www.99acres.com

INSITE REPORT 2019 April-June

99acres ’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : KOLKATA 3

From CBO’s Desk

While the market showed some green shoots of recovery in the form of improved enquiries and sales volume this quarter, new project launches took a backseat owing to General Elections. The affordable Contents and mid-income housing segments strengthened amidst government initiatives and developers’ realignment of product-mix. The average weighted prices of residential apartments across the top eight From CBO’s Desk Maneesh Upadhyaya Chief Business Officer metros witnessed slight variations. Hyderabad and Bangalore, yet CBO’s perspective on current 03 again, emerged as the only two metros posting growth in property market 99acres.com ‘asks’, albeit by a marginal one percent, each, QoQ.

National Outlook After several quarters, the demand for under-construction properties 04 Snapshot of real estate ambience in Pune, Hyderabad and Ahmedabad grew by 3-5 percent, each. across top 8 metro cities Interestingly, 80 percent of this demand is for units priced within Rs 60 lakh. Supply of new and resale apartments also improved by Market Indicators 1-3 percent each in Bangalore, Chennai, Hyderabad and Ahmedabad. 05 Changes in capital rates and inventory The demand-supply equation in various budget categories still status QoQ; and rental values YoY remains disproportionate. Delhi NCR, Bangalore and Mumbai cumulatively report a 50 percent shortfall of houses in the Market Movers affordable and mid-housing segments. News that impacted Kolkata’s 06 realty market in Apr-Jun 2019 The industry now awaits inclusion of Input Tax Credit (ITC) in Goods and Services 99acres Outlook Tax (GST) bracket, further cuts in repo Methodology rate to improve home-ownership 07 99acres’ perspective on current market The Insite Report by 99acres.com captures appetite and reduction in unsold the quarterly capital trends and the annual inventory, which currently Kolkata rental analysis of residential apartments stands at around 8 lakh 08 Key highlights - Kolkata’s capital and in key real estate markets – Delhi NCR, Mumbai in top eight metros. rental market in Apr-Jun 2019 Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Annexures Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand 10 and supply of properties across varied budget segments and occupancy stages. While demand is a function of queries received, supply is based on property listings posted on 99acres.com in Apr-Jun 2019. 99acres India’s No.1 Property Portal INSITE : KOLKATA 5 MARKET INDICATORS

DELHI NCR

NATIONAL OUTLOOK

HOME BUYING SENTIMENT KOLKATA Reduced GST rates coupled with stabilised property prices across metros AHMEDABAD kept home buying sentiment buoyant in Apr-Jun 2019. Low-cost housing units ruled the roost and properties priced within Rs 50 lakh posted maximum enquiries and sales conversion. Demand for under-construction units improved as States undertook stringent actions under RERA. MUMBAI

PROPERTY PRICES PUNE Average weighted property prices remained under pressure despite improvement in sales volume. Barring Hyderabad and Bangalore, which HYDERABAD reported a marginal one percent uptick in property prices, each, all metros saw prices maintaining status quo, QoQ. The market remained marred by the uncertainty posed by the ongoing General Elections and piling housing stock.

RENTAL LANDSCAPE For yet another quarter, the rental market continued to benefit due to the BANGALORE CHENNAI Capital Values cautious buyer stance. With a four percent hike in average rentals, YoY, the Rental Values IT/ITeS-driven cities - Pune and Hyderabad, emerged as the top performers on the rental graph. Other cities averaged at a 2-3 percent uptick in rental Supply ‘asks’ in Apr-Jun 2019 vis-à-vis the same quarter last year. Increase by 2-4 percent Increase by 0-1 percent SUPPLY Status quo General Elections, liquidity crunch following the NBFC crisis and ambiguities Decrease by 0-1 percent pertaining to Input Tax Credit (ITC) under the revised GST regime kept new supply under stress. Developers’ focus on offloading existing stock led to a Decrease by 2-4 percent reduction in the total saleable stock across cities. The average time to offload residential inventory, as in Apr-Jun 2019, stands at around 30 months. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com 99acres India’s No.1 Property Portal INSITE : KOLKATA 7

