Expressway region properties above Rs 8,000 per sq ft has
[Major price segments: Q-on-Q trend] Luxury market climbs while rest are stagnant l Inspite of more than 50 months of l Developers in the region have observed l The recent launches in the above inventory in the city, the real estate prices acute disinclination for decreasing prices Rs 13,000 per sq ft category has actually have failed to come down in the previous in their projects, and instead, have put on propped up the price of the Rs 13,000 per two years and in fact, have increased for hold the construction for want of sq ft and above range by 3.4% per annum some of the localities improvement in sales velocity. over the last three quarters VOL5, ISSUE 2; JUL-SEP, FY 2015-16 17 propindex.magicbricks.com GURGAON
[Major price segments - price increment] Mixed results for various segments l The rest of the 70% of supply, in the range of Rs 5,000-13,000 per sq ft saw a 4% fall on average over the last two years, which is also much less than what most end- users expect in this era of discounts
l The highest fall of 6% was witnessed in the Rs 7,000-8,000 per sq ft range, which constitutes the largest part of the supply, with most of it concentrated on Sohna Road and along the Golf Course Extn Road
l The highest rise of a moderate 2.3% was witnessed in the Rs 6,000-7,000 per sq ft range, constituting only 5% of the supply, with projects along SPR and the Dwarka Expressway regions l Overall, three of the eight price ranges l Of this, over 80% of the supply is for the that have been considered for the study, below Rs 7,000 per sq ft category, a fact l The settlement of the litigation on the together constituting less than 30% of the that displays the inability of the land earmarked for the under- available supply, witnessed positive developers in reducing prices for the lower construction Dwarka Expressway by the growth over the last two years, by less priced units, which is known for its sky High Court of Chandigarh was largely than 2.5%. high land prices responsible for the rise in prices here
l The adjacent heat map shows the localities in different colour shades depending upon the prevalent capital values in the locality. A bright colour indicates higher values while one with lesser shade indicates lower values
l Gurgaon can be divided into five price segments. The bright red coloured areas on the eastern half of the map consists of established prime localities like DLF Phases and Golf Course Road. The development consists of large independent houses and luxury apartment complexes
l The second segment towards the South consists of Golf Course Road Extn which is home to new development. Projects in this zone have been launched over the last 5-6 years and consists of premium apartment and villa units
l The third zone is around Sohna Road with less capital values as compared to Golf Course Road Extn. This again consists of large multi-storey apartment complexes with interspersing of horizontal development. The area to the West of Sohna Road is also seeing large scale development where projects are now ready for delivery
l Sectors along and off the Dwarka Expressway are zones with largest development in Gurgaon. The development is centred on the under-construction Dwarka Expressway (Northern Peripheral Road) which will connect Gurgaon with Dwarka in Delhi. These consist of large mid-segment and substantial premium development GURGAON propindex.magicbricks.com 18 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[City - weighted average price trend] Seasonal pricing in the era of discounts
l There has been significant but consistent and New Year season. The seasonal the lowest price points in the yearly trend, seasonal as well as yearly variations in increase in the Apr-Jun 2015 period is due when compared to a price variance of pricing in Gurgaon over the last two years. to the developers’ expectation that at the Rs 220 per sq ft which was witnessed in The city witnessed increase in sales price end of the financial year the working the quarterly trend in the Apr-Jun 2015 period, while prices class, with increased salaries and bonuses, Overall, this variance as a percentage of dropped during the Oct-Dec 2014 period would look to invest in the real estate l average prices is only 2-3%, which is l This is due to developers providing l The prices showed a lesser variance of significantly less than what was seen in freebies and discounts during the Diwali Rs 140 per sq ft between the highest to some of the other TIER-I cities =PRICE MOVEMENT < KEY LOCALITIES> [Segment 1: Rs 10,000 sq ft & above] Ultra luxury still out of reach
l There are nine localities in Gurgaon with prices above Rs 13,000 per sq ft, though more than 80% of the listings witnessed in this price range are from one locality, namely the Golf Course Road, where the average price is Rs 13,400 per sq ft. The listings here have increased by more than 50% over the last two years. The second largest locality in listing terms is Sector 42, constituting only 6% of the total of this price range
l Overall, the weighted average price of the localities in the budget range exhibited a 1.4% increase over the last two years on account of 1.6% price increase witnessed in Golf Course Road, which accounts for bulk of the listings in this range. The prices fell the most in Sector 42, where properties are available at 22% less price than they were available at two years ago VOL5, ISSUE 2; JUL-SEP, FY 2015-16 19 propindex.magicbricks.com GURGAON
[Segment 2: Rs 9,000 - Rs 9,999 sq ft] Luxury correcting to market conditions
l There are 22 localities in Gurgaon with prices in the range of Rs 11,000-13,000 per sq ft. DLF Phase-5 is the biggest market in this price bracket, where more than 20% of the supply originates. This is followed by DLF Phase-2 at 17% and MG Road at 12%. DLF Phase 5 is also considered the costliest locality in the city, with an average price of Rs 12,700 per sq ft
l Overall, the weighted average price of the localities exhibited a 4% decrease over the previous two years on account of prices in DLF Phase-5 and MG Road falling by 5% and 3%, respectively. Maximum fall of prices was observed in DLF Phase-3, where the residential properties are available at 9% less than the price they were available at two years ago
[Segment 3: Rs 8,000 - Rs 8,999 sq ft] Affordable luxury segment yet to correct
l There are 43 localities in Gurgaon with prices in the range of Rs 9,000-11,000 per sq ft. Supply was fairly distributed in this price range. Sector 58 is the biggest market where around 12% of the supply originates. This is followed by Sector 50 and Central Park-II, both at 10%. Sector 31 is also the costliest locality with an average price of Rs 10,900 per sq ft
l Overall, the weighted average price of the localities in the city exhibited a 3% decrease over the previous two years. This was because most of the localities here witnessed a decrease of 3% or more during this period. The prices fell the most in Sector 58, where properties are now available at 14% less than what they were available at two years ago
[Segment 4: Rs 7,000 - Rs 7,999 sq ft] Upper mid segment showing sporadic corrections
l There are 39 localities in Gurgaon with prices in the budget range of Rs 8,000-9,000 per sq ft. Sector 66 is the biggest real estate market in the city, where around 18% of the supply is seen to originate. This area is followed by Sector 48 at 12% and Sector 47 at 10%. Sector 48 of Gurgaon is also the costliest locality with an average price of Rs 8,950 per sq ft
l Overall, the weighted average price of the localities in the city exhibited a 3% decrease over the last two years as most of the localities here witnessed a price decrease of 2% or more. The realty prices fell the most in Sector 60, where residential properties are now available at 20% less than the price they were available at two years ago GURGAON propindex.magicbricks.com 20 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[Segment 5: Rs 6,000 - Rs 6,999 sq ft] ower mid segment correcting more than the overall market
