Apr-Jun 2013 - Magicbricks.com

Hyderabad adds zing to the opening edition of Propindex Volume III

Telangana may be debated in political and social circles and opinions may bedivided over whether it was a politically correct move. But Hyderabad’sproperty market has clearly shown that these issues need not determine thecourse of the city’s business or property markets. A whopping 11 per cent riseas compared to the national average of 2 per cent. The Price Monitor’s 10 percent rise shows the city’s growth has been across the board and fairly even.

Hyderabad was no aberration. At a time of rising inflation, slowing economyand a country headed towards general elections, the country’s real estatemarkets have shown that residential markets are dictated by soundfundamentals and realistic price. Chennai’s growth was on the back of apotisive business environment and steadily increasing stock along growthcorridors. Bangalore’s falling index value was largely because of thecorrection in values in the North zone which has pushed the city index up inan earlier quarter. Delayed infrastructure projects also got a clear thumbsdown from consumers. Positive growth stories from Ahmedabad is mirroredin its rising index values.

Does this indicate that the Indian property buyer has matured? Trends showthat with the exit of the investor and speculator, end users are driving trendsbased on sound economic growth and structured planned infrastructure.India may well be moving towards a planned growth story, at least in theproperty markets with values as the monitor of city governance.

City zones have a distinct role to play. So also do transport links. As theadvance of the metro as well as flyovers and expressways expose the lesserknown areas to access and therefore structured development, developers aremoving in with projects that attract all ends of the spectrum.

This is the 9th issue of PropIndex and 9 straight quarters of reporting marketperformance has led to Magicbricks.com building a large repository ofdata/values about property markets across cities. It shows that demandremains robust across the spectrum. The requirement at the base of thepyramid remains strong and select cities have seen the private sector cateringto these. But surprisingly for a weak economic scenario, the demand at the topof the pyramid showed robust growth in demand, fuelled by end users. High-end consumers have seen this as an opportunity to upgrade lifestyle and seekbetter, newer units with amenities to match their growing expectations. Butthe winners have been those who have managed to strike a balance betweenprice, amenities and luxury. So go ahead and invest intelligently and let ourvalues be your guide

FOREWORD

Sudhir PaiBusiness Head, [email protected]

MagicBricksPropIndexMagicBricks.comPropIndex is a tool whichempowers propertyseekers and investors withdetailed information onthe movement ofresidential apartmentprices and supply ofproperties in India. Nocredible property indexcan be a function of directvalues as the changes aregoverned by multiplefactors.

MagicBricks.comPropIndex has taken thisreality into account andproduced an index basedon listing of apartmentsand their capital andrental values on thewebsite.

MagicBricks.com has over 500,000 active propertiesposted by more than1,50,000 active users in 300cities and 10,000 localities.Our users include owners,agents and developers.

MethodologyApartment values arebased on listings onMagicBricks.com. Theseinclude multistoreyapartments and singleunits on plotteddevelopments, referred toas builder floors onMagicBricks.com.

The Index is structured in

such a way that individualproperties are aggregatedinto their respective citiesand then to the NationalIndex. Weightages forPropIndex are based on thesupply of propertieswithin the locality/city.Based on this structure,PropIndex gives a realisticpicture of trends inprice/supply acrossdifferent property marketsin each city. We have useddifferent weightages forListed Price Monitor/RentMonitor. Therefore, read asa whole, PropIndex alongwith tables provided forListed Price Monitor, RentMonitor, Yield Monitor andCapital Values, gives anexcellent perspective ofthe property marketperformance in thequarter.

While listing and itsvalues/supply provide alevel of understandinginto the market, there aremeticulous data checks toprevent aberrationscreeping into the Index.These are based onstatistical calculations,industry inputs and logicalinterpretations.

The National PropertyIndex (NPI) is indicative ofthe extent of activity aswell as price movementsacross cities and localitiesin the major cities activeon MagicBricks.com. Theindex includes the top 11

cities (these have beenchosen based on theiractivity levels) and has anindividual city report foreach of these cities. Whilethe NPI and its movementsare of interest to theexpert community ofbankers, builders andinvestors, the PropIndexhas also taken care toexplain the nuances ofindex movements at thelocality level that wouldhelp the huge base ofMagicBricks.comconsumers.

Insights into consumerdemand have beengathered through analysisof search information onthe site. This helpsunderstand the bestlocalities by demand, thetype and configuration ofunits as well as the budget-wise preferences.

The PropIndex is the resultof meticulous research atthe locality level andthrough detaileddiscussions with experts atMagicBricks.com’s offlineand online initiatives.

The Indian real estatemarket is dynamic and thePropIndex reflects thosechanges. Since it is derivedfrom a dynamic database,additions and deletions oflocalities happen as afunction of marketdynamics.

