FOREWORD

This has been one of the more interesting quarters in the residential real estate market. Data indicates that markets are looking for a sense of direction. Weak sentiment because of economic factors as well as the upcoming elections has dampened investor enthusiasm. However, this is the first time that the end user has shed inhibitions and got into the driver’s seat in the residential property market. Read this quarter’s PropIndex analysis along with the Housing Sentiment Index (HSI). The HSI has been jointly released by Magicbricks and Indian Institute of Management, Bangalore. The first of its kind in the market, the HSI tracks property buyer sentiment across the country by way of detailed questionnaires. It clearly indicates that while the consumer is willing to wait in anticipation of better prices, he is also quite willing to search for the best deals over the next six months.

The number of enquiries indicate strong underlying demand. However, with investors shying away due to a slow market, the end user is using this window of six to eight months to explore the markets at length, search for a property of their choice and then negotiate to get a good deal. Both developers and landlords seem more willing to negotiate in an effort to keep up the sales velocity. In a market driven by end users, consumer preferences come into sharper focus. Apartments emerged as the winner with all cities showing robust demand. Smaller units of 1, 2 and 3BHK were preferred over premium, large apartments. However, demand for premium apartments was driven by a small group of buyers who showed that sentiments had nothing to do with this volume of demand. This being a lucrative category, developers seemed to prefer to build more in this category, thereby creating abundant supply.

The industry would benefit by using statistics to understand consumer sentiment, and be able to navigate basis the direction that markets are likely to take. The volume of stock in every market, if positioned correctly, can be used to bring back the end user. Unlike 2010, when developers had little to woo the anxious consumer with, this time round, they have plenty of stock and a negotiating power to turn the markets around. The question is, can they take leadership and make Real Estate the sector to kickstart a sagging economy?

We hope you benefit from this edition of PropIndex. A complimentary copy of HSI is also included with this report. We would look forward to your feedback – please write in to us at [email protected]. Happy Diwali and best wishes for the festival season.

Sudhir Pai Business Head, Magicbricks.com [email protected] 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 . 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. 500,000 active properties well as the budget-wise posted by more than While listing and its preferences. values/supply provide a 1,50,000 active users in The PropIndex is the level of understanding 300 cities and 10,000 result of meticulous of the market, there are localities. Our users research at the locality meticulous data checks include owners, agents level and through to prevent aberrations 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 multistorey 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 12 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 Jul-Sep 2013 quarter from different perspectives – from that of capital appreciation, from a rental/yield realisation perspective and from a supply standpoint. Also, Demand Analysis section, 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. Demand Analysis – This analysis of consumer demand is based on searches and requirements that users have performed on Magicbricks.com. The top localities by demand gives an insight into consumer peferences. The demand data has been used to arrive at various aspects of consumer requirements including Budget-wise analysis, Property type analysis and BHK configuration analysis. This section also provides a comparison between demand and supply in the Apr-Jun 2013 and Jul-Sep 2013 quarters.

7. Realty News – Property market performance is also dependent on drivers outside the purview of buying and selling. There are broadly four key drivers that determine the prospects of real estate – infrastructure such as water and power, transport links creating new growth corridors, policy such as rental laws, property tax, etc and return on investment. PropIndex also focuses on news bytes that impact future prospects of real estate in the city. VOL 3, ISSUE 2; JUL-SEP, FY 2013-14 propindex.magicbricks.com