l There are 40 localities in Gurgaon with prices in the range of Rs 7,000-8,000 per sq ft. Sohna Road is the biggest real estate market in this price bracket where around 20% of the supply originates. Remaining of the supply is fairly distributed with the second biggest locality of origin (Sector 65) having only 8% of the listings. Malibu Town is the costliest locality with an average price of Rs 7,965 per sq ft
l Overall, the weighted average price of the localities exhibited a significant decrease of 6% over the last two years since most of the localities witnessed a price decrease of over 5%. The prices fell the most in Sector 51 and Sushant Lok-II, where they are now available at 9% less than what they were available at two years ago
[Segment 6: Rs 5,000 - Rs 5,999 sq ft] Upper Affordable segment sporadically corrects
l There are 22 localities in Gurgaon with prices in the budget range of Rs 6,000-7,000 per sq ft. Sector 70 is the biggest real estate market in the city, where around 20% of the supply originates. This is followed by Sector 71 at 15% and Ardee City at 13%. Ardee City is also the costliest locality here having an average price of Rs 6,900 per sq ft
l Overall, the weighted average price of the localities exhibited a price increase of 2.3% over the last two years as most of the bigger localities – Sectors 70 and 71 - witnessed price increase of 3% and 6%, respectively. The prices fell the most in Sector 38, where properties are now available at 11% less than what they were available at two years ago
[Segment 7: Rs 4,000 - Rs 4,999 sq ft] Affordable segment corrects in some pockets but yet to follow market sentiments
l There are 35 localities in Gurgaon with prices in the range of Rs 5,000-6,000 per sq ft. Among these, Sector 82 is the biggest real estate market where around 16% of the supply originates. This is followed by Sector 83 at 12% and Sector 81 at 10%. Sector 70A is considered the costliest locality in the city with an average price of Rs 5,910 per sq ft
l Overall, the weighted average price of the localities exhibited a marginal increase of 0.7% over the last two years, although the individual micro-markets in the city exhibited variations from +11% to -11%. The prices fell the most in Sector 82A, where properties are now available at 11% less than the price they were available at two years ago VOL5, ISSUE 2; JUL-SEP, FY 2015-16 21 propindex.magicbricks.com GURGAON
[Segment 8: Rs 3,000 - Rs 3,999 sq ft] Lower affordable segment corrects in some pockets but cost pressures setting the lower limit
l There are 35 localities in Gurgaon with prices in the budget range of Rs 4,000-5,000 per sq ft. Sector 86 is considered the biggest market in this price bracket where around 11% of the supply originates. This area is followed by Sector 85 at 10% and Sector 90 at 9%. Sector 70 is said to be the costliest locality here with an average price of Rs 4,985 per sq ft
l Overall, the weighted average price of the localities in this price range within the city exhibited a marginal price decrease of 0.7% over the last two years although the individual micro-markets in this price segment exhibited variations from +7% to -8%. The prices fell the most in Sector 99, where properties are now available at 8% less than the price they were available at two years ago
[Price increment: top & bottom five localities ] Key markets in Gurgaon continue to remain unaffordable
l The major localities of Gurgaon witnessed price changes in the range l Significant similarity of decline in real estate prices was witnessed of +9.4% to -22%. Sector 82, which has witnessed the highest price across the Gurgaon market. Within the city four out of the five increase of 9.4% among major micro-markets, is also the fourth localities, having the highest price decline, witnessed a drop in the largest micro market of Gurgaon in terms of listings range of 8.5% to 9%
l Sector 82 is relatively cheaper compared to the rest of Gurgaon, with l Although the properties in the city differed substantially on average an average price of Rs 5,500 per sq ft, as compared to the average prices, with the highest being Sector 42, having an average price of price of Gurgaon at Rs 7,700 per sq ft. Except Central Park-II, which Rs 14,400 per sq ft and the lowest being Sector 104 at Rs 6,400 per has an average price of Rs 9,500 per sq ft, all the other top micro- sq ft. Sector 42 witnessed the highest price drop of more than 20%, markets of the city with major gains had their average prices below majorly due to new launches happening at lower rates over the last Rs 6,500 per sq ft two years GURGAON propindex.magicbricks.com 22 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
LISTED PRICE MONITOR RENT MONITOR
-1% Sectors 47, 56 and DLF City Phase-2 are localities in Gurgaon with l Sectors 66, 86 and DLF Golf Course Road witnessed the highest l capital appreciation with 1%, 3% and 1%, respectively. The former leading rental appreciation. The reason behind the rising rental two areas are experiencing widespread residential development values is proximity of these localities to various office hubs spread across the city l The increase in property rates on the DLF Golf Course Road can be attributed to the construction of the Rapid Metro as it increases l DLF City Phase-2 also owes its appreciation to easy connectivity. connectivity. Premium under-construction residential projects can Located close to MG Road Metro Station, MG Road and NH-8, it is also be found here popular amongst the professionals working in Cyber City, Gurgaon and Delhi l Sohna Road and Sector 47 saw least appreciation of prices. Traffic congestion is the reason behind Sohna Road’s consistent low values l Sectors 47 and 56 are close to office hubs on Sohna Road and Golf in the last two quarters. Sector 47 could point to the fact that no Course Road. Both these roads are linked by Gold Course Extension new residential townships are coming up in the area and only Road which is smooth and traffic free. Presence of a developed social independent houses and builder floors have their presence infrastructure also enhances its rental potential
Y I E L D M E T E R
Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield DLF City Phase 5 23.00 12,700 2.17% Dlf City Phase 4 23.50 11,390 2.48% Sector 56 14.50 7,370 2.36% DLF City Phase 2 21.25 11,525 2.21% Sector 47 15.75 8,475 2.23% Sohna Road 15.75 7,815 2.42% Sector 49 15.75 8,815 2.14% Sector 48 16.25 8,955 2.18% Sector 86 6.00 4,360 1.65% Sector 90 6.00 4,440 1.62%
l DLF City Phase-4 recorded the highest gross yield at 2.48%, l The city’s Yield Meter shows the relative rental returns on followed by Sohna Road at 2.42%. The former is strategically residential property over the past three years. Yield is the located with easy access to the Gurgaon-Faridabad Road, Golf percentage between the capital and annual rental values at a Course Road and the center of Gurgaon given point of time. If a buyer purchases a house for a certain value X and receives an annual rental return of Y, then the ratio of Sector 56 clocked 2.36% gross yield due to proximity to office l Y to X is the yield of the property. For calculation, maintenance hubs, ample residential options and proximity to various markets and other costs have not been factored VOL5, ISSUE 2; JUL-SEP, FY 2015-16 23 propindex.magicbricks.com GURGAON
Capital Values – Locality Wise GURGAON Average Listed Residential Apartment Prices
Locality Capital Values Locality Capital Values (Rs/Sq feet) (Rs/Sq feet)
Ardee City 6280 to 8020 Sector 57 7050 to 8770 Central Park 2 9090 to 10260 Sector 58 9600 to 10880 DLF City Phase 1 9210 to 11780 Sector 61 8400 to 9190 DLF City Phase 2 10450 to 13460 Sector 62 8010 to 9290 DLF City Phase 4 10610 to 12790 Sector 65 6460 to 8200 DLF City Phase 5 12070 to 13830 Sector 66 7650 to 8940 DLF Golf Course Road 12430 to 15230 Sector 67 6960 to 8580 Dwarka Expressway 4730 to 6150 Sector 68 5360 to 6730 Golf Course Extn Road 7830 to 9600 Sector 69 5470 to 6660 Gurgaon - Faridabad Road 6900 to 8270 Sector 70 5720 to 7010 Huda Colony 6410 to 8440 Sector 71 5980 to 6890 Malibu Town 7260 to 9230 Sector 72 6930 to 8130 MG Road 11070 to 13130 Sector 77 4530 to 5410 Nirvana Country 8130 to 9800 Sector 78 5030 to 6200 Palam Vihar 7050 to 8920 Sector 79 5410 to 6460 Sector 102 5240 to 6540 Sector 81 4800 to 5620 Sector 103 3900 to 4650 Sector 81A 4840 to 5640 Sector 106 4890 to 5550 Sector 82 4920 to 6450 Sector 109 5310 to 6420 Sector 82A 5250 to 6770 Sector 110A 5990 to 7220 Sector 83 4850 to 5850 Sector 111 4930 to 7260 Sector 84 4120 to 5090 Sector 27 10510 to 12920 Sector 85 4260 to 5110 Sector 31 10100 to 12330 Sector 86 4000 to 5010 Sector 33 6960 to 8740 Sector 89 4430 to 5290 Sector 37C 4220 to 5060 Sector 90 4140 to 4990 Sector 37D 4010 to 4930 Sector 91 3890 to 4850 Sector 43 7570 to 9720 Sector 92 3820 to 4980 Sector 46 6670 to 8650 Sohna 3960 to 4920 Sector 47 7720 to 9830 Sohna Road 6960 to 9360 Sector 48 8250 to 10220 South City 1 8740 to 11470 Sector 49 8260 to 9810 South City 2 7550 to 9600 Sector 50 8330 to 10250 Sushant Lok 9650 to 12400 Sector 51 7090 to 9060 Sushant Lok 1 8220 to 10790 Sector 52 6390 to 8760 Sushant Lok 2 6410 to 8180 Sector 54 10830 to 13940 Sushant Lok 3 6860 to 8680 Sector 56 6810 to 8380 Vatika City 8950 to 10380 NOIDA propindex.magicbricks.com 24 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