METHODOLOGY

There is a wealth of information within these pages. For better readability, we have presented some data as tablesand others as graphs. Between them, you will find how property markets have performed in the Apr-Jun 2013quarter from different perspectives – from that of capital appreciation, from a rental/yield realisationperspective and from a supply standpoint. Also in Demand Analysis section, understand what consumers look for.

We recommend that you evaluate the city report in its entirety and that will provide a rounded perspective of theperformance of the property market within each city. Here are the details of what you will find in each of the cityreports enclosed within -

1. City Property Index – This is a composite index which is a function of supply of properties as well as theaverage capital appreciation/drop in various localities of the city in the quarter. The city index is theweighted average of the average rate per square foot in that locality and the supply of properties from thatlocality. Premium localities (with higher average rate per square foot) as well as localities with higher supplyof properties will have a bigger impact on the Index. For example, if the supply of properties from apremium locality drops, that locality will end up having a lower weightage in the index which in turn willpush 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 calculatedon the basis of movement in the “average rate per square foot” within that locality. By and large, themovement in the “average rate per square foot” reflects capital appreciation/ drops. However, in a few selectcases, we have observed that the average rate per square foot moves due to a change in the mix of apartmentswithin 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 thisinput. 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 ofmovement 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/drops. However, in a few selected cases, we haveobserved that the average rent per square foot moves due to a change in the mix of apartments within thatlocality (e.g. if the ratio of premium apartments, which command a higher per square foot rent, changes overthe quarter). In these few circumstances, the Rent Monitor will, in turn, reflect this input. Such changes havebeen 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 yieldpercentages across various localities. Gross yield is a ratio of average annual rental value to the averagecapital value of the property.

5. Capital Value Tables (given in Annexures) – This shows the actual range of prices within which propertieswere available in each locality in the quarter. Prices are shown in Rupees per square foot basis; these are theprevailing rates for properties in each locality.

6. Demand Analysis –This analysis of consumer demand is based on searches and requirements that usershave performed on MagicBricks.com. The top localities by demand gives an insight into consumerpeferences. The demand data has been used to arrive at various aspects of consumer requirements includingBudget-wise analysis, Property type analysis and BHK configuration analysis. This section also provides acomparison between demand and supply in the Jan-Mar, 2013 and Apr-Jun, 2013 quarters.

7. Realty News – Property market performance is also dependent on drivers outside the purview of buyingand selling. There are broadly four key drivers that determine the prospects of real estate – infrastructuresuch as water and power, transport links creating new growth corridors, policy such as rental laws, propertytax, etc and return on investment. PropIndex also focuses on news bytes that impact future prospects of realestate in the city.

GLOSSARY & DEFINITIONS

APR-JUN 2013

The National Property Index is aweighted average of supply andvalues across 11 cities in India. Inthe latest quarter (Apr-Jun 2013)the NPI witnessed a rise of 2 percent. Of the 11 cities in theapartment index, 9 have seen arise while the others registered asmall drop in the city indexvalues. Hyderabad was the biggestgainer with a whopping 11 percent rise. It was followed byChennai with 8 per cent rise,Ahmedabad and Gurgaon with 4 per cent each, Noida andGhaziabad with 3 per cent andPune and Mumbai with 2 and 1 per cent respectively. Bangaloreand Delhi registered a drop of 6 and 3 per cent respectively whilethe city index in Kolkataremained unchanged.

Historic NPI trend PropIndex has been tracking theNPI for the last nine quarters.Clearly, in spite of all theeconomic upheavals and

inconsistencies across industriesincluding real estate, the NPI hasnot dropped at any point in thelast three years. In fact, the NPIhas actually risen by 2-6 per centin each quarter since Jan-Mar2011, recording a rise of 34 points.This indicates that either demandin the market has remainedupbeat over these years or thestock in the market has remainedstrong or both. This is alsoindicative of the fact that realestate in India is always activeirrespective of the prevailingeconomic situations in thecountry. The category and value ofthe actively traded property keepsshifting according to consumersentiments.

At the national level, buyerinterest for properties pricedbetween Rs 30-50 lakh remainedrobust at 25 per cent. Bangaloreand Pune were the majorcontributors recording more than35 per cent of the total demand inthis segment across cities. Thisfact was reinforced by the hugedemand for 2BHK units across all

cities tracked. Nine out of the 11 cities witnessed maximumdemand for 2BHK units.

Read what experts predict aboutthe city’s prospects in the nextquarter. Brokers have a ear to theground. They give views on citymarkets.

n Mumbai, Gurgaon andBangalore account for45 per cent demand for3BHK units.

n Property worth betweenRs 30-50 lakhwitnessed maximumdemand q-o-q with 25 per cent.

n Buyers look for politicaland economic certainty,adopt wait and watchapproach.