NATIONAL PROPERTY INDEX (NPI) JUL-SEP 2013

n Property buyers remained cautious due to sluggish economic growth and looming elections n About 40 per cent demand was for multi-storey apartments across cities n Majority of buyers preferred property worth Rs 30-50 lakh. n About 30 per cent supply was of 800-1200 sq ft apartments followed by Hyderabad at JUL-SEP 2013 an analysis of consumer housing 5 per cent. Mumbai and Delhi sentiments based on survey National Property Index is a registered the maximum drop of across eight cities. weighted average of supply and 4 and 3 per cent, respectively. values across 12 cities in India. In While PropIndex analyses real In spite of slow property the latest quarter (Jul-Sep 2013) estate market performance of the transaction rate, market the NPI witnessed a rise of previous quarter, HSI would offer continues to witness adequate 4 per cent. Of the 12 cities in the insights into potential future enquiries from property buyers, apartment index, majority of the market performance. cites have seen a rise, on the back indicating buyers are scouting for of steadily increasing supply good deals in the market. At IN THIS REPORT: across cities. present, buyers are cautious due to the sluggish economic growth National Property Index...... 1 Bangalore was the biggest gainer and the looming political elections with a rise of 17 per cent. It was in the country. Delhi...... 4 followed by Kolkata with Gurgaon...... 11 9 per cent, Mumbai, Delhi, Pune Despite all uncertainties and and Vadodara witnessed weak sentiments in the market, Noida & Ghaziabad...... 18 property worth between Rs 30-50 4 per cent rise each, Ghaziabad, Mumbai...... 29 and Hyderabad with lakh continues to top buyer 3 per cent and Gurgaon with preference nationally. Cities Pune...... 36 which buck the trend are Kolkata, 2 per cent. Noida registered a drop Ahmedabad...... 43 of 1 per cent. Gurgaon and Mumbai. In Gurgaon and Mumbai, properties Kolkata...... ,...... 48 On the other hand, Listed Price worth Rs 1-2 crore witnessed Monitor, which largely shows the higher demand, except in Thane Chennai...... 55 capital appreciation/drop within and Navi Mumbai. In Kolkata Hyderabad...... 62 a locality ranges between minus property worth upto 4 per cent to plus 7 per cent. Rs 20 lakh tops demand. Bangalore...... 69 Average property prices remained Vadodara...... 76 upbeat in Bangalore with Read this issue along with the maximum rise of 7 per cent, Housing Sentiment Index which is Annexures...... 81 propindex.magicbricks.com 02 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

between Rs 60 lakh and Rs 1 crore. The Ghaziabad residential market registered a rise of 3 per cent in the City Index as well as in the Listed Price Monitor. The highest demand and supply was noted for properties priced between Rs 40-70 lakh, particularly in localities such as Indirapuram, Vaishali and Crossings Republik. Availability of ready-to-move-in options is mainly fuelling demand in these areas. The Mumbai City Index went up by 4 per cent during the period Jul-Sep 2013 as compared to a rise of 1 per cent in the previous quarter. This is mainly on account NATIONAL PROPERTY INDEX market in the last six months. On of increase of supply in the city. the other hand, Listed Price The Listed Price Monitor dropped l Multi-storey apartments Monitor dropped 3 per cent on the continued to witness active back of marginal drop in average Preferred Localities - Sale demand. Close to 40 per cent capital values in 74 per cent demand was for multi-storey localities in the city. However, apartments across India with localities close to Noida such as IP Locality Rank maximum in Mumbai at Extn, Vasundhara, Mayur Vihar Q2 Q1 94 per cent. and Patparganj in East Delhi and Mumbai 1 1 select pockets in Dwarka, owing Bangalore 2 2 l RBI’s recent measures to to connectivity to Gurgaon, have unwind liquidity tightening Pune 3 3 seen consistent rise in values in measures have been well the past few quarters. New Delhi 4 4 received by the market. Kolkata 5 6 However, the effect on home The Gurgaon City Index rose by Chennai 6 7 loan rates has been negligible. 2 per cent in the Jul-Sep 2013 quarter as compared to a rise of Gurgaon 7 8 l The government’s 4 per cent in the previous quarter, Hyderabad 8 5 consideration to ease Foreign indicating a slow movement in the Noida 9 9 Direct Investment (FDI) norms property market. The Listed Price in the real estate sector may Ghaziabad 10 10 Monitor too, remained stable help in attracting cash flows, Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 while it rose by 2 per cent in the easing out the present Apr-Jun 2013 quarter. It has been beleaguered scenario. Preferred Localities - Rent observed that apartment prices in Ahmedabad City Index rose by select pockets remained up, Locality Rank 3 per cent in the Jul-Sep 2013 despite a slow transaction rate. Q2 Q1 quarter, as compared to a rise of After witnessing an increase of Mumbai 1 1 4 per cent in the previous quarter. 3 per cent in Apr-Jun 2013, the Bangalore 2 2 Residential developments Noida city index dropped by New Delhi 3 4 continue to see regular demand in 1 per cent, while the Price localities along the two major Pune 4 3 Monitor remained unchanged. growth corridors - SG Highway Chennai 5 5 Almost equal number of localities and SP Ring Road. registered rise and drop in Gurgaon 6 7 Delhi City Index rose by 4 per average capital values. This kept Hyderabad 7 6 cent during the Jul-Sep 2013 the price monitor unchanged. In Kolkata 8 8 quarter as compared to a drop of the present quarter, demand and Noida 9 9 supply in Noida was inclined 3 per cent in the previous quarter Ahmedabad 10 10 indicating a slow but stable towards properties priced Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 VOL3, ISSUE 2; JUL-SEP, FY 2013-14 03 propindex.magicbricks.com