[CITY INDEX] The Noida City Index remained stagnant at earlier level during Jul-Sep 2015 0% 200 175 150 125 100 75 50 100 113 122 144 146 155 158 160 167 173 172 173 173 173 174 175 190 186 186 25 0 1 11 1 ’11 12 12 2 ’12 3 13 3 ’13 ’14 14 14 ’14 ’15 ’15 15 JFM’1 AMJ’ JAS’1 OND JFM’ AMJ’ JAS’1 OND JFM’1 AMJ’ JAS’1 OND JFM AMJ’ JAS’ OND JFM AMJ JAS’
The City Index remained stagnant with the Listed Price Monitor also not witnessing any movement in the current quarter
NOIDA REAL ESTATE IN PERSPECTIVE Q2 2015 NOIDA As it happened
Allahabad HC ruled demolition of Three development authorities of 2 illegal multi-storey buildings in Gautam Budh Nagar visited Noida and Greater Noida in Oct 2015 various states to study how they make their cities liveable Noida Authority announced the auction of 100 commercial plots in Integrated Traffic Management different sizes at the base price of and Smart City Surveillance Rs 1.59 lakh per square metre Systems to come up in Noida HOT NOT Delhi Metro connectivity to Noida Extension, Noida’s Though Noida Extension is going to deliver 50,000 Sector 142 gets the nod. This improves the prospects of projects, it is not good news for all home buyers as both the areas real estate market they are still facing issues from builders, reports say Having initiated tenders for door-to-door garbage Noida is one of the most polluted areas of the National collection and disposal project, Noida Authority Capital Region and needs to take some preventive promises a clean city in 2016 measures to curb it, a study says VOL5, ISSUE 2; JUL-SEP, FY 2015-16 25 propindex.magicbricks.com NOIDA
[PROPINDEX - NOIDA] The City Index remained stagnant during Jul-Sep 2015 quarter. There is an overall decrease in the average capital values for 44% of localities across the city. This caused Listed Price Monitor to remain stagnant at same level as last quarter
[Key Takeaways] l Noida is the affordable to mid-segment weighted average price for Noida saw increment of 6.3% over the previous two market of the National Capital Region marginal increment over the last two year year evaluation period in the Noida real (NCR) with the largest share of real estate period between Jul-Sep 2013 to Jul-Sep estate market development. The affordable to mid- 2015. The status of price stagnation can When the price increment is adjusted for segment (Rs 3,000–4,499 per sq ft) forms be gauged from the fact that the highest l average inflation over the previous two 39% share of supply in the Noida market price appreciation over the two year years, it can be observed that the price period was 6.3% l The two largest price segments with a levels have actually declined combined share of 47.5% supply are the The weighted average increased by only l The general economic scenario along with Rs 4,500–4,999 per sq ft and the 3.2% over the Jul-Sep 2013-2015 period. l lack of consumer confidence in the Rs 5,000–5,499 per sq ft budget ranges. However, after witnessing a decline of 3% developer community has translated into The higher price brackets from Rs 5,500 in the Jan-Mar 2015 quarter, the price did large unsold inventory. Even if the per sq ft onwards have a 15.6% share of recover by 5.3% to reach Rs 4,795 per sq ft transactions in the market pick up, the the Noida market as of the previous quarter overall price levels are likely to remain the l With none of the eight price segments l The budget segment of Rs 5,500–5,999 same in the medium term as market tries registering a double digit growth, the per sq ft saw the maximum price to clear a large unsold inventory
Noida/Greater Noida continue to suffer from high unsold inventory EDITORIAL
he twin cities of Noida and Greater Greater Noida Expressway, the Dadri Road, the uncertainty over the upcoming International Noida together forms the largest Noida-Greater Noida Link Road and the Greater airport, has affected the marketability. The Torganized residential market in NCR, Noida Main Road. Going forward, the biggest dampener had a regulatory angle and making up as much as 40% of the supply and transportation will balance itself as multiple encompassed more than a lakh home demand. Together these are an essential lines are planned, including the 28.8 km Noida- deliveries. The NGT order on halting extension of Delhi and responsible for Greater Noida Metro Link (expected to be construction, and the farmer’s stir for increased providing housing and business facilities to a completed by 2017), and the Noida Sector 62- compensation for land had strong repudiating significant population. Indirapuram Link Road. Overall, the cities score effect on the majority of home buyers in Noida, on road connectivity but the proposed metro bringing down sales to a trickle. The Ministry of Both these form the biggest planned lines are expected to significantly bolster the Environment and Forest (MoEF) directing development of the NCR and also provides land regional connectivity and provide alternatives developers to offer possession of over 50,000 for development of residential, commercial, to the congested NH-24 and the Noida-Greater homes has provided the much needed relief to industrial and social infrastructure. Along with Noida Expressway. home buyers of Noida and Noida Extension. providing a bulk of affordable and mid segment housing, the cities have also been In spite of scoring well on infrastructure, But even such reliefs may fall short of active recipients of corporates, relocating from the twin cities have underperformed due to improving real estate sentiments, which much costlier markets of Delhi and Gurgaon excessive supply in the heydays, and as a result, together hold more than half the unsold suffer from surfeit of unsold stock. Lack luster inventory of Delhi NCR. While sales are There is limited metro connectivity and performance of the Buddh International Circuit happening in Southern Noida and Noida Extn, much of the transport infrastructure is in attracting consumers, along with the medium term outlook paints negatively. dependent on just four roads – the Noida- Devendra Singh Lohmor, Magicbricks Bureau NOIDA propindex.magicbricks.com 26 VOL5, ISSUE 2; JUL-SEP, FY 2015-16