IN THIS REPORT:

National Property Index...............1

Delhi.........................................4

Gurgaon...................................10

Noida & Ghaziabad................... 16

Mumbai....................................24

Pune........................................30

Ahmedabad..............................36

Kolkata...........,........................ 40

Chennai....................................46

Hyderabad................................52

Bangalore.................................58

Annexures.................................65

NATIONAL PROPERTY INDEX (NPI)

VOL 3, ISSUE 1; APR-JUN, FY 2013-14

APR-JUN 2013

propindex.magicbricks.com

2VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com

NATIONAL PROPERTY INDEX

l The Rs 30-50 lakh budget rangecontinued to be the mostpreferred category with 25 percent buyer demand. Bangaloreand Pune were the majorcontributors.

l Demand for premium housingpriced above Rs 1 crore saw adrop of 5 per cent in buyerdemand during the Apr-Mar2013 quarter.

l 2BHK apartments remained themost supplied configuration insix out of 11 cities.

l A rise in the city index in 9 outof 11 cities during the quarter,indicated an upbeat propertymarket across cities.

The Ahmedabad City Indexregistered a 4 per cent growth inthe Apr-Jun 2013 quarter over theprevious quarter. The city isenjoying considerable attentionfrom the services sector and anumber of IT/ITeS, banking,finance and insurance companiesare establishing their offices here.The growth in the service sectoris further complemented byindustrial development.

Bangalore recorded a significantdrop of 6 per cent in the city indexduring the Apr-Jun 2013 quarter.

North Bangalore reported aplateauing-off of the market withsales not increasing as expected.Developers attribute this to thedelayed infrastructuredevelopment projects. This mighthave had a negative impact on thecity index. Further, more than 55per cent of the localities trackedacross the city, recorded a drop inaverage capital values, which alsopushed the index down. Over-supply in some locations toonegatively impacted the index.

Chennai posted an 8 per cent risein the City Index. The Listed PriceMonitor also moved up by 5 percent. This may be attributed to theincreasing supply in almost 90 percent of the localities tracked.Further, nearly 70 per cent of thelocalities recorded a rise inaverage capital values during theApr-Jun 2013 quarter. This againhad a positive impact on the cityindex as well as the price monitor.

The Delhi City Index dropped by 3 per cent during the Apr-Jun 2013quarter. The Listed Price Monitorrecorded no change. Drop insupply of housing units, both newas well as resale properties,combined with stable averagecapital values in impacterlocalities such as Dwarka, GreaterKailash II and VasundharaEnclave pushed down the price

monitor. Rise in average values in24 per cent of the localities keptthe price monitor unchangedduring the Apr-Jun 2013 quarter.

The Ghaziabad Index rose by 3 per cent during the Apr-Jun 2013quarter. However, the pricemonitor recorded a dip of 2 percent in the same period. Increasein average capital values,particularly in localities such asBhopura and Raj NagarExtension, coupled with enhancedsupply in almost 53 per cent of thelocalities resulted in the cityindex moving up. On the otherhand, falling capital values insome of the most active locationssuch as Indirapuram and Vaishaliled to a dip in the price monitor.

The Gurgaon City Indexwitnessed an increase of 4 per

Locality RankQ1 Q4

Mumbai 1 1

Bangalore 2 2

Pune 3 3

New Delhi 4 4

Hyderabad 5 5

Kolkata 6 8

Chennai 7 6

Gurgaon 8 7

Noida 9 9

Ghaziabad 10 10

Preferred Localities - Sale

Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013

Preferred Localities - Rent

Locality RankQ1 Q4

Mumbai 1 1

Bangalore 2 2

Pune 3 3

New Delhi 4 4

Chennai 5 5

Hyderabad 6 7

Gurgaon 7 6

Kolkata 8 8

Noida 9 9

Ahmedabad 10 10Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013

3VOL3, ISSUE 1; APR-JUN, FY 2013-14 propindex.magicbricks.com

cent in the Apr-Jun 2013 quarter.The Listed Price Monitor alsorecorded an increase, reflectingan improved market. This wasprimarily due to increasing buyerinterest mainly from the MNCsand other offices located in thecity. An upward trend was notedin the supply as well as in theaverage listed price for more than70 per cent of the localitiestracked. This is the prime reasonfor the increased city index andthe price monitor.

After recording a 3 per cent dropin the City Index in Jan-Mar 2013,Hyderabad’s residential markethas picked up pace in the Apr-Jun2013 quarter and has gone up by 11 per cent. The Listed PriceMonitor also went up by 10 percent in the same period, clearlyindicating a healthy rise in capitalvalues across various localities.Industry experts believe that a lotof improvement in the otherwisestable market has happened due tohigh activity in the IT/ITeSindustry. This has boded well forthe real estate market as demandfor housing has received animpetus.

The Kolkata City Index did notwitness any rise during the Apr-Jun 2013 quarter. However, theListed Price Monitor rose by 3 percent. While the increasing capitalvalues in more than 60 per cent ofthe localities accounted for thepositive price monitor, a drop in

capital values of actively listedlocalities such as EM Bypass andBehala restricted the upwardmovement of the city index. Thismay be attributed to the launch ofnew projects at comparativelylower rates and a situation ofover-supply in these locations.