99ACRES OUTLOOK Market Movers The threat of brewing political instability, NBFC crisis and the revised GST regime without Input Tax Credit (ITC) benefits put downward pressure on average property East-West Metro gets a green signal 2,500 acres of land to pave the way for prices in Kolkata. Notably, prices in about 60 percent of the tracked localities either The railway board gave the nod to commence vertical expansion of the city, benefiting areas remained unaltered or dipped by 1-2 percent. The remaining witnessed a moderate the commercial run of 5.5 km-long section such as Ahiritola, Burrabazaar, , hike of 1-4 percent in Apr-Jun 2019 versus the previous quarter. The rental market of the East-West Metro corridor from Gouribari, Kasba, Metiabruz, and Tangra. continued to remain upbeat with average ‘asks’ heading north by three percent, YoY. Sector 5 to Salt Lake Stadium, boding well Sale conversions remained restricted despite steady demand for 2 BHK and with both buyers and realtors. In addition, BMC to impose strict property 3 BHK housing units in , New Town and areas of South Kolkata. Timid achieved a major milestone by tax penalties home buying sentiment, increased regulatory environment and financial crisis made conducting the trial run of Phoolbagaan – the Municipal Corporation (BMC) the developers take a backseat. The quarter subsequently recorded an addition of first underground station - scheduled to be has initiated a collection drive to recover around 1,000 new units. Inventory overhang remained unchanged with over 40,000 operational by October 2019. pending property tax dues worth several housing units in the quarter. crores by September-end. The revenue is Civic body to organise demolition planned to be used for the development With East-West metro corridor inching closer to its completion, housing demand of various infrastructure projects across drive in the city in nearby localities such as Salt Lake, and is expected to the city. The tax evaders who fail to clear In a pre-emptive measure, the civic body has improve. Additionally, the reduced home loan and repo rates, along with the launch dues by the given deadline will attract decided to demolish over 100 dilapidated of Real Estate Investment Trusts (REITs) are anticipated to open fund-raising about 15 penalties. buildings with the potential of a near-future avenues for the developers to complete their existing projects and launch new ones. collapse. The authority has planned to provide proper dwellings for rehabilitation at The snail-paced implementation of WBHIRA proved to be a growth dampener yet the site. In another move, 700 illegal buildings again. With some small and mid-scale developers merging with reputed players in constructed without proper licenses and legal the market, the second quarter of 2019 might see some new project launches in the approvals are planned to be razed out. affordable and mid-housing segments.

State amends Thika Tenancy Act The amendment has permitted the slum Price movement in key micro-markets dwellers in Kolkata, and Asansol LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE to build houses of over 9.5 meters on the Thika land. The move would unlock over Rajarhat 3,600-4,600 -2% -1% 3,200-4,000 -1% 3% Baguihati 2,600-3,200 2% 0% 5,500-6,000 -1% 6% 3,000-3,400 -1% 2% 3,400-4,100 1% 5% Kasba 4,200-5,400 -2% -2% 2,400-3,200 0% -5% 2,000-2,500 -2% 4% 2,600-3,100 0% 2%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com in the current quarter 99acres India’s No.1 Property Portal INSITE : KOLKATA 9

KOLKATA Reasons including, but not limited to KEY HIGHLIGHTS revised GST implementation, snail- paced project registrations under While property prices remained under pressure, Kolkata drew nearly in the right budget bracket again, new launches, albeit minimal, offered SUPPLY OF WBHIRA and political upheavals kept 70 percent of its total residential enquiries from Rajarhat, New Town residential units for around Rs 50-80 lakh. This consequently widened the APARTMENTS Kolkata’s real estate market sluggish and areas of South Kolkata such as Tollygunge, Joka and Behala, demand-supply gap by about 20 percent, with availability outweighing need. in the quarter ending June 2019. In among others. However, steady housing demand did not translate UC RTM DEMAND UC RTM SUPPLY While homebuyers were seen apprehensive of entering the market in the absence of any improvement into sales. In turn, Rajarhat and New Town reported a decline in the anticipation of the GST rate cut in Jan-Mar 2019, the revision with the in the sales volume over the last average capital values by 1-2 percent, QoQ. exclusion of ITC benefits resulted in price corrections to the tune of1-4 quarter, developers refrained from About 75 percent of the total housing demand was noted for properties percent. Southern localities such as Bagha Jatin, and Rajpur were adding new inventory to the market. priced within Rs 50 lakh. An unmet supply of 25 percent resulted in among the limited ones recording a price increment of four percent, QoQ.

Average rentals, however, posted a 90% / 10% muted sales, yet again. As the demand for affordable and mid-income 89% / 11% hike of three percent, YoY. The residential rental graph recorded an uptick of three percent in Apr-Jun 88% / 12% segments continued to rise, the appetite for premium segment went 88% / 12% further downhill. The city has an oversupply of about 20 percent in 2019 vs Apr-Jun 2018. Baguihati in North Kolkata emerged as the frontrunner luxury and ultra-luxury categories, leaving prospective homebuyers recording nine percent hike in rental rates, YoY, on account of ambitious ‘asks’. spoilt for choices. Owing to improved connectivity and rise in co-living spaces in New Town and Salt Lake, the rental values of both the localities witnessed a surge of Backed by improved infrastructure and connectivity, localities of six percent, each, annually. Among all zones, the tenant community preferred North and South Kolkata such as EM Bypass, Dum Dum and the micro-markets of South Kolkata including , Bhawanipore, remained the preferred choices for launching new projects among the Bansdroni, Mukundapur, Patuli, New Garia, Santoshpur and Kalikapur. developer community. With developers failing at launching projects Consequently, the localities saw prices inching up by 7-8 percent, each, YoY. 72% 79% 73% 78%

