www.99acres.com INSITE REPORT Mumbai 2018 April - June 99acres India’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : MUMBAI 3 CBO’s Desk The positive impact of groundbreaking policy reforms - Real Estate (Regulation and Development) Act and Goods and Services Tax (GST) – is seeming to bear some fruit in FY 2018- Contents 2019. Marked by a gradual reduction in unsold inventory, a rise in enquiries in affordable housing segment and the return of new launches, the beginning of the fiscal year is hinting From CBO’s Desk Maneesh Upadhyaya Chief Business Officer towards a slow but steady revival. 03 CBO’s perspective on current market sentiment 99acres.com The quarter recorded a quantum jump of almost 50 per cent in new residential launches to reach 50,100 units. Affordable National Outlook housing led the supply graph, up by about 100 per cent, QoQ, in 04 Snapshot of real estate ambience Pune, Hyderabad, Delhi NCR, Chennai, Mumbai Metropolitan across top 8 metro cities Region, Bangalore and Kolkata. Inventory levels, on the other Market Indicators hand, dropped by 10-30 per cent, YoY, across metros. RERA- 05 Changes in capital rates and inventory approved projects commanded a significant share of the status QoQ; and rental values YoY residential demand, evident from a healthy upswing Market Movers in the timeshare on RERA-registered projects on 06 News that impacted Mumbai's 99acres.com. Realty stakeholders are gung-ho realty market in Apr-Jun 2018 about the upcoming festive quarter, which might see a resurgence in end-user 99acres Outlook demand and sales volume. 07 99acres’ perspective on current market sentiment Methodology Mumbai The Insite Report by 99acres.com captures Key highlights - Mumbai's Capital and 08 the quarterly capital trends and the annual rental market in Apr-Jun 2018 rental analysis of residential apartments Navi Mumbai in key real estate markets – Delhi NCR, Mumbai 10 Key highlights - Navi Mumbai's capital Metropolitan Region (MMR), Bangalore, and rental market in Apr-Jun 2018 Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing Thane and Beyond sentiment, the report delves deep into demand 12 Key highlights - Thane's capital and and supply of properties across varied budget rental market in Apr-Jun 2018 segments and occupancy stages. While demand is a function of queries received, Annexures 14 supply is based on property listings posted on 99acres.com in Apr-Jun 2018. 99acres India’s No.1 Property Portal INSITE : MUMBAI 5 MARKET INDICATORS Capital Values Rental Values Supply Bangalore ˄ ˄ ˅ Delhi NCR ˄ Mumbai ˄ ˄ ˅ Chennai ˄ ˅ Pune ˄ ˅ Hyderabad ˄ ˄ ˅ Kolkata ˄ Ahmedabad ˄ ˄ ˄ * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com NATIONAL OUTLOOK HOME BUYING SENTIMENT IN FOCUS The realty landscape witnessed a fleeting calm even as enquiries and sales recorded a slight uptick in most metro cities this quarter. While the RERA ANNIVERSARY non-formation of a RERA-body marred buyer sentiment in Kolkata and Hyderabad, the approaching ‘Aadi’ period slackened growth in Bangalore and May 1, 2018 marked the first anniversary of the Real Estate (Regulation and Development) Act, 2016 Chennai. A revival in property sales is expected in the festive quarter. [RERA]. The implementation progress varied from State to State depending on timely compliance with Central RERA rules. Kerala, West Bengal and the six north-eastern States are yet to implement the Act. Others including Karnataka, the NCT of Delhi and Tamil Nadu made snail-paced progress, tarnishing PROPERTY PRICES consumer sentiment. Price movement remained marginal across cities, except Hyderabad, which saw notable growth due to infrastructural overhaul and robust office-space absorption. The premium segment remained passive as affordable housing GENERAL BUYING SENTIMENT grabbed a majority share of buyer demand. Any significant deviation in Buyer confidence ameliorated for RERA-approved projects. A resurgence of fence-sitters in select pockets, average weighted capital ‘asks’ is likely to happen around Oct-Dec 2018. driven by connectivity and job opportunities, was a testimony to the reviving market. Conversion rate improved, albeit minimal. The affordable housing sector garnered maximum buyer interest, however, RERA registration alone did not suffice to drive buyers towards under-construction properties. RENTAL LANDSCAPE The rental landscape continued to remain upbeat for the seventh consecutive quarter. Rental values witnessed a notable hike across cities, PROPERTY PRICES except Delhi NCR and Pune where a pile-up of ready inventory inflicted the Enquiries resurfaced and led several housing pockets register an uptick in property prices. While market. The growth is likely to continue for a few more quarters, until home Hyderabad reported a notable rise in residential property rates, Pune and Chennai maintained status quo. buying picks up pace and sees a complete revival. Delhi NCR and Mumbai reported a price correction in the