The City Index for Noidaregistered an increase of 3 percent in Apr-Jun 2013. IT/ITeS andother industries have led to hugeemployment generation in Noidawhich augurs well for housing.Increase in availability of units innew developing sectors coupledwith small rise in average capitalvalues across the city kept the cityindex and price monitor up.

The Pune City Index rose by 2 percent during the Apr-Jun 2013quarter on the back ofconsistently rising average capitalvalues across the city. Further, anincrease in supply also led to thepositive movement of the pricemonitor and the city index.Capital values in the city rose by1-8 per cent across differentlocalities.

The Mumbai City Index rose by 1 per cent during the Apr-Jun 2013quarter while the price monitorrose by 5 per cent. Increasedsupply in the market coupled witha rise in the average listed pricespushed up the city index and theprice monitor. Several localitiesposted higher capital values.

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

National - Consumer Budget Preference

30%

25%

20%

15%

10%

5%

0%

16% 15%

25%

14%12% 11%

7%

TOP Y IELD GROSSERS

Gross yield is a ratio of average annualrental value to the average capital valueof the property. Given below are the topyield-grossing localities in each city.

Locality Gross yield

Bangalore, Electronic City 5.40%

Kolkata, EM Bypass 5.03%

Hyderabad, Kondapur 4.24%

Ahmedabad, Vejalpur 3.72%

Mumbai, Parel 3.52%

Noida, Sector-92 3.44%

Ghaziabad, Indirapuram 3.09%

Pune, Viman Nagar 3.06%

Gurgaon, MG Road 2.66%

Chennai, Anna Nagar 2.63%

Delhi, Vasundhara Enclave 2.33%

CAPITAL GAINS

The table given below indicatesmaximum increase in capital values ineach city.

Locality % Change

Noida, Sector-150 15.23%

Hyderabad, Gachibowli 14.50%

Bangalore, Koramangala 9.79%

Chennai, Saligramam 9.73%

Ghaziabad, Govindpuram 8.85%

Kolkata, Jodhpur Park 8.47%

Pune, Bavdhan 8.41%

Mumbai, Colaba 8.05%

Ahmedabad, Gurukul 6.51%

Gurgaon, Sector-86 5.63%

Delhi, Malviya Nagar 3.70%

MUMBAI 24VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com

CITY PROPERTY INDEX

The Mumbai City Index rose by 1 per cent during the Apr-Jun 2013quarter in contrast to the 5 per cent rise that was witnessedin the Jan-Mar 2013 quarter. TheNPI, meanwhile, rose by 2 percent during the said period.

The Apr-Jun 2013 quarter saw arise in capital values by variedmargins in different localities inthe city. For instance, in placessuch as Dombivili East, Nerul andVasai, capital values moved up bymore than 6 per cent in the lastthree months indicating a positivetrend in the market.

In other localities such asGoregaon West, Andheri West andPowai, capital values have beenconstantly rising since the last sixmonths indicating resurgence insale values in the city.

The rental market was also robustwith rental values depicting anupward movement in severallocalities across the city.

The MagicBricks.com yield metervaried from 1.85 to 3.52 per centduring the Apr-Jun 2013 quarteras compared to the range of 1.88-3.59 per cent registered in theJan-Mar 2013 quarter.

Parel posted the highest rentalyield, a trend that was noted inthe pervious quarter as well (Jan-Mar 2013).

LISTED PRICE MONITOR

As observed in the Jan-Mar 2013quarter, property values inMumbai continued to rise in theApr-Jun 2013 quarter as well.

While in Dombivali East capitalvalues shot up significantly bynearly 8 per cent in the Apr-Jun 2013 quarter, price hikein localities such as Vasai andNerul settled just above 6 per centduring the same period.

Capital values in Dombivili havelargely remained stable in the lastsix months. Philin Joshi of HappyHomes, a city based realty firmexplains the sudden spurt incapital values. “Dombivali East

Price Monitor indicates 5% increase in the average sale price

L I S T E D P R I C E M O N I T O R

PROPINDEX - MUMBAI QUICKSTATS

n Yield Meter: Yield ranges between1.85% to 3.52%

n Capital Values rose in 80% localities

n Rental Values rose in 56% localities

n City Index rose from 126 to 127

n Price Monitor rose from 121 to 127

5%

MUMBAI25VOL3, ISSUE 1; APR-JUN, FY 2013-14 propindex.magicbricks.com

has a significant presence ofLodha Builders, one of therenowned developers in the city.The group has recently launcheda couple of projects in the localitythat are priced above the otherprojects here, as these belong tothe premium segment.” Thus, thehigh price of these projects haspushed the average values in thelocality.

As far as Vasai and Nerul areconcerned, the affordability factorhas ensured a constant rise inresidential demand in theselocalities over a period of time.“Vasai is one of the frontier

suburbs amongst the westernsuburbs that offer housing withina budget of Rs 35-45 lakh to thecommon man. Demand has alwaysbeen on the rise here, therebypushing capital valuesconstantly,” states Amit Jai Singh,MD Realty Pros India.