l The graph shows the distribution of Rs 4,500–4,999 per sq ft and the residential assets by capital values. The Rs 5,000–5,499 per sq ft. Options in these share of different price brackets affirms price brackets can be either in the mid or Noida’s position as a destination of lower premium segments depending on the size to mid-segment demand and supply of the apartment. Developers tend to build larger apartments which increases The affordable to mid-segment range of l the overall acquisition cost Rs 3,000–4,499 per sq ft has about 39% share of the supply. In geographical l The higher price brackets from Rs 5,500 terms, this is spread primarily across per sq ft onwards have a 15.6% share. Greater Noida extension. The dominant Localities in the core city or close to it have format in this range is 2BHK as the smaller options in these ranges. While the size of the apartments help to keep the underlying rate may be competitive as acquisition cost low for consumers compared to Delhi and Gurgaon, it is the size of the apartments and added features The two largest price brackets with a l which push up the acquisition cost combined share of 47.5% are the [Major price segments: Q-on-Q trend] The market as a whole has remained stagnant l To analyse the price trends, localities have then tracked in these segments over a l Trend analysis shows that capital values in been clubbed together into price 2-year period starting from Jul-Sep 2013 localities across all price segments have segments basis capital value (Rs/sq ft) remained stagnant. No segment has seen Value for the segment is a weighted prevalent at the end of Jul-Sep 2015 l any seasonal volatility in prices indicating average of prices in different localities quarter. The change in capital values is lack of any buying spurt as well VOL5, ISSUE 2; JUL-SEP, FY 2015-16 27 propindex.magicbricks.com NOIDA [Major price segments - price increment] Market witnessed minimal price increment l When price increments are adjusted for inflation over the last two years, it is observed that all price segments have actually recorded a decline in the capital values as compared to the corresponding period in 2013 l The two largest segments of the Rs 4,500–4,999 per sq ft and the Rs 5,000–5,499 per sq ft have seen a growth of only 2.1% and 5.1%, respectively. The lowest budget segment saw a growth of only 5.4%. The luxury segment had even lower growth figures l The minimal movement across all segments is indicative of very less transaction activity in the market owning l The adjacent graph shows the increment l No segment has shown a worthwhile observed in the weighted average capital increment and have remained stagnant to general market scenario values in each price segment over a two over the last two years. None of the l With large unsold inventory and low year period from Jul-Sep 2013 to segments have recorded a double digit transaction volume, this situation is likely Jul-Sep 2015 growth, the highest growth is only 6.3% to persist in long term as well l The adjacent heat map shows the localities of Noida and Greater Noida in different colour shades depending upon the prevalent capital value (Rs/sq ft). A bright coloured locality indicates higher capital values while one with lesser shade indicates lower capital value l Growth of the city started in sectors closest to Delhi and moved outwards along multiple growth axes. Noida- Greater Noida Expressway and Noida Extension are the two dominant localities across all price brackets l Preference in the lower budget segments was in the peripheral areas while the Noida-Greater Noida Expressway dominates all other budget segments l Overall, Greater Noida has higher concentration of demand and supply in the lower budget segments l Consumer preference and supply in the higher budget segments is spread across Noida-Greater Noida Expressway and sectors close to the start point of the Expressway. Localities situated adjacent to Delhi and having better accessibility and connectivity also feature in the premium and luxury price segments l While price gradient in Rs/sq ft generally decreases as one moves out of city center, the overall acquisition cost may not follow this trend, because developers tend to build larger sized units to increase per transaction value NOIDA propindex.magicbricks.com 28 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 [City - weighted average price trend] The market has witnessed minimal price movement l The graphs show the movement in has grown only 3.2% over Jul-Sep 2013- any worthwhile price movement. When weighted average price in the Noida 2015 period. However, after witnessing a indexed to inflation, the prices have market, which considers the price points decline of 3% in January-March 2015, the actually gone down by 5%+ over the across all segments. The first graph shows price did recover by 5.3% to reach Rs Jul-Sep 2013 quarter price level Year-on-Year movement while the second 4,795 per sq.ft as of last quarter Given the fact that inventory has gives Quarter-on-Quarter movement l l Overall, the market has remained remained unsold at these price levels as l The market has seen minimal price stagnant as not even one of the well, any uptick on transaction is unlikely movement over the evaluation period. It contributing price segments have seen to translate into price increment l The luxury segment in the Noida real estate market consists of eleven major localities. Most of these are situated off or along the initial stretch of the Noida-Greater Noida Expressway. The segment has seen miniscule weighted average price movement of 2.9% over the last two years l Sector 93B, situated mid-way along the Noida-Greater Noida Expressway, saw the highest increment of 9% while Sector 50, located closer to City Center had 3.2% drop in prices l While most other localities in this segment have also seen an increment in value, the percentage increase has been in single digits. The luxury segment has remained dormant in the Noida market over the last two years VOL5, ISSUE 2; JUL-SEP, FY 2015-16 29 propindex.magicbricks.com NOIDA [Segment 2: Rs 6,000 - Rs 6,499 per sq ft ] This component of luxury segment also remains stagnant l The localities in this budget range forms the next level in the luxury segment than the one mentioned earlier. And in line with the trend in the luxury segment, it has also seen marginal price increment of only 2% over the last two years l Sector 45 has the highest price increase of 4% while Sector 62 saw a 3% drop in values over the study period. There are four major localities in this segment and these are co-located with other localities in the luxury and premium segments l The projects launched in this budget segment are also witnessing low sales velocity and thus, the demand situation is further exacerbated by construction delays [Segment 3: Rs 5,500 - Rs 5,999 per sq ft] Segment continues the trend of luxury l There are two major localities which fall in this budget range - Sectors 107 and 108. Both these localites are situated in proximity to each other wherein Sector 108 is situated along the Noida-Greater Noida Expressway. Together, both these account for 1.8% of the total active listings in the market l This budget segment has seen a weighted average price increase of 6% over the two years period. Individually, each sector has seen a 6% and 5% increment in capital values over the same period l While the percentage increase in this segment is low, both the sectors have seen a continuous increase in capital values over the last two year period [Segment 4: Rs 5,000 - Rs 5,499 per sq ft] Largest price segment in Noida remains stagnant l This is the largest individual price segment in the Noida market and accounts for 24.6% of the total active listings. In terms of price increment, the segment saw a 5% increase in weighted average price over the two year period l The highest increment in this budget range was of 8% which was seen in Sector 78 while the lowest was 1% in Sector 120. The localities in this segment are all situated in Noida either in the East or along the southern stretches of the Noida-Greater Noida Expressway l This segment has seen large-scale development activity and with low sales, also suffers from a large inventory pile-up situation. This is the main cause for the stagnant prices in the segment NOIDA propindex.magicbricks.com 30 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 [Segment 5: : Rs 4,500 - Rs 4,999 per sq ft ] Second largest price segment in Noida has stagnant prices l After the previous segment, this is the second largest price segment in the Noida market with 22.8% share of active listings. The localities in this segment are co-located with the Rs 4,500–4,999 per sq ft budget range along the eastern part of Noida and off the southern stretch of the Noida-Greater Noida Expressway l The segment saw a still lower price increment than the previous segment – the price increased by only 2.1% over the last two years. The segment also suffered because of large supply and fall in consumer demand l This fall in consumer demand has also been triggered equally by market conditions and the lack of consumer confidence in the developer community [Segment 6: Rs 4,000 - Rs 4,499 per sq ft ] Same price increment pattern as larger Noida market l This price bracket is also an important component of the Noida real estate market as it has the third highest share of the 8.2% of active listings. There are a total of eleven major localities in this price