National - Consumer Budget Preference

30% 23% 25%

20% 16% 15% 15% 14% 13% 12% 10% 7% 5%

0% Upto Rs 20 Lakh Rs 20-30 Lakh Rs 30-50 Lakh Rs 50-70 Lakh Rs 70-100 Lakh Rs 1-2 Crore Rs 2 Crore & Above by 4 per cent. Drop in average the neighbouring areas kept up the TOP YIELD GROSSERS property prices in premium areas property prices in both outright such as Worli, Prabhadevi, sale and lease in South Chennai. Gross yield is a ratio of average annual Santacruz West and Khar West led No sign of price correction was rental value to the average capital value to a drop in the listed price witnessed in the residential of the property. Given below are the top yield-grossing localities in each city. monitor. market in the last three months, despite the slow transaction rate. Locality Gross yield The Pune residential market continues to remain upbeat The Hyderabad City Index rose by Bangalore, Marathahalli 4.94% quarter over quarter. The City 3 per cent in Jul-Sep 2013. Rise in Kolkata, Rajarhat 4.61% Index went up by 4 per cent and property values in 77 per cent of Hyderabad, Madinaguda 4.36% Price Monitor by localities pushed the Listed Price Chennai, Urapakkam 4.21% 2 per cent during the period Monitor up. Owing to the Ahmedabad, Vejalpur 3.91% Jul-Sep 2013. Residential Telengana issue, property prices development along the IT were 30-40 per cent cheaper as Mumbai, Parel 3.81% corridors in the Eastern and compared to any other metro Noida, Sector-92 3.74% Western parts of Pune continued despite the well-supported Pune, Viman Nagar 3.09% to be preferred destinations for infrastructure development. Ghaziabad, Indirapuram 2.90% both outright sale as well as lease. The Bangalore City Index rose by Gurgaon, MG Road 2.52% The Kolkata City Index rose by 17 per cent in the Jul-Sep 2013 Delhi, Malviya Nagar 2.36% 9 per cent during the Jul-Sep 2013 quarter, as compared to the quarter. Increase in capital values previous quarter, which reported a CAPITAL GAINS in more than 64 per cent localities 6 per cent drop. With a major combined with a growth in supply number of localities reporting an The table given below indicates in almost 50 per cent of the increase in property values, the maximum increase in capital values in localities pushed the city index up overall Listed Price Monitor each city. by 9 per cent. Drop in capital registered a 7 per cent rise in the Locality % Change values in premium areas such as quarter. Of the total demand, Jodhpur Park and Southern 25 per cent was for properties in Bangalore, Hormavu 10.08% Avenue arrested the growth of the the Rs 40-60 lakh range. A positive Kolkata, Behala 8.96% Listed Price Monitor. sentiment in the IT sector Pune, Hadapsar 8.89% translated into rising property Hyderabad, Banjara Hills 8.86% The Chennai City Index rose by values in Bangalore. 3 per cent during the Jul-Sep 2013 Ahmedabad, 7.37% quarter indicating a positive The City Index for Vadodara rose Gurgaon, Sector-92 7.10% market. Almost 60 per cent of the by 4 per cent during the Jul- Sep Ghaziabad, Lal Kuan 6.93% total localities tracked recorded a 2013 quarter primarily on the back Chennai, Valasaravakkam 6.81% rise in average capital values, to of healthy supply in the city. register an increase of 3 per cent However, property prices have Mumbai, Borivali West 6.53% in the Listed Price Monitor. remained stable in the last six Delhi, Indraprastha Extn 5.54% Presence of IT/ITeS companies in months with small fluctuations. Noida, Sector-100 5.22% AHMEDABAD propindex.magicbricks.com 43 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