The usual upward movement ofreal estate prices was witnessedacross most of the localities inMumbai. A rise of nearly 2-4 percent was registered for severallocalities such as Khargar, MiraRoad, Chembur, Wadala,Seawoods, Bandra West, BhandupWest and Borivali East, among

others. In Chembur, the positivetrend depicted in capital valuesmay be attributed to the recentopening of the Eastern Freeway,connecting the locality to SouthMumbai, reducing the travel timeto just about 20 minutes.

RENT MONITOR

As per MagicBricks.com dataduring the Apr-Jun 2013 quarterthe rental market in the city wasrobust, with 56 per cent of thelocalities across the citywitnessing a rise in rental values.Localities in Navi Mumbai suchas Khargar and Seawoodcontributed significantly to this rise. For instance, Khargar inNavi Mumbai clocked themaximum rise is rental values of

RENT MONITOR

Rent Price Percentage Change

“In overall, the real estatemarket in Mumbairemained sluggish due toweak sentiments at bothglobal and nationallevels. Demand foraffordable, 2BHK units isstill good, however, theprices for these units arehitting Rs 90 lakh-Rs 1crore mark.”

Diipesh BhagtaniExecutive DirectorJaycee Homes

Locality Average Rental Average Capital Gross

Value (Rs/sqft/mth) Value (Rs/sqft) Yield

Parel 71.5 24350 3.52%

Bandra West 74.5 38625 2.31%

Powai 36 15525 2.78%

Andheri West 41.5 19125 2.60%

Chembur 33 15650 2.53%

Kamothe 8.5 5500 1.85%

Goregaon East 33 13900 2.85%

Andheri East 35 14725 2.85%

Kandivali East 28 13575 2.48%

Malad West 33 14525 2.73%

Y I E L D M E T E R NEW


housing units during the Apr-Jun2013 quarter. A rise of 9 per centwas noted for the same.

Due to exorbitant real estateprices in the city, owning a househas become a distant dream forthe common man. Mostprofessionals prefer to live inrented apartments. Localities inNavi Mumbai not only offer lowerrental values, but wider optionsto choose from as well. Thusincreased demand has led torising rental values in the locality.

Vicky Wadhwa, Head, SpecialProjects, Sai Estate Constructionssays that rise in rental values in

Chembur, situated in proximity toKhargar and Seawoods, due to theopening of the Eastern Freewayand the monorail, has also led tothe demand shifting towardsKhargar and Seawood. Otherlocalities that recorded a rise inrental values included PalmBeach, Sanpada, Kandivali West,Koper Khairane and Bandra Westamong others. However, fallingdemand resulted in a drop of 5 per cent in rental values oflocalities such as Prabhadevi and Wadala.

Redevelopment is being quoted asthe prime reason for properties inAndheri West undergoing a pricehike in the recent past.“Maharashtra Housing and AreaDevelopment Authority (MHADA)has collaborated with several bigdevelopers in the city to re-develop the old buildings in thelocality. Construction activity isalmost halfway and the locality isbeing converted into an upscaleregion. These developments havegiven an impetus to real estatevalues in the locality,” adds Jai Singh.

A lot of infrastructuredevelopment is pending inGoregaon West ever since it wasdeclared a part of the districtcentre by the MumbaiMetropolitan Region DevelopmentAuthority (MMRDA). Projectssuch as the two flyovers that

would directly connect to theWestern Expressway are nownearing completion.

Mumbai builders see an opportunity in small homes Single working individuals and newly-married couples, trappedin rising property prices, uncertain job markets and a gloomymacro-economic scenario, are reconsidering the option of buyingthe more affordable one-bedroom apartments in Mumbai. Thesehome buyers, confident of good increment and job security in thepast few years, were prefering two-bedroom apartments, orsomething even fancier. But things have changed and these folksaren’t ready for higher liabilities of owning bigger apartments.Property developers, who too stayed away from this segment dueto lower margins, have sensed a change in mood and have spottedan opportunity in the one-bedroom category.

n The Times of India, Mumbai

No vertical limits for highrises in Mumbai There are no vertical limits for the city. Restrictions imposed onhighrise activity by the Union Environment Ministry are set to berelaxed. The ministry has earlier argued that highrises incongested areas put the life of its occupants at risk duringemergencies. Going by the guidelines, a structure higher than 60m (20 floors) was permitted only if the width of the road in frontof it was 30 m or more. Also, its distance from the nearest firestation had to be 2 km or less. A 45-60m structure (15-19 floors) wasallowed on 24-m-wide roads and its distance from the nearest firestation had to be within 5 km.

n The Times of India, Mumbai

Redevelopment and small housing units created a buzz in the Mumbai real estate market in the past quarter. With 7,200 newhouses added in erstwhile slum areas, the Mumbai market tried to add inventories to meet the burgeoning demand.Developers too are catering to this demand.

