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We are delighted to present to you the 3rd Edition of PropIndex!
We’ve received excellent response and feedback to the earlier editions. We’veattempted to make each edition of PropIndex better than the previous one. In line withthis, the current edition features a new section on demand analytics; for the first time,we feature information regarding “User Demand” – what users are seeking in terms oftype of property, budget range, location & BHK configuration. This information isculled out basis the actual search behaviour of lakhs of end users on our site. To putthis in perspective, Magicbricks.com gets over 35 Lac users each month, spread acrossgeographies, who “search” for houses on the site and post requirements. This processgenerates an enormous amount of data about what users are looking for. Basis thisdata, we have designed algorithms to churn this data and generate the output that younow see in this report. This is only a start; going ahead, we will further flesh out UserDemand at a more granular level and across other parameters and make thoseavailable in subsequent reports.
You will continue to find our regular indices here – the National/City Property Index(NPI/CPI), Price Monitor, Rent Monitor, Yield Monitor & Capital Values. In line withfeedback received, we’ve tried to make further improvements to our writing style andbreadth of coverage. We are thankful to the industry experts and leaders who, throughthe various platforms of Magicbricks.com, have shared their opinions and views withus – we’re happy to be sharing some of their views in the current issue of PropIndex.As always, we hope that this issue helps you see a different perspective of the marketand serves as a useful tool in making a more informed and intelligent real estateinvestment decision. We continue to seek feedback and look forward to hearing fromyou. Do write in!
Sudhir PaiBusiness Head, Magicbricks.com
FOREWORD
MagicBricksPropIndexMagicBricks PropIndex isa tool which empowersproperty seekers andinvestors with detailedinformation on themovement of residentialapartment prices andsupply of properties inIndia. No credible propertyindex can be a function ofdirect values as thechanges are governed bymultiple factors.
MagicBricks PropIndexhas taken this reality intoaccount and produced anindex based on listing ofapartments and theircapital and rental valueson the website.
Magicbricks.com has over 4 lakh active propertiesposted by more than1,00,000 active users in 300cities and 3,500 localities.Our users include owners,brokers and builders.
MethodologyApartment values andlistings form the basis ofthe MagicBricksPropIndex. These includemultistorey apartmentsand single units on plotteddevelopments, referred toas builder floors onMagicBricks.com.
The Index is structured insuch a way that individualproperties are aggregated
into respective localitieswhich in turn areweighted to theirrespective city, which inturn is weighted to theNational Index.Weightages for PropIndexare based on the supply ofproperties within thelocality/city. Based on thisstructure, PropIndex givesa realistic picture oftrends in price/supplyacross different propertymarkets in each city. Wehave used differentweightages for PriceMonitor/Rent Monitor.Therefore, read as a whole,PropIndex along withtables provided for PriceMonitor, Rent Monitor,Yield Monitor and CapitalValues. PropIndex 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 andlogical interpretations.
The National PropertyIndex (NPI) is indicative ofthe extent of activity aswell as price movementsacross cities and localitiesin the major cities activeon MagicBricks.com. The
index includes the top 11cities (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 somedata as tables and others as graphs. Between them, you will find how property markets haveperformed in the Oct-Dec 2011 quarter from many different perspectives – from a capitalappreciation perspective, from a rental/yield realization perspective and from a supply ofproperties perspective. Also understand what consumers want in the Demand Anaysis section.
We recommend that you evaluate the city report in its entirety and that will provide a roundedperspective of the performance of the property market within each city. Here are details of whatyou 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 aswell as the average capital appreciation/drop in various localities of the city in the quarter. Thecity index is the weighted average of the average rate per square foot in that locality and thesupply of properties from that locality. Premium localities (with higher average rate per squarefoot) as well as localities with higher supply of properties will have a bigger impact on theIndex. For example, if the supply of properties from a premium locality drops, that locality willend 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 willbe influenced by capital appreciation within the locality.
2. Price Monitor - This reflects the capital appreciation/drop within a locality. It is calculatedbasis a 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/drops. However, in a few select cases, we have observed that the average rate per square footmoves due to a change in mix of apartments within that locality (e.g. if the ratio of premiumapartments, which command a higher per square foot rate, changes over the quarter). In thesefew circumstances, the Price Monitor will, in turn, reflect this input. Such changes have beenexplained in the text of the City reports.
3. Rent Monitor - This reflects the rental appreciation/drop within a locality. It is calculatedbasis a movement in the “average rent per square foot” within that locality. By and large, the movement in the “average rent per square foot” reflects rentalappreciation/drops. However, in a few selected cases, we have observed that the average rentper square foot moves due to a change in mix of apartments within that locality (e.g. if the ratioof premium apartments, which command a higher per square foot rent, changes over thequarter). In these few circumstances, the Rent Monitor will, in turn, reflect this input. Suchchanges have been explained in the text of the City reports.