PROPINDEX - AHMEDABAD Editorial Planned development characterizes the real estate trends in the city in the current quarter. There are three main drivers to real estate in the city – affordability, transport connectivity and planned future industrial corridors. Planned enhancement of FSI along Bus Rapid Transit (BRT) corridors have pushed demand and therefore, prices along the city’s award winning transit corridor. This is one city where the BRT has acheived its true potential and is driving real estate growth along this corridor. As a result, planners too have enhanced FSI and density along the The Ahmedabad City Index rose by 3 per cent in the Jul-Sep 2013 corridor, very similar to what most quarter, compared to a 4 per cent rise in the previous quarter, cities are doing along metro corridors. indicating a steady growth. The NPI rose by 4 per cent and the The SG Highway has provided a long stretch of growth along a newly city’s Listed Price Monitor rose by 1 per cent in this quarter. emerging transport corridor and has become a significant segment of the city’s residential options. The Delhi Mumbai Industrial Corridor (DMIC) too will have its effect in the future by Key Takeaways providing economic nodes which act as drivers of residential real estate l The number of transactions l High demand pushed developers growth. declined in Ahmedabad in the such as Savvy Infrastructures, past 3-6 months. However, there Tithi Developers, Godrej Planned affordable housing options for has been a rise in the number of Properties and Sun Builders to economically weaker sections are also coming up in pockets in South enquiries, indicating keen launch projects on SG Highway Ahmedabad. Masterplanning of areas end-user interest. and Satellite. such as Bopal into the jurisdiction of the Ahmedabad Urban Development l The recent General l Most of the Economically Authority has given a boost to prices Development Control Weaker Section (EWS) housing and demand. Regulations (GDCR) called for in Ahmedabad was concentrated allowing highest FSI on plots in the South in localities such However, rental markets indicated that within a distance of 200 m from as Narol and . About congestion planning is required in the city. Areas along commercial corridors the Bus Rapid Transit System 2-2.5 lakh affordable units are are doing well in terms of transactions (BRTS). Therefore, highest expected to come up in the and rising values. But rental trends demand and price appreciation coming year. that indicate liveability, shows that was recorded in these areas. lessees prefer to move away from the l Areas along the Delhi-Mumbai main SG Road into localities such as l Navrangpura, New CG Road and Industrial Corridor (DMIC) such and Chandkheda. Ghatlodia recorded the highest as Sanand, Bopal and Dholera price rise of 5-10 per cent in the are expected to reap healthy With both rental and capital values rising in the city, yield too inched up past year. While Navrangpura returns in the long run as the marginally. Rental demand pushed up and New CG Road were most proposed Ahmedabad- yield along SG Highway and the preferred for their connectivity Gandhinagar Metro is also localities around it. Rs 25-40 lakh via the BRTS, Ghatlodia was planned here. seems to be the preferred budget preferred for its affordability range for property purchase. and proximity to SG Highway. l Maximum demand was for properties worth Rs 20-40 lakh, The city has taken to multi-storey living in a big way and this category l In two years, Prahlad Nagar, while supply fell short by 13 per remained most in demand. As a result Bodakdev and cent. Supply of premium homes demand exceeded supply by recorded the highest rise of worth Rs 1 crore and above 15 per cent in the 2BHK category. 18-22 per cent in property values. exceeded demand by 17 per cent. Adjacent to the SG Highway, Industry pundits such as Narendra J Patel, CMD of Soham group expect these localities recorded the l Multi-storey apartments of 1100- 1200 sq ft were the most sought affordable properties to come up highest demand for housing in around SG Highway near Gota. the city. after in the city. VOL3, ISSUE 2; JUL-SEP, FY 2013-14 44 propindex.magicbricks.com AHMEDABAD

LISTED PRICE MONITOR RENT MONITOR

1% l Values rose in almost 64 per cent localities in the l Over 44 per cent localities witnessed rising values in current quarter. a range of 2-9 per cent. l Chandkheda and New CG Road recorded the highest l Localities such as South Bopal, Motera, rise in property values in the range of 5-7 per cent. Chandkheda, Ramdev Nagar, Narangpura and recorded a rise of 8-9 per cent, the l Infrastructure and affordable values pushed demand highest in this quarter. in Chandkheda while increased commercial activities grew the market on New CG Road. l Buyers increasingly opted to stay in localities such as Motera and Chandkheda rather than the l Bodakdev, Vejalpur, Motera, Vaishnu Devi and congested SG Highway. Those working on recorded stable values. SG Highway and looking to live closeby opted for South Bopal and Ramdev Nagar. l Ghatlodia, Navrangpura, Gota and Prahlad Nagar witnessed a rise in property values by 3-4 per cent. l Connectivity through BRTS kept the rental values Ghatlodia, Prahlad Nagar and Gota posted healthy high in Navrangpura and New CG Road. demand due to their proximity to SG Highway. YIELD METER

Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Satellite 13 4,975 3.02% Prahlad Nagar 13 5,025 3.16% New CG Road 6 2,775 2.49% Vastrapur 13 4,575 3.28% Bodakdev 12 5,175 2.84% Vejalpur 11 3,225 3.91% Gurukul 12 4,300 3.35% Bopal 8 3,150 3.14% South Bopal 9 3,250 3.23% Motera 6 2,850 2.53%

l The Magicbricks.com yield meter ranged from SG Highway, Vejalpur posted healthy rental 2.49-3.91 per cent in the Jul-Sep 2013 quarter, demand due to seamless connectivity via road and compared to 2.20-3.75 per cent in the last quarter. rail network.

l Owing to high rental demand, SG Highway l Other localities with high gross yields in the recorded the highest gross yield. quarter were Vastrapur, South Bopal, Prahlad Nagar and Bopal. All these localities were close to l Situated close to areas such as Prahlad Nagar and SG Highway, the commercial centre of the city. AHMEDABAD propindex.magicbricks.com 45 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

PREFERRED LOCALITIES

SALE RENT

Locality Capital Rank Locality Rental Rank Values Q2 Q1 Values Q2 Q1 Bopal 2900 to 3600 1 1 Satellite 11500 to 14500 1 1 Satellite 4550 to 5700 2 2 Bopal 7500 to 9500 2 2 Prahlad Nagar 4500 to 5950 3 3 Prahlad Nagar 12000 to 15500 3 3 South Bopal 3050 to 3600 4 6 Bodakdev 11000 to 14500 4 5 Chandkheda 2400 to 2850 5 7 Vastrapur 11500 to 14500 5 4 Bodakdev 4750 to 5950 6 9 Navrangpura 12000 to 15000 6 9 Gota 2700 to 3050 7 - Vejalpur 9500 to 12000 7 7 Thaltej 4300 to 5350 8 10 Thaltej 10000 to 12500 8 6 SG Highway 3200 to 4450 9 5 10500 to 13500 9 8 Vastrapur 4300 to 5050 10 4 Gurukul 11000 to 13500 10 10 Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013 l Bopal, Satellite and Prahlad Nagar continued to be l The top ten preferred rental localities remained the most preferred localities in the past six months. largely unchanged in the past six months. l Ahmedabad Urban Development Authority (AUDA) l Satellite, Bopal and Prahlad Nagar remained the apartments and connectivity to the city via SP Ring most preferred rental locations. While Satellite and Road and the BRTS worked in Bopal’s favour. Prahlad Nagar were sought by those who wanted to stay closer to the city, Bopal was sought by those l Satellite and Prahlad Nagar were the most popular with a limited budget. amongst non-Gujarati homebuyers and people working along the SG Highway. l Having a perfect mix of commercial and residential units, Bodakdev gained among lessees. l South Bopal climbed two notches in the list of Neighbouring Vastrapur, with slightly higher preferred localities because of proximity to rental values, was less preferred in this quarter. corporate offices and availability of properties at 30-40 per cent lower values than neighboring areas l Navrangpura rose three positions due to availability such as Satellite, Vastrapur and Bodakdev. of residential-cum-commercial buildings and presence of several corporate offices. l Close to Ahmedabad and Gandhinagar, Chandkheda was preferred for its connectivity via BRTS. This l Vejalpur was mostly preferred for small 1 or 2BHK demand may grow once the International homes at 20-30 per cent lower values than Satellite or Finance Tech-City (GIFT) is ready in Gandhinagar. Drive-in Road. l Localities on or close to SG Highway including Gota, l Thaltej, Paldi and Gurukul too posted healthy Vastrapur, Thaltej, Bodakdev remained in demand. preference for rental properties.

l In Ahmedabad, real estate development is mainly concentrated in the western part of the city.

l SG Highway and Sardar Patel Road were the two important growth corridors witnessing maximum development.

l North Ahmedabad was the second active real estate market. However, it accounted for a very small market share of the total residential development in the city. Above 40% 30-40% 10-20% 5-10% Less than 5% VOL3, ISSUE 2; JUL-SEP, FY 2013-14 46 propindex.magicbricks.com AHMEDABAD

EXPERT SPEAK Q&A Developer The current weak momentum for investment is temporary. Future yields for Ahmedabad and Gandhinagar are going to be very high. The upcoming Gujarat International Finance Tech-City (GIFT) will boost the Ahmedabad real Vijay Kumar R Jaju estate market. Realistic property rates bode well Chairman of Shreem Group of Companies for investors and developers.