To read full story and more news go to www.content.magicbricks.com

“The markets for outrightsale has been stagnant inthe last two months dueto lower buyer interestand high prevailing price,across all micro-marketsin Mumbai. The situationis slightly better in resaleresidential market wherebuyers are seeking ready-to-use apartments.”

Ramprasad Padhi Founder & CEOMumbai Properties

R E A L T Y N E W S

Preferred Localities - Rent

Locality RankQ1 Q4

Andheri West 1 1

Andheri East 2 2

Powai 3 3

Goregaon East 4 4

Malad West 5 7

Kandivali East 6 6

Kharghar 7 5

Bandra West 8 8

Chembur 9 9

Airoli 10 -Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013

Locality RankQ1 Q4

Andheri East 1 4

Andheri West 2 1

Mira Road 3 2

Goregaon East 4 5

Kandivali East 5 6

Kharghar 6 3

Malad West 7 8

Powai 8 7

Borivali West 9 9

Kandivali West 10 -

Preferred Localities - Sale

Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013


Budget wise Analysis - DEMAND

120

100

80

60

40

20

0

Q4 (Jan-Mar 2013)

Q1 (Apr-Jun 2013)

Fig

ures

in p

erce

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)

South Mumbai Central Line Central Western Navi Mumbai ThaneMumbai Suburbs

Q4 Q1

6059

Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1

13

12

12 11

12

14

Rs <20 lakh Rs 20-50 lakh Rs 50-100 lakh Rs 1-2 crore Rs 2 crore and above

1612

28

30

21

9

14

32

34

3736

21

23

15 17

20

23

1915

23

32

23

7

15

33

29

10

34

44

10 9

46

34

9 22

50

22 20

51

23

Budget wise Analysis - SUPPLY

120

100

80

60

40

20

0

Q4 (Jan-Mar 2013)

Q1 (Apr-Jun 2013)

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Q4 Q1

9093

Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1

2520

43

21

11

21

49

7879

15 13

3427

31

25

13

24

36

13

43

36 35

42

14

33

42

6

44

36

1112

City Level Analysis

l Similar to the Jan-Mar 2013quarter, demand for properties inthe budget of Rs 50 lakh to Rs 1 crore topped the charts.

l Minute variations in demand forbudget ranges of Rs 20-50 lakh andRs 2 crore and above was seen.

l Supply of Rs 20-50 lakh budgetdropped by 4 per cent, supply of Rs 1-2 crore budget rose by 2 per cent and that of Rs 2 croreand above rose by 3 per cent.

Zone Level Analysis

l Demand for lower budgetproperties worth up to Rs 20 lakhremained lowest in the city. Itsdemand dropped by 1-5 per cent inall zones of the city in the Apr-Jun2013 quarter. Thane recordedmaximum demand for this budget.

l The budget of Rs 20-50 lakh wasmost demanded in Navi Mumbaiand Thane. Its demand came downby 7 per cent in Western Suburbsand Central Line.

l Navi Mumbai also recorded ahealthy but stable demand forproperties worth Rs 50 lakh to Rs 1 crore. Central Mumbaireported a drop of 3 per cent indemand for this budget as well.

l Premium properties valued at Rs 1 crore and above werereportedly most asked for inSouthern Mumbai followed byCentral Mumbai. Thane recordedleast demand for this budget range.

l Supply of properties worth up toRs 20 lakh was low in all zones ascompared to demand. The gap wasmajorly visible in Thane wheresupply fell short by 13 per cent.

l The Rs 20-50 lakh and Rs 50 lakh-Rs 1 crore properties were mostsupplied in Navi Mumbai andThane.

40

30

20

10

0<20 20-50 50-100 100-200 200 &

above

8

Fig

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in p

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)

Figures in Rs lakh

8

27 2831 31

20 20

14 13

(Jan-Mar 2013)

(Apr-Jun 2013)

Budget wise Analysis - City Level

DEMAND

40

30

20

10

0<20 20-50 50-100 100-200 200 &

above

4Fig

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in p

erce

ntag

e(%

)

Figures in Rs lakh

3

22

18

28 2824

26

2225

(Jan-Mar 2013)

(Apr-Jun 2013)

SUPPLY

7

DEMAND - S UPP LY ANALYS I S

Budget Wise Analysis

City Level graphs represent demand and supply in differentbudgets in the city in two quarters. Zonal Demand and Supplygraphs decode specific requirements, listings and changingavailability of these units across zones in each quarter.