range and these are almost equally split between Noida proper and Greater Noida l Though, localities in Noida account for almost 85% share of the active listings. Overall, the segment has seen weighted average price increment of only 3.4%. l Pari Chowk in Greater Noida has seen the maximum appreciation with 19% price increment. Sector 134 in Noida, on the other hand, saw a decrease of 2% in capital values. Other localities also saw minor single digit increment in capital values [Segment 7: Rs 3,500 - Rs 3,999 per sq ft ] The worst performing price segment in Noida l Overall, this budget segment has seen the minimal price increment in the Noida market. The weighted average price in this price bracket has remained stagnant over the two year period l Individually, some of the localities did witness a double digit price increment. For example, Sector Mu in Greater Noida followed by Gautam Buddh Nagar saw a double digit price increment of 22% and 13%, respectively. While others like Chi-Phi saw a 7% decline in property values in this segment l The overall percentage in this budget range remained stagnant while some localities saw a double digit growth. This is because localities with lesser increment/fall in capital values contributes more in terms of supply in this segment VOL5, ISSUE 2; JUL-SEP, FY 2015-16 31 propindex.magicbricks.com NOIDA [Segment 8: Rs 3,000 - Rs 3,499 per sq ft ] Same price increment trend as the overall market l Localities in this budget range forms the lowest priced segment of the Noida market. Noida Extension or Greater Noida West has emerged as the low cost destination in the region l Other localities in this segment are peripheral areas. Like in the overall market, this segment has also seen only marginal price increment of 5.4%. Localities like Yamuna Expressway have seen a double digit growth as it started from a very low base l Apart from Noida Extension, the pace of development is relatively slow. Lot of projects are in the initial stages of development. The infrastructure development is also yet to catch-up with the planned development. With lesser number of people investing in real estate, the rates here have also remained stagnant [Price increment: top & bottom five localities] Only few localities have seen price appreciation l The graph shows localities with maximum price increase in Noida l The graph shows localities with minimum price increase/maximum over the last two year period price drop in Noida over the last two year period l Except for Sector 93B, all other localities are in the Greater Noida l Except for Noida Extension, all other localities are situated in Noida. region and have a small base where price increment has taken place Noida extension has remained stagnant inspite of low base because of a very large supply base and unsold inventory. Due to project l Sector-Mu in Greater Noida witnessed maximum price appreciation delays and policy related issues, transaction activity has been low of 22% over the last two years. The locality has seen gradual price and is likely to remain this way in the medium to long term increment on Q-on-Q basis over the evaluation period l Other sectors have remained stagnant because of the general market l Same is the case with Pari Chowk, which saw the next highest price conditions and consumer’s lack of confidence in developers on the increase of 19%. It is one of the prime areas of Greater Noida and has aspect of timely project delivery and construction quality seen gradual price appreciation with development of other areas NOIDA propindex.magicbricks.com 32 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 LISTED PRICE MONITOR RENT MONITOR 0% The highest rental appreciation was witnessed by Sector 104 due to l Substantial price rise was seen in Hosiery Complex due to the growth l of industries, especially hosiery. The area saw a capital appreciation construction of good infrastructure and easy connectivity via the of only 5% recently. The locality has now been renamed Noida Noida-Greater Noida Expressway. There are a number of Special Phase-II Extn and is closest to the Noida City Centre Metro Station Economic Zones (SEZs), Universities and MNCs located in the area Sectors 93B, 120, 137 and Zeta 1 witnessed no appreciation in rental l Pari Chowk and Sector 93B witnessed capital appreciation in recent l times. There is easy connectivity of the area due to the metro which values as compared to the previous quarter where capital connects Dwarka to Noida City Center to Pari Chowk. Moreover, appreciation was seen. These areas are in close proximity to the industrial development is taking place in these areas due to which commercial set-ups and connect to the NSL Tech Zone SEZ and Noida there is a rise in demand City Center Metro Station Sectors 50, 76, 93A, 119 and 121 saw no rental appreciation. These l Sectors 76 and 110 witnessed negative growth in capital values. This l was because of a slack in the buyer’s demand for properties and areas have good civic infrastructure along with availability of houses project execution delays at affordable prices Y I E L D M E T E R Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Sector 93A 15.00 7,405 2.43% Sector 137 11.00 5,240 2.52% Sector 76 12.00 4,950 2.91% Sector 120 12.25 5,135 2.86% Sector 45 15.00 6,215 2.90% Zeta 1 7.75 3,350 2.78% Sector 110 12.25 5,365 2.74% Sector 100 14.50 5,990 2.90% Sector 121 12.00 4,880 2.95% Sector 77 11.75 5,440 2.59% l As the infrastructure is developing in this area, the yield l The city’s Yield Meter shows the relative rental return on percentage in most localities have been over 2% as most of them residential property across the past three years. Yield is the are witnessing growth percentage between capital and annual rental values at a given point of time. If a buyer purchases a house for a certain value X The highest yield of 2.91%, 2.90% and 2.95% was witnessed in l and receives an annual rental return of Y, then the ratio of Y to X Sectors 76, 100 and 121, respecitvely. This was due to the classifies the yield for the property. For the purpose of given availability of affordable homes and reasonable rental values calculation, maintenance and other costs are not factored VOL5, ISSUE 2; JUL-SEP, FY 2015-16 33 propindex.magicbricks.com NOIDA Capital Values – Locality Wise NOIDA Average Listed Residential Apartment Prices Locality Capital Values Locality Capital Values (Rs/Sq feet) (Rs/Sq feet) Noida Greater Noida Expwy 4330 to 5520 Sector 143 4350 to 4970 Sadarpur 5770 to 7070 Sector 150 4160 to 4810 Sarafabad 2860 to 3520 Sector 151 3080 to 3640 Sector 1 3180 to 3680 Sector 168 4750 to 5450 Sector 29 7030 to 8700 Sector 32 7780 to 8870 GREATER NOIDA Sector 34 6790 to 8270 Alpha 1 3680 to 4360 Sector 37 7980 to 10140 Alpha 2 4190 to 4800 Sector 44 10140 to 13410 Bironda 3610 to 4500 Sector 45 5840 to 6890 Chi 4 4670 to 5570 Sector 46 4980 to 5420 Chi 5 3290 to 3860 Sector 49 3190 to 4240 Chi-Phi 3530 to 4560 Sector 50 7090 to 9050 Chuharpur Khadar 3450 to 3850 Sector 61 6890 to 8300 Eta 1 3400 to 3940 Sector 62 5720 to 6690 Eta 2 3210 to 3920 Sector 70 4680 to 5940 Knowledge Park 5 2820 to 3540 Sector 73 2930 to 3570 Noida Extension 3100 to 3850 Sector 74 4780 to 5390 NRI City 3830 to 4750 Sector 100 5690 to 6520 Omega 1 3580 to 4320 Sector 104 7550 to 8610 Omicron 1 2980 to 3810 Sector 107 5480 to 6450 Omicron 3 2570 to 3200 Sector 108 5510 to 6260 Pari Chowk 3840 to 4910 Sector 110 5060 to 5920 Phi 2 3210 to 4120 Sector 113 4280 to 4950 PI 2 3120 to 3970 Sector 117 4360 to 5080 Sector 1 3190 to 3770 Sector 118 4100 to 4690 Sector 2 3030 to 3470 Sector 119 4520 to 5410 Sector 3 2970 to 3830 Sector 120 4830 to 5680 Sector 4 3140 to 4050 Sector 121 4530 to 5510 Sector MU 2 3100 to 3790 Sector 128 6280 to 7950 Sector-Pi 3450 to 4380 Sector 129 4360 to 4990 Shahberi 2450 to 3080 Sector 131 4420 to 5290 Sigma 4 3050 to 3620 Sector 133 4120 to 4900 Surajpur 2890 to 3640 Sector 134 4000 to 4620 Swarn Nagari 3610 to 4340 Sector 135 4350 to 4900 Yamuna Expressway 2900 to 3680 Sector 137 4980 to 5710 Zeta 1 3100 to 3800 GHAZIABAD propindex.magicbricks.com 34 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 [CITY INDEX] The Ghaziabad City Index saw a decline during Jul-Sep 2015 -2% 175 150 125 100 75 50 100 107 116 119 125 