last one year due to discounts offered by developers to lure buyers back into the market. SUPPLY The hiatus in new launches amidst piling residential stock helped cities such as NEW LAUNCHES Bangalore, Mumbai, Pune, Chennai and Hyderabad rationalise inventory levels. New launches nose-dived across cities due to increased compliance under RERA. Chennai, Hyderabad and Slow-paced registrations under RERA played a key role in curtailing the saleable Kolkata reported a 50-70 percent dip in launches, YoY, largely owing to delayed notification of RERA rules. primary stock. The trend is expected to continue as no exceptional measures Delhi NCR, Mumbai, Bangalore and Pune, too, witnessed new launches coming to halt. A year later, the are being observed to fast-track RERA registrations. markets seem to have gained ground with new launches reporting an improvement, QoQ. 99acres India’s No.1 Property Portal INSITE : MUMBAI 7 99ACRES OUTLOOK Market Movers Emulating the real estate sentiment prevalent in Delhi NCR and Bangalore, Mumbai too, entered the orbit of recovery in 2018. The Apr-Jun 2018 quarter witnessed State approves Mumbai Development Ready reckoner rates kept unchanged end-users heading to localities boasting of surplus affordable properties and sturdy Plan 2034 Maintaining status quo in RR rates is expected infrastructure. Almost 50 percent of the total demand was for properties priced within After multiple revisions and alterations, the to trigger residential demand in Mumbai and Rs 40 lakh. Not surprisingly, the residential pockets of Ulwe, New Panvel in Navi Mumbai Development Plan 2034 was finally Pune. Revenue collection has also gone up this Mumbai and Kolshet, Karjat in Thane reported maximum enquiries. approved by Maharashtra government. With year, implying that demand is contained and Maharashtra government’s plan to develop 10 lakh affordable homes under PMAY a special focus on affordable homes and any change in market dynamics could elicit a on the salt-pan lands of Malwani, Gorai, Jogeshwari and Mulund augurs well for the employment generation, the plan commits volatile reaction. future of Mumbai. Further, the expansion of the transport infrastructure – Mumbai to create a million budget houses and eight Metro 2A, freeway from Airoli to Kalyan, Mulund-Goregaon link road and Dahisar million jobs in the city. Freeway from Airoli to Kalyan set to enhance Thane’s transport grid East-Andheri metro corridors – is anticipated to transmute the city’s realty fortunes in Over 10 lakh homes under affordable The Mumbai Metropolitan Region Development the forthcoming quarters. An unsold inventory of 86,000 units, may however, prove a housing mission Authority (MMRDA) is set to develop a freeway deterrent to the city's realty growth. The State government decided to construct 10 from Airoli in Thane to Katai Naka in Kalyan To propel sales volume, the State government has to ensure fast-paced infrastructure lakh affordable homes under Pradhan Mantri at an approximate cost of Rs 950 crore. development, while being committed to the efficient implementation of MahaRERA. Awas Yojana (PMAY) on salt-pan lands in Estimated to be completed in three phases, Further, bridging the demand-supply gap in the affordable housing bracket, especially Malwani, Gorai, Jogeshwari and Mulund. Under the tenders for the project have already in Navi Mumbai, holds the key to motivating long-time the Development Plan 2034, these land parcels been floated. fence-sitters foray into the property market. Crystal gazers, however, believe will be converted into residential areas, helping that actual real estate growth can be tracked only after the festive quarter decongest the city, rationalising property of Oct-Dec 2018. prices and boosting affordable housing. Mumbai Metro 2A construction work in full swing The 2A project of Mumbai metro is going on Price Movement in Key Micro-markets with full gusto as nearly 50 percent of the piers have been established. The 18.6 km-long DN LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE Nagar and Dahisar via Link Road route will Panvel 5,600 - 6,700 1% 9% have its first station at Kasturi Park in Malad. Set to be completed by 2019, Kharghar 7,500 - 8,900 1% 5% the metro route is anticipated to Dombivli (East) 5,000 - 6000 2% 0% ease commutation along the stretch. Ulwe 6,100 - 7,000 4% 9% Kalyan (West) 5,200 - 6,300 3% 4% Andheri (West) 18,800 - 23,500 1% 6% Badlapur 3,000 - 3,700 1% 6% Virar 3,700 - 4,600 2% 1% Kandivali (West) 12,300 - 15,600 2% 5% Borivali (West) 15,100 - 17,800 1% 1% * 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 : MUMBAI 9 MUMBAI The prospering and price competitive KEY HIGHLIGHTS SUPPLY OF APARTMENTS markets of Navi Mumbai and Thane UC RTM DEMAND UC RTM SUPPLY pulled demand away from Mumbai’s Stringent action under MahaRERA played a major spoiler for the 72 bridges, 21 flyovers, two overpasses, two rail over bridges, and 35 Vehicular exorbitant central areas.