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

7

Rs <20 lakh Rs 20-50 lakh Rs 50-100 lakh Rs 1-2 crore Rs 2 crore and above


Property wise Analysis - City Level

100

80

60

40

20

0

8791

11 82 1

(Jan-Mar 2013)

(Apr-Jun 2013)

Fig

ures

in p

erce

ntag

e(%

)

Multistorey Residential Residentialapartment house plot

DEMAND SUPPLY

100

80

60

40

20

0

8893

116

1 1

(Jan-Mar 2013)

(Apr-Jun 2013)

Fig

ures

in p

erce

ntag

e(%

)

Multistorey Residential Residentialapartment house plot

Property wise Analysis - DEMAND

120

100

80

60

40

20

0

Q4 (Jan-Mar 2013)

Q1 (Apr-Jun 2013)

Fig

ures

in p

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Multistorey apartment Residential house Residential plot

Q4 Q1 Q4 Q1

8190 92

Q4 Q1

86 91

Q4 Q1

88 92

Q4 Q1

88 91

Q4 Q1

848887

17 12 9 7 13 8 11 7 9 7 14 10

Property wise Analysis - SUPPLY

120

100

80

60

40

20

0

Q4 (Jan-Mar 2013)

Q1 (Apr-Jun 2013)

Fig

ures

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Multistorey apartment Residential house Residential plot

Q4 Q1 Q4 Q1

88 9195

Q4 Q1

88 93

Q4 Q1

88 94

Q4 Q1

88 92

Q4 Q1

8592

91

11 8 8 4 11 6 11 5 10 7 13 6

City Level Analysis

l Multi-storey apartments continuedto be the most preferred propertytype in the city. Its demand went upby 4 per cent during the Apr-Jun 2013 quarter.

l Supply of multi-storey apartmentsin the Apr-Jun 2013 quarterexceeded demand by 2 per cent andremained at 93 per cent, themaximum in the city.

l Demand and supply for residentialhouses in the city dropped by 3 and5 per cent, respectively.

Zone Level Analysis

l Demand for multi-storeyapartments soared in all zones ofMumbai by 2-6 per cent. Areas onthe Central Line such as Powai andBhandup and Western Suburbssuch as Andheri, Mira Road,Bandra and Kandivali recordedmaximum demand (92 per cent) for these units.

l Demand for residential houseswent down across the whole city.South and Central Mumbairecorded the largest fall of 5 per cent. However, Southernareas such as Lower Parel, Colabaand Byculla continued to receivemaximum demand for houses.

l Demand for plots in the cityremained low and relatively stable.

l Supply of multi-storey apartmentsremained maximum in areas onthe Central Line and the WesternSuburbs. Both the areas recorded arise of 5-6 per cent in the supply ofthese units. Thane recorded amaximum increase of 7 per cent inthe supply of multi-storeyapartments. Supply soared in areassuch as Ghodbandar Road, Kalyanand Dombivali East.

l Supply of residential houses alsodeclined in all zones. Thane againrecorded the maximum decline.Supply of these units concentratedon southern localities such asNepeansea Road and Lower Parel.

l Residential plots remained theleast supplied. Thane deliveredmaximum plots in Apr-Jun 2013.

14

Property Wise Analysis

The first graph, Property-wise Analysis – City Level, depictshow demand and supply statistics for different property typeshave changed at the city level over a period of six months.

The Property wise graphs by Demand and Supply comparebuyer requirements and the existing listings for variousproperty types in different zones in the six-month period fromJanuary 2013 to June 2013.


BHK Configuration - DEMAND

120

100

80

60

40

20

0

Q4 (Jan-Mar 2013)

Q1 (Apr-Jun 2013)

Fig

ures

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1 BHK 2 BHK 3 BHK 4 BHK & above

Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1

2832

37

24 28

37

3638

43

1715

46

3634

40

21 20

39

4445

38

14 15

38

4443

43

13 11

44

5556

36

7 7

37

7 7

BHK Configuration - SUPPLY

120

100

80

60

40

20

0

Q4 (Jan-Mar 2013)

Q1 (Apr-Jun 2013)

Fig

ures

in p

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)


1 BHK 2 BHK 3 BHK 4 BHK & above

Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1

1414

31

34 34

32

2725

42

27 28

40

1615

35

36

33

3130

40

24 23

41

33 34

49

1414

50

42 42

44

1213

43

21 20 156 16 6

34

BHK Configuration - City Level

50

40

30

20

10

0

44 44

3940

15 14

2 2

(Jan-Mar 2013)

(Apr-Jun 2013)

Fig

ures

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)

1 BHK 2 BHK 3 BHK 4 BHK &above

DEMAND SUPPLY

50

40

30

20

10

0

31 31

42 42

21 21

6 6

(Jan-Mar 2013)

(Apr-Jun 2013)

Fig

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)

1 BHK 2 BHK 3 BHK 4 BHK &above

City Level Analysis

l Demand and supply of variousproperty configurations remainedstable in the last six months.

l 1BHK continued to be the mostdemanded configuration in thecity. However, supply of 1BHKunits was insufficient by 13 percent in the Apr-Jun 2013 quarter.

l In spite of being the second mostdemanded category, 2BHK unitswere the most supplied in the city.

l Supply of 3BHK units exceeded itsdemand by 7 per cent.