132 133 139 143 148 152 155 154 154 156 156 151 149 146 25 0 1 11 1 ’11 12 12 2 ’12 3 13 3 ’13 ’14 14 14 ’14 ’15 ’15 15 JFM’1 AMJ’ JAS’1 OND JFM’ AMJ’ JAS’1 OND JFM’1 AMJ’ JAS’1 OND JFM AMJ’ JAS’ OND JFM AMJ JAS’ The City Index declined by 2% with the Listed Price Monitor also declining by 2% during the last quarter GHAZIABAD REAL ESTATE IN PERSPECTIVE Q2 2015 GHAZIABAD As it happened Ghaziabad gets a shot in the arm by Land use changes in two villages making to the list of 100 Smart Cities for housing scheme in Ghaziabad, nomination shortlisted by the under which 3.5 lakh affordable Government of India homes will be created by 2016 GDA to construct 100 km of cycle Centre includes real estate agents tracks in Ghaziabad with an in the Central Advisory Council investment of Rs 22 crore through an Amendment HOT NOT GDA allocates Rs 400 crore for the second phase of the Ghaziabad is one of the most polluted city among the city's ambitious Delhi Metro project - from Dilshad National Capital Region, a study says Garden to New Bus Stand NGT issues notice to Centre over illegal construction on GDA to spend Rs 207 crore from the infrastructure the green belts in Ghaziabad development fund of Ghaziabad for various traffic Rising level of pollution in the Hindon river forces NGT improvement plans such as flyovers, foot bridges etc to direct authorities to form a committee VOL5, ISSUE 2; JUL-SEP, FY 2015-16 35 propindex.magicbricks.com GHAZIABAD [PROPINDEX - GHAZIABAD] The City Index declined by 2% during Jul-Sep 2015 quarter. There is an overall decrease in the average capital values for 73% of localities across the city. This caused Listed Price Monitor to drop by 2% as compared to the last quarter [Key Takeaways] l Ghaziabad has one of the cheapest ina few locations. Indirapuram is the high of 67.5% to the current 50%, the residential real estate and caters to all biggest contributor, making up 13% of opposite was seen to be true for the socioeconomic classes but the luxury the overall supply in the city. Vasundhara Rs 4,500 per sq ft segment at second position is responsible for 10% Ghaziabad market has most of its The most surprising trend was the drop in l of the city’s supply, while Raj Nagar l developments in the affordable segment. the Rs 5,000-5,500 per sq ft price range, Extension and Valishali, hold 8% and The Rs 4,000-5,000 per sq ft price range from 53% two years ago to the current 7%, respectively and the Rs 4,000-5,000 per sq ft price 28%. This is almost a 50% fall in the range each holds around 30% of the share l In the last two years, the economic market share and is highly unique for any slowdown has significantly hit the city the size of Ghaziabad As the premium segment of the city, the l affordability of the middle class in NCR. properties costlier than Rs 6,500 per sq ft Barring seasonal variations, the prices in This effect has been seen in Ghaziabad, l form not even 1% of the city’s supply, the city remained flat over the last two where the share of costlier properties has with most of these being located in the years. However, there has been significant fallen drastically in this period Surya Nagar locality variations among the different price While properties in the price range of ranges, with changes hovering between In terms of geographical distribution, the l l above Rs 4,500 per sq ft has fallen from a the range of +12% to -5% major part of the supply is concentrated Ghaziabad – prices fall as slowdown hits the middle class EDITORIAL Ghaziabad has traditionally been the Extension and Crossings Republik, wherein customers for residences is the white collar underdog of real estate in Delhi-NCR and has Indirapuram is the only premium locality. middle class, this move is expected to support conventionally suffered from a lack of severe sales in the medium term. commercial development, coupled with tough From a broader perspective, miniscule competition from the Noida–Greater Noida supply of premium residences and competition From a lengthier term perspective, market. Its emergence as a hub of industrial from the larger markets of Noida-Greater Noida significant improvements are required in the activity also undermined the profile of the city. in the affordable segment, has severely hit the social and physical infrastructure, together sales in the last few quarters, forcing with development of the commercial segment. While the road and social infrastructure developers and end-users to bring down the While this is still a long shot given the city’s climbed by leaps and bounds in Noida, prices. Accordingly, the average price has fallen profile. On the infrastructure side, work has Ghaziabad has yet to improve its decades old by 9% in the last year and by 2% during the started on the metro line from Dilshad Garden development. These factors have unremittingly last quarter. The supply has also reconfigured to New Bus Stand and is expected to be repressed the quality and quantity of itself, moving as much as a fourth of the city’s completed by early next year. Study is residential demand. As a result, the city now units priced over Rs 5,000 to below this range. underway for extending the Vaishali line upto houses 99% of its residential supply in the Mohan Nagar on one side and to connect under Rs 6,000 per sq ft bracket. On the monetary policy side, there was Sector 62 in Noida to Indirapuram. These lines some support from the RBI. On the back of are expected to bolster the regional Restriction in availability of bigger land reduction in repo rate by 50 basis points, most connectivity to Delhi and Noida, resulting in parcels has resulted in the city offering banks have opted to bring down the lending the resurgence of premium real estate significant organized supply of residences in a rates by 0.4%, apprising the home loan rates to redevelopment in areas like Indirapuram. few key locations of Indirapuram, Raj Nagar around 9.6%. Given that most of the target Devendra Singh Lohmor, Magicbricks Bureau GHAZIABAD propindex.magicbricks.com 36 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 =PRICE TREND ANALYSIS> [Residential distribution by capital value ] The city for affordable properties l Properties in Ghaziabad displayed only l The ultra-affordable category of the slight price variations. These were mostly Rs 2,500-3,000 per sq ft range, which has ranging between the Rs 2,500 per sq ft witnessed hardly any supply in nearby and the Rs 6,500 per sq ft segments Delhi, was identified with around 12% of the city’s supply. The notable micro- An overwhelming 50% of the properties l market in this category is NH-24, which in the city are available in the Rs 5,000- forms more than 50% of the supply in 6,000 per sq ft price category, which this budget range defines the majority of the premium supply within the city l Crossings Republik is another popular locality in Ghaziabad, which has The third highest number of listings cover l witnessed an average pricing of Rs 3,600 15% of the pie, where properties are per sq ft. This locality forms an available in the affordable segment of overwhelming 60% of Ghaziabad’s Rs 3,000-3,500 per sq ft. Notable micro- overall supply in the Rs 3,500-4,000 per market, Raj Nagar Extension, forms over sq ft price range 50% of the supply in this range [Major price segments - Q-on-Q trend] Watershed period l Although not as high as the drop seen in l Different segments in Ghaziabad have l The price drop or increase in the seasonal New Delhi, but almost all regions of displayed significant price variations. The trend has been less in the ‘below Rs 5,000 Ghaziabad have witnessed price drop over top three ranges, lying in the ‘above per sq ft range. The major reason is the the previous two years, though to a Rs 5,000 per sq ft range’ had their prices inability to offer freebies and discounts varying degree bottoming out in the Jan-Mar 2015 period from their wafer thin margins VOL5, ISSUE 2; JUL-SEP, FY 2015-16 37 propindex.magicbricks.com GHAZIABAD [Major price segments - price increment] Poor becomes poorer sq ft price range, which constitutes 10% of the city’s overall supply. This was followed by a rise of 9.5% in the Rs 3,000-3,500 per sq ft price range, which constitutes 15% of the overall supply l Even though five of the eight budget ranges witnessed