Broker Narendra J Patel Investment in commercial property, especially CMD- Soham Group, CREDAI Member ground floor shops and showrooms, will give Has there been any impact of increase in repo-rate on sales? good returns in the next 2-3 years. The new General Development Control Regulations The market has been steady in Ahmedabad for the past six months. (GDCR) will make make development of With increased repo rates, the buying Prakash M Notani commercial spaces on small plots unviable, Chief Executive capacity has gone down. Sales Dhyaanarealty.com leading to a demand-supply gap. dropped in the last few months due to delayed decisions by consumers. We expect increased sales after a month Consultant from Diwali when the buyers get back. The increasing level of commercial activity will At what stage of the project is the ultimately lead to growth in the city’s real estate sales maximum? market. Today, property prices are at realistic Generally, maximum sales happen levels . The new regulatory regime (Real Estate during the launch of a project. While it Bill, Land Acquisition Bill), along with changes in is beneficial for the investors to seek Neeraj Sharma the political scenario will definitely move things more returns, it helps end-users get a partner Walker, Chandiok & Co. in the sector as well. larger pay-back time and thus, arrange their funding accordingly. What budget and configuration are R E A L T Y N E W S homebuyers looking for? Why? With developing infrastructure, Ahmedabad real estate market is witnessing a Ahmedabad mostly has middle- push in terms of demand from end-users and investors. One of the leading Tier income first time homebuyers who 2 cities, this will see around 10,000 housing units in the affordable segment in the mostly look for properties within coming few years. Rs 25-55 lakh. Units of 2 and 3BHK Affordable housing gets green signal in Ahmedabad with size ranging between 1000- 1500 sq ft are the most sought after. The plan for 10,000 EWS and lower income group (LIG) apartments in the city was given the final go ahead as the Ahmedabad Municipal Corporation (AMC) finalized Are there any new areas of growth 35 locations. The AMC is planning seven and nine storied apartments in certain pockets coming up in Ahmedabad? of the city. Giving a break-up of the housing units, municipal commissioner Guruprasad Mohapatra said, “There would be 7,000 EWS and 3,000 LIG apartments in The city has three growth corridors the city.” The EWS housing will consist of housing units that are between 260 sq ft to currently. Motera to Chandkheda to 322 sq ft. The LIG housing units will range from 430 sq ft to 538 sq ft. Koteshwar are expected to be n The Times of India, Ahmedabad connected by the BRTS and the metro. Areas adjoining Gandhi Nagar such as A house for Rs 15 lakh in Ahmedabad Sargasan and Kudasan would be The significant demand for small dwelling units is encouraging developers in Vejalpur connected by the Ahmedabad- to look at compact housing and the once popular 1BHK. Magicbricks turns the spotlight Gandhinagar metro and would also on this locality and finds out why it should be part of your home-search list. Currently, the capital value of apartments falls within the bracket of Rs 15-25 lakh. As for rental benefit from the up-coming GIFT values, the prevailing rates vary from Rs 7,000-8,000 per month. city.The area around SG Highway near n Magicbricks.com Bureau Gota has large land parcels and will To read full story and more news go to www.content.magicbricks.com have affordable properties. AHMEDABAD propindex.magicbricks.com 47 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

DEMAND - SUPPLY ANALYSIS Buyer demand analysis includes city and zone level analysis of three parameters - Budget, Configuration and Property Types. Each of these have been analysed from the supply and demand perspective. These give insight into a city’s real estate profile in the quarter.