Apr-Jun 2019 Jan-Mar 2019

* Graph depicts the availability of residential 7% apartments wrt other property types in the city 6% 6% along with the distribution of under-construction and ready stock of residential apartments in BUDGET-WISE SUPPLY OF PROPERTIES respective micromarkets 4% 4% 4% 3% 2% 1% 1%

0% DEMAND SUPPLY 52% 0% 0% 50%

-1% -1% -1% -2% 49% -26% -29% -26% 4% 2%

-3% 1% 6% 5% 15% 4% -4% 14% 13% 27% 26% 6% 6% 26%

-5% 5% 19% 17% 18% 20% 19% 19% 13% 14% 12% 23% 25% 25% 24% 23% 15% 23% 24% 4% 4% 4% 8% 7% 14% 14% 7% Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Capital Rental 2019 2019 2018 2019 2019 2018 2019 2019 2018 2019 2019 2018 2019 2019 2018 Within Rs 25 Lakh Rs 25-40 Lakh Rs 40-60 Lakh Rs 60 Lakh to Rs 1 Crore Rs 1 Crore and Above Mukundapur Behala Dum I Action Area Garia Tollygunge Kestopur Rajarhat

* %change represents quarterly capital movement and yearly rental movement * Graph depicts the fluctuation in supply wrt demand for residential properties in various budget categories 99acres India’s No.1 Property Portal INSITE : KOLKATA 11 99acres Annexures India’s No.1 Property Portal FIND BEST OPTIONS TO CAPITAL VALUES RENTAL VALUES FIND BEST OPTIONS TO

Locality Apr-Jun 2019 Locality Apr-Jun 2019 Locality Apr-Jun 2019 BUY, SELL, RENT PROPERTYbuy, sell, rent property

Action Area I 4800 5900 Action Area I 17 Action Area II 4650 Lake Town 4800 Action Area III 14 Action Area III 4500 Madhyamgram 2900 Alipore 33 2450 Madurdaha 4375 Baguihati 12 Alipore 12900 Mahamayatala 3800 Ballygunge 28 Bagha Jatin 4075 3525 Bansdroni 14 Baguihati 3150 Mukundapur 4300 Behala 13 Price trends and Ballygunge 9425 4400 Bhawanipore 28 Mobile App property advice Bansdroni 3950 Narayanpur 3400 Chinar Park 13 on Android platform Bara Nagar 3400 3850 Dhakuria 21 and iOS Barasat 2450 Nayabad 3250 Dum Dum 12 Barrackpore 2750 Netaji Nagar 3725 Garia 14 Genuine Behala 3950 7000 Gariahat 28 Over 9 lakh listings with 3900 New Garia 3475 18 property photographs 5000 Pailan 2500 Jadavpur 17 listings Bhawanipore 9600 6800 21 3125 Patuli 4950 Joka 9 Brahmapur 3150 4450 13 Chinar Park 4300 Purbalok 4550 Kalikapur 16 3750 Rajarhat 4225 Kasba 18 More than Dum Dum 3225 Rajpur 2800 Kestopur 12 1.6 lakh Dunlop 3925 Sakher Bazar 3825 Lake Gardens 19 projects 4600 Salt Lake 5850 Lake Town 16 Garia 3900 Santoshpur 4450 Madhyamgram 10 Haltu 4050 Sodepur 3150 Maheshtala 10 Jadavpur 4950 Sonarpur 3000 Mukundapur 15 Jodhpur Park 7800 Tagore Park 4900 Naktala 15 Joka 3400 4000 Narendrapur 13 Kaikhali 4175 3050 New Alipore 21 Kalikapur 4750 Tollygunge 5650 New Garia 15 CONTACT US 3850 6800 Park Circus 22 0120 4619723 7475 6450 Rajarhat 13 Monday - Friday Kasba 5367 3000 Salt Lake 19 9:30 AM to 6:30 PM IST Kestopur 3350 Santoshpur 16 Email: [email protected] Khardah 2850 Tollygunge 18

*All prices are per sq ft rates *Capital change depicts quarterly alterations in average ‘asks’ *Rental change depicts yearly alterations in average ‘asks’ CONTACT US 0120 4879400 Monday - Friday 9:30 AM to 6:30 PM IST Email: [email protected]