a rise in average prices, the overall weighted average price of the city fell by a significant 7%. This trend was primarily because, on an average, the percentage of properties in the lower priced ranges have increased significantly over the evaluation period l For instance, as against two years ago, the properties which were cheaper than Rs 3,500 per sq ft have doubled in size to l A high degree of variance was seen in the saw increase, along with two more, where change in prices of the different ranges the decline was less than 2% 12%, and those properties which were over the last two years. This was between cheaper than Rs 5,000 per sq ft have The highest rise of 12% in average prices a high of 12% and a low of 5%. It was l increased by a whopping 26% to 70% of was witnessed in the Rs 4,000-4,500 per observed that 5 out of the 8 price ranges the city’s overall supply l The adjacent heat map shows the localities of Ghaziabad in different colour shades depending upon the prevalent capital value in the locality. A bright coloured locality indicates higher capital values while one with lesser shade indicates relatively lower capital values l Ghaziabad has emerged as a lesser expensive destination for the mid-segment in the National Capital Region (NCR). It drives demand basis its contiguity with Delhi, leading to easy accessibility and connectivity. With direct connectivity to Delhi, these localities help consumers to buy in their budget and commute to Delhi for work l Not surprisingly, localities with best access and connectivity to Delhi are the preferred addresses and also the most expensive ones in Ghaziabad. The price gradient decreases as one moves from west to east in Ghaziabad l Localities like Indirapuram, Vaishali, Kaushambi and Vasundhara in the western half are contiguous with each other and some localities also share borders with Delhi. These fall in the most expensive zone of the city l Those looking for relatively less expensive options can choose from two other major localities i.e. Raj Nagar Extension and Crossings Republik. Raj Nagar Extension has recently emerged with projects in the affordable budget range GHAZIABAD propindex.magicbricks.com 38 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 [City - weighted average price trend] The great leveler l Unlike the neighbouring New Delhi and quarters, with prices dropping by 9% over l The premium market of the city has Gurgaon, Ghaziabad has displayed little the last year to reach Rs 4,237 per sq ft shrunk substantially in the last one year seasonal variations over the last two This trend is in stark contrast to the Over the past year, properties in the years. Given the affordable profile of the l l preceding four quarters, where prices Rs 2,500-3,000 per sq ft and the Rs 3,000- properties, freebies and discounts make either increased or remained stagnant. In 3,500 per sq ft ranges have each gained less of an impact to the buyers that period, the city had gained around 5% share. As a result, those in the above l Rather than a seasonal trend, a sequential 2% to reach a high of Rs 4,643 per sq ft Rs 5,000 per sq ft range have lost a fall in prices was seen for the last four colossal 24% share in a year =PRICE MOVEMENT < KEY LOCALITIES> [Segment 1: >Rs 6,000 per sq ft] Selective premium unaffected l There are eleven localities in Ghaziabad with prices above Rs 6,000 per sq ft. The top contributor in this budget bracket was Ahinsa Khand-I, which contributed 45% of the segment’s supply in the city with an average price of Rs 6,125 per sq ft. The costliest major locality in this price range is Surya Nagar with an average listing price of Rs 7,130 per sq ft l Overall, the weighted average price of the localities in this budget range exhibited a 6.6% price increase over the last two years. This was on account of 11% price increase witnessed in Surya Nagar. In Ghaziabad, the prices fell the most in Ram Prastha, where properties are now available at only 1% less than the price they were available at two years ago VOL5, ISSUE 2; JUL-SEP, FY 2015-16 39 propindex.magicbricks.com GHAZIABAD [Segment 2: Rs 5,500 - 5,999 per sq ft] Monopoly at play l Although there are 13 localities in Ghaziabad with prices in the budget range of Rs 5,500-6,000 per sq ft but due to sporadic and uneven supply in most other localities of the city, Kaushambi is noted as the only market which truly represents the trends of this budget range l Overall in the city, the weighted average price of the localities in this price range exhibited a 2.7% price increase over the previous two years. It was observed that the prices in this budget range fell in only one location, which was Vaishali Extension. In this locality properties are available at 1% less than the price they were available at two years ago [Segment 3: Rs 5,000 - 5,499 per sq ft] Deference to market dynamics – Part I l There are 27 localities in Ghaziabad city with prices in the range of Rs 5,000-5,500 per sq ft. It has been observed that supply is fairly distributed in this price range l Indirapuram is the biggest market in this price bracket where 46% of the supply originates. This is followed by Vaishali at 11%. Vaibhav Khand is another costly locality here with an average price of Rs 5,470 per sq ft l Overall, the weighted average price of the localities in this range exhibited a small 0.9% price increase over the last two years on account of prices in Rampuri climbing by 29%. The prices fell the most in Indirapuram, where properties are now available at 1% less than the price they were available at two years ago [Segment 4: Rs 4,500 - 4,999 per sq ft] Law of averages plays on l There are 19 localities in the city of Ghaziabad showing prices in the budget range of Rs 4,500-5,000 per sq ft. Vsaundhra was the biggest market in this price bracket where 27% of the segment’s supply was seen to originate l Vasundhara was followed by Neeti Khand (I & II) at 19% and Shakti Khand-III at 13%. Vaishali Sector 5 was the costliest locality here with an average price of Rs 4,975 per sq ft l Overall, the weighted average price of the localities in this budget range exhibited a 5% price decrease over the last two years on account of prices in Vsaundhra falling by 4.5%. The prices fell the most in Vaishali Sector-6, where properties are now available at 11% less than the price they were available at two years ago GHAZIABAD propindex.magicbricks.com 40 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 [Segment 5: Rs 4,000 - 4,499 per sq ft] Unabated price rise l There are 24 localities in Ghaziabad with prices in the range of Rs 4,000-4,500 per sq ft. Vasundhra (1, 2A and 2B) was the biggest market in this price bracket where around 34% of the supply originates. This was followed by Gyan Khand at 22% and Nyay Khand-I at 12%. Gyan Khand-II is the costliest locality here with an average price of Rs 4,495 per sq ft l Overall, the weighted average price of the localities in this budget range exhibited a significant price increase of 12% over the last two years on account of most of the localities here witnessing price increase of more than 12%. The prices fell the most in Shakti Khand, where properties are now available at 10% less than the price they were available at two years ago [Segment 6: Rs 3,500 - 3,999 per sq ft] Deference to market dynamics – Part II l There are 15 localities in Ghaziabad city with prices in the range of Rs 3,500-4,000 per sq ft. Crossings Republik was the biggest market in this price bracket where a whopping three-fifth of the segment’s supply originates. This was followed by Shalimar Garden at 27%. Shalimar Garden is also the costliest locality here with an average price of Rs 3,950 per sq ft l Overall, the weighted average price of the localities in this budget range exhibited a significant increase in prices by 3.2% over the last two years on account of prices in Shalimar Garden rising by 7% l The prices fell the most in Rajendra Nagar- Sector-2, where properties are now available at 2% less than the price they were available at two years ago [Segment 7: Rs 3,000 - 3,499 per sq ft] Unabated price rise l There are 19 localities in Ghaziabad with prices in the range of Rs 3,000-3,500 per sq ft. Raj Nagar Extension is the biggest market in this price bracket where more