Zone Level Analysis

l Demand for 1BHKs witnessedminute variations across zones.The South registered a drop of 4 per cent while Central Line,Central Mumbai and Harbour Linesaw an increase of 2 per cent each.

l Thane received highest demand for1BHK units, especially in areassuch as Dombivali, Kalyan,Badlapur and Ghodbandar Road.

l Demand of 2BHK units went up by3 per cent on the Central Line inareas such as Bhandup andMulund. All other zones recordedalmost stable demand.

l Among all the zones, 3BHK unitswere most demanded in SouthMumbai, followed by CentralMumbai in the Apr-Jun 2013quarter. South Mumbai recorded ahike in demand for these units by 4 per cent.

l As per demand, almost all thezones recorded a shortfall in thesupply of 1BHKs. A mismatch of 9-20 per cent was reported in all thezones. Central Mumbai recordedthe maximum shortfall.

l Supply of 2BHK units remainedlargest in Navi Mumbai especiallyin localities such as Kharghar,Airoli, Ulwe and Vashi.

l Larger homes of 3BHK and 4BHKand above configurations weremost supplied in the South,followed by areas in CentralMumbai.

BHK Configuration Analysis

The City BHK Configuration graphs represent demand andsupply of 1, 2, 3 and 4 BHK apartments in the city in twoconsecutive quarters – Jan-Mar 2013 and Apr-Jun 2013.

The BHK Configuration graphs by Demand and Supplycompare buyer requirements and the existing listings forvarious configurations in different zones in the six-monthperiod from January 2013 to June 2013.

ANNExURES

Airoli 7550 to 8900

Ambernath 3200 to 3650

Andheri East 13500 to 16950

Andheri West 17350 to 22300

Badlapur 3000 to 3500

Bandra West 34850 to 45400

Bhakti Park 19150 to 21750

Bhandup West 11900 to 14350

Bhayandar East 5900 to 6950

Borivali East 10750 to 13600

Borivali West 11700 to 14300

Chandivali 14200 to 17050

Chembur 14450 to 17800

Dadar West 27150 to 32750

Dahisar East 8800 to 11050

Dahisar West 10250 to 12750

Dombivli East 5300 to 6500

Ghansoli 6650 to 8350

Ghatkopar West 13650 to 16450

Ghodbunder Road 7550 to 9250

Goregaon East 12700 to 16050

Goregaon West 13050 to 16550

Hiranandani Estate 10000 to 13350

Juhu 28150 to 36550

Kalyan 4350 to 5450

Kalyan West 4700 to 5750

Kamothe 5250 to 6000

Kandivali East 12550 to 15400

Kandivali West 11000 to 13650

Kanjur Marg East 11400 to 13450

Karanjade Village 4050 to 4650

Kasarvadavali 7250 to 8450

Khar West 32750 to 42050

Kharghar 6200 to 7650

Koper Khairane 7900 to 9800

Lower Parel 31200 to 41900

Mahalakshmi 32500 to 41050

Majiwada 10200 to 12200

Malad East 12000 to 14950

Malad West 13300 to 16750

Manpada 9400 to 10950

Mira Bhaiyandar Road 6050 to 7150

Mira Road 6000 to 7300

Mulund East 12700 to 15500

Mulund West 12000 to 15400

Nallasopara 3750 to 4600

Nepeansea Road 52650 to 67200

Nerul 8850 to 11300

New Panvel 3300 to 4350

Palm Beach 13550 to 17300

Panvel 3900 to 5150

Parel 22000 to 28550

Pokharan Road No. 2 10200 to 12150

Pokhran Road 10050 to 11850

Powai 14200 to 17900

Prabhadevi 33900 to 42650

Road Pali 4850 to 5650

Sanpada 10050 to 12550

Santacruz East 16200 to 20350

Santacruz West 29900 to 38500

Seawoods 8250 to 10400

Sion 13950 to 17800

Taloja 4000 to 4950

Thane West 8950 to 11750

Ulwe 4600 to 5500

Vasai 4400 to 5500

Vasant Vihar 10050 to 12300

Vashi 8850 to 11650

Vile Parle East 21700 to 26450

Virar 4050 to 5000

Wadala 18400 to 22000

Waghbil 7650 to 9000

Worli 32500 to 41250


CAPITAL VALUES – LOCALITY WISE

Average Listed Residential Apartment Prices

Locality Capital Values (Rs/Sq feet)

Locality Capital Values (Rs/Sq feet)

MUMBAI

VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com

D I S C L A I M E REvery effort has been made to make this Index as complete and as accurate as possible. MagicBricksaccepts no responsibility for inaccuracies in the information/data contained in this book. It shall haveneither liability nor responsibility to any person or entity with respect to any loss or damage caused, oralleged to have been caused, directly or indirectly, by the information contained in this book. Theinformation/data in this book is subject to change from time to time due to market condition.

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