City level graphs represent demand and supply in different Budget-wise Analysis budgets in the city in two quarters. Zonal demand and supply l The budget range of Rs 20-40 lakh graphs decode specific requirements, listings and continued to be the most preferred availability according to types of property and BHK in the last six months recording a configuration. stable demand at 34 per cent during this period. Budget wise Analysis - City Level l The Rs 40-70 lakh category was the DEMAND SUPPLY most supplied budget range with (Apr-Jun 2013) (Apr-Jun 2013) second highest demand in the city. 40 (Jul-Sep 2013) 40 (Jul-Sep 2013) 34 34 ) ) l Other budget ranges of up to 30 30 29 % % 28 ( 30 ( 30 27 27 e e Rs 20 lakh, Rs 70 lakh to Rs 1 crore g g a a t t n n 21 21 and Rs 1 crore and above were e e c c r 20 r 20 e e almost equally preferred. There p p

14 14 15 n 13 n i 12 12 i

10 11 10 s s was an over-supply of properties e e r 10 r 10 8 u u g g valued at Rs 1 crore and above. i i F F 0 0 Property Type Analysis <20 20-40 40-70 70-100 100 & <20 20-40 40-70 70-100 100 & above above l With demand for multi-storey Figures in Rs lakh Figures in Rs lakh apartments going up marginally, these units continued to be the most preferred property type in Property wise Analysis - City Level the city. DEMAND SUPPLY l Independent houses recorded a 80 80 healthy demand, though buyer 70 72 (Apr-Jun 2013) (Apr-Jun 2013) (Jul-Sep 2013) 68 68 (Jul-Sep 2013) interest dropped slightly in this ) ) % % ( ( e e 60 60 quarter. Supply adequately met g g a a t t n n demand. e e c c r r e e p p 40 40

l Single floor apartments, n n i i

s s e e r r residential plots and villas were u u g g i i F F 20 17 14 20 the least demanded and supplied in 12 12 8 10 9 the city. 7 5 5 6 6 22 3 4 0 0 Multistorey Single Residential Residential Villa Multistorey Single Residential Residential Villa apartment floor house plot apartment floor house plot BHK Configuration Analysis

l 2BHK units were the most preferred category with nearly BHK Configuration - City Level 50 per cent demand. However, its DEMAND SUPPLY supply fell short by 15 per cent.

60 60 l The second most preferred were (Apr-Jun 2013) (Apr-Jun 2013) 49 49 (Jul-Sep 2013) (Jul-Sep 2013) 3BHK units with supply exceeding ) 50 ) 50 % % ( ( demand by 9 per cent. e e 40 41 g g a a t 40 t 40 n n 35 e 33 32 e 34 c c l While supply of 1BHK units fell r r e e p p 30 30 short by 7 per cent, supply of n n i i

s s 20

e e 19

r r 4BHK and larger homes exceeded

u 20 u 20 g g i i

F 12 12 F demand by 13 per cent. Maximum 10 7 10 6 6 5 supply of these units was recorded in Prahlad Nagar, Satellite and 0 0 1 BHK 2BHK 3 BHK 4BHK & 1 BHK 2BHK 3 BHK 4BHK & Bodakdev. above above ANNExUrES AHMEDABAD propindex.magicbricks.com 87 VOL3, ISSUE 2; JUL-SEP, FY 2013-14

CAPITAL VALUES – LOCALITY WISE AHMEDABAD Average Listed Residential Apartment Prices

Locality Capital Values Locality Capital Values (Rs/Sq feet) (Rs/Sq feet)

Ambavadi 4900 to 6050 Paldi 4450 to 5350 Bodakdev 4750 to 5950 Prahlad Nagar 4500 to 5950 Bopal 2900 to 3600 Prahlad Nagar Extn 3450 to 3850 CG Road 5150 to 6400 Ramdev Nagar 4600 to 5650 Chandkheda 2400 to 2850 SP Ring Road 3050 to 3600 Chandlodia 2700 to 3300 Sardar Patel Ring Road 2750 to 3250 Ghatlodia 3250 to 4050 Satellite 4550 to 5700 Gota 2700 to 3050 Science City 3800 to 4500 Makarba Road 3600 to 4400 SG Highway 3200 to 4450 Maninagar 3550 to 4450 Shilaj 3450 to 4700 Motera 2650 to 3200 South Bopal 3050 to 3600 4250 to 5400 Thaltej 4300 to 5350 Naroda 1800 to 2250 Vaishnu Devi 2800 to 3250 Navrangpura 4900 to 6150 Vejalpur 3000 to 3650 New CG Road 2600 to 3050

propindex.magicbricks.com VOL3, ISSUE 2; JUL-SEP, FY 2013-14

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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.