than 50% of the supply originates l Raj Nagar Extension is followed by Siddhartha Vihar at 19% and Bhopura at 10%. Sain Vihar is the costliest locality here with an average price of Rs 3,485 per sq ft l Overall, the weighted average price of the localities in this budget range exhibited a price increase of 9.4% over the last two years on account of prices increasing in most of the localities in this range by 7% or more. The price increase was the least in Bhopura, where properties are now available at 2.5% more than the price they were available at two years ago VOL5, ISSUE 2; JUL-SEP, FY 2015-16 41 propindex.magicbricks.com GHAZIABAD [Segment 8: Rs 2,500 - 2,999 per sq ft] Affordable feeling the brunt l There are 17 localities in Ghaziabad with prices in the range of Rs 2,500-3,000 per sq ft. NH–24 is the biggest market in this bracket where more than 50% of the supply originates. This was followed by DLF Ankur Vihar at 17% and Govindpuram at 16%. Shastri Nagar is the costliest locality here with an average price of Rs 2,900 per sq ft l Overall, the weighted average price of the localities in this budget range exhibited a price decrease of 1.7% over the last two years, although individual localities in the city witnessed price changes of +4% to -22% l Prices fell the most in Shastri Nagar, where properties are now available at 21.5% less than the price they were available at two years ago [Price increment: top & bottom five localities] Low price localities witness large price gain l Localities of Ghaziabad witnessed price changes in the range of l Significant decline was witnessed for some localities with only three +34% to -22%. More than 70% of the major localities witnessed a prime localities having price drop of over 10%. Overall, one-fourth of positive price change in the last two years. Over 40% of these the prime localities had witnessed any amount of price decrease localities had more than 10% price increase l Three of the top five localities in the city, namely Govindpuram, l Two of the top five localities – Chander Nager and Rampuri - have Shastri Nagar and NH-58, are located in the eastern part of the city. weighted average prices above Rs 5,000 per sq ft and are located in All these three localities have weighted average prices below West Ghaziabad, near the Delhi border Rs 3,000 per sq ft, following the trend of budget localities shedding more price compared to the premium ones l Proximity to Delhi has kept an upward pressure on the prices. Other three localities are distributed across the city, with Loni in North- lThe remaining two localities are situated in West Ghaziabad and West, Shalimar Garden Extn–II in Central and Raj Nagar in the East have lost less than 5% in prices GHAZIABAD propindex.magicbricks.com 42 VOL5, ISSUE 2; JUL-SEP, FY 2015-16 LISTED PRICE MONITOR RENT MONITOR -2% l Govindpuram, in Ghaziabad, witnessed the highest capital l Vaishali and Abhay Khand in Indirapuram are leading in rental appreciation with 2%. The locality is a developing area and seeing appreciation. The reason could be proximity to various office spaces widespread residential real estate development across Noida and East Delhi l The increase in property rates in Govindpuram can be attributed to l These two localities owe the appreciation to easy connectivity with residential supply at affordable rates. Both ready-to-move-in builder both Delhi and Noida, due to their strategic location next to NH-24 floors and premium under-construction residential projects can be and the Vaishali Metro Station. The construction of a multi-level found in this area parking next to the metro station also promises to address the parking woes of the consumers l Indirapuram, Crossings Republik, Vasundhara, Vaishali and Shalimar Garden Extension saw a drop of 2-3% in the listed price monitor. l The overall demand for rental properties in the region seems to have Lack of demand for properties can be seen as the reason behind the dropped. Localities such as Raj Nagar Extension, Ahinsa Khand-1, low property values this quarter, even though a few new residential Shakti Khand-3, Vasundhara, Abhay Khand and Kaushambi which apartments are coming up. Multi-storey apartments, independent registered rental appreciation in the previous quarters are facing a houses and builder floors have their presence in these areas fall of 3-7% this quarter Y I E L D M E T E R Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Indirapuram 12.50 5,125 2.93% Vaishali 13.00 5,290 2.95% Vasundhara 10.75 4,775 2.70% Crossings Republik 7.25 3,580 2.43% Kaushambi 13.00 5,830 2.68% Raj Nagar Extn 7.00 3,235 2.60% Ahinsa Khand 1 12.50 6,125 2.45% Shakti Khand 3 13.00 4,550 3.43% Neeti Khand 1 13.00 4,555 3.42% l Shakti Khand-3 and Neeti Khand-1 in Indirapuram have recorded l The city’s Yield Meter shows the relative rental returns on the highest gross yield at 3.43% and 3.42%, respectively, followed residential property over the past three years. Yield is the by Ahinsa Khand at 2.45% percentage between the capital and annual rental values at a given point. If a buyer purchases a house for value X and receives Both these are next to NH-24 and provide easy access to Delhi and l an annual rental return of Y, then the ratio of Y to X classifies the Noida. Indirapuram is an established area with well-developed yield for the concerned property. For the purpose of calculation, social infrastructure and several options in various budgets maintenance and other costs have not been factored VOL5, ISSUE 2; JUL-SEP, FY 2015-16 43 propindex.magicbricks.com GHAZIABAD Capital Values – Locality Wise GHAZIABAD Average Listed Residential Apartment Prices Locality Capital Values Locality Capital Values (Rs/Sq feet) (Rs/Sq feet) Abhay Khand 5100 to 6380 Shakti khand 1 4630 to 5730 Ahinsa Khand 1 5680 to 6930 Shakti Khand 2 4060 to 4920 Ahinsa Khand 2 4810 to 5910 Shakti Khand 3 4220 to 5140 Anand Vihar 5550 to 7280 Shakti Khand 4 4460 to 5370 Bhopura 2890 to 3470 Shalimar Garden Extn 1 3630 to 4440 Crossings Republik 3330 to 4020 Shalimar Garden Extn 2 3890 to 4750 DLF Ankur Vihar 2640 to 3260 Shastri Nagar 2630 to 3410 Dundahera 3580 to 4020 Siddhartha Vihar 3210 to 3890 Garhi 3100 to 3710 Surya Nagar 6520 to 8220 Govindpuram 2330 to 3080 Tronica City 2600 to 3200 Gyan Khand 1 4110 to 4980 Vaibhav Khand 5060 to 6190 Gyan Khand 2 4210 to 5010 Vaishali Sector 1 4850 to 5980 Gyan Khand 3 4720 to 5810 Vaishali Sector 2 4390 to 5350 Indirapuram 4670 to 5950 Vaishali Sector 3 4920 to 6110 Judges Enclave 4660 to 5730 Vaishali Sector 4 5120 to 6460 Kaushambi 5310 to 6760 Vaishali Sector 5 4570 to 5710 Lal Kuan 2510 to 3210 Vaishali Sector 6 4240 to 5100 Loni 2740 to 3520 Vaishali Sector 9 4600 to 6110 Mohan Nagar 4450 to 5090 Vasundhara Sector 1 3720 to 4730 Neeti Khand 1 4230 to 5140 Vasundhara Sector 2B 3960 to 5190 Neeti Khand 2 4340 to 5200 Vasundhara Sector 3 3950 to 5020 Neeti khand 3 5240 to 6700 Vasundhara Sector 5 4750 to 5910 Nyay Khand 1 4080 to 5050 Vasundhara Sector 9 4830 to 5900 Pratap Vihar 3830 to 4960 Vasundhara Sector 10 4660 to 5730 Raj Nagar Extn 3020 to 3620 Vasundhara Sector 12 4710 to 5680 Rajendra Nagar 4030 to 5170 Vasundhara Sector 13 4780 to 5640 Ramprastha Greens 6030 to 7010 Vasundhara Sector 15 4350 to 5270 Sahibabad 4020 to 5180 Vasundhara Sector 17 5120 to 6330 Sain Vihar 3220 to 3960 propindex.magicbricks.com VOL5, ISSUE 2; JUL-SEP, FY 2015-16 CONTACT US PROPINDEX TEAM l Post your feedback to - l Content & Research: propindex @timesgroup.com E Jayashree Kurup, Dipti Tandon, Subodh Kumar, Rohit Vats, Bhawna Mongia, Devendra Lohmor, l Join our discussion forum at - openhouse.magicbricks.com Namrata Ekka, Preeti Sharma, Renu Arya, Pushpa Rawat, Surbhi Gupta, Namrata Hazarika, l For business enquiries - [email protected] Puneet Kukreja & Bikash Kumar l You may also share your opinion with #PropIndex on l Layout Design: our Twitter handle @magicbricks or connect with us on Harsha Khattar Facebook at www.facebook.com/magicbricksTOI DISCLAIMER Every effort has been made to make this Index as complete and as accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this book. It shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this book. The information/data in this book is subject to change from time to time due to market condition.