4. Yield Meter – Yield is the annual rate of return earned on property. Yield meter depicts thegross yield percentages across various localities. Gross yield is a ratio of average annual rentalvalue to the average capital value of the property.
5. Capital Value Tables (given in Annexures) - This shows the actual range of prices withinwhich properties were available in each locality. Prices are shown in rupees per square footbasis; these are the prevailing rates for properties in each locality.
6. Demand Analysis - This analysis of consumer demand is based on searches and requirementsthat users have performed on Magicbricks.com. The top localities by demand gives an insightinto consumers peferences. The demand data has been used to arrive at various aspects ofconsumer requirements including Budget-wise Analysis, Property type Analysis and BHKConfiguration Analysis.
GLOSSARY & DEFINITIONS
OCT-DEC 2011
The National Property Index(NPI) went up by over 5% in thequarter Oct-Dec 2011, compared toJul-Sep 2011.
The NPI is a weighted average ofsupply and prices across cities. Ofthe 11 cities covered in the IndiaApartment Index, 8 have risen atthe city level. These includeDelhi, Hyderabad, Noida,Mumbai, Pune, Chennai, Gurgaonand Ghaziabad. In NCR area,Noida and Gurgaon tops the chartby registering 19% and 11%increase, respectively. Followed byMumbai (9%), Hyderabad (6%),Delhi, Chennai, Pune andGhaziabad (2-3%). Kolkata,Bangalore and Ahmedabadshowed stable index values.
The NPI is a weighted average ofcity indices. Mumbai, Gurgaon,Pune and Bangalore were themajor contributors to the NPI.The MagicBricks Propindex isbased on dynamic data minedfrom the portal to show the levelsof supply and the type of
property listed in each locality.These are cleaned with complexalgorithms to remove outliers andarrive at the index values forlocality, city and national levels.
The index is impacted by thenumber and the average price ofproperties in each locality and thelocality’s weightage in the city.This is based on its contributionto the city’s property databank.
Since the listings on the websiteare by end users and marketplayers, the index is based on amix of newly developing andestablished localities as well asnew and old construction.
The composite index value of acity draws from the changingindex values of differentlocalities. Localities that weremore active than others cancontribute significantly to theindex values of that city.
This index is reflective of trendsacross multistorey and singlefloor apartments and residentialhouses.
n National Property Index(NPI) rose over 5%
n Ready-to-move-in propertiesregistered maximum userinterest
n Properties in proximity towork place continued todrive demand
n Maximum demandregistered in the budgetrange of Rs 30-60 lakh
IN THIS REPORT:
National Property Index...............1Delhi.........................................4Gurgaon....................................7Noida & Ghaziabad................... 10Mumbai....................................14Pune........................................17Ahmedabad..............................20Kolkata...........,........................ 23Chennai....................................26Hyderabad................................29Bangalore.................................32Annexures.................................35
NATIONAL PROPERTY INDEX (NPI)
VOL 1, ISSUE 3; OCT-DEC, FY 2011-12
OCT-DEC 2011
Source: Magicbricks.com
NATIONAL PROPERTY INDEX
Sales volumes dipped across citiesin the Oct-Dec 2011 quarter. Post-Diwali sales remained sluggish onthe back of a weak globaleconomy and high domestic homeloan interest rates.
Developers started launchingsmaller phases as weaker bankloan regime for the real estateindustry put working capitalpressure on the industry.
In majority of the cities, investorshave been selling units to endusers as soon as the project hitsthe next phase. Maximum demandfor projects has shifted toproperty in the ready-to- move-inor close to possession stages,across cities.
However, demand remained high.Consumers have been activelylooking for the right property.When it comes to making a buydecision, however, many areadopting a wait-and-watch policy.Cities and localities that haveproperty in the ready-to-move-inphase have registered growth.
These have pushed up indexvalues in these cities. In someinstances, where lower pricedproperty has been launchedfurther away from the city alongtransport corridors, index valueshave fallen, though the marketdemand remains robust.
Inner city areas underredevelopment have been indemand across most cities andhave impacted the city.Redevelopment has been a featureof most cities in areas withplotted developments.
Where one locality hassuccumbed to local pressures,such as the land issue in Noida,neighbouring areas with similarprofile have benefitted. This is a
clear indication of robust demandwhich will seek new options.
The Ahmedabad Index valuedropped 0.12%. This is primarilyattributed to availability of lowbase price property developmentsalong the SG Highway. Increase inaverage price of properties inover 75% of the localities arrestedthe free fall of index.
The Bangalore Index rose
VOL 1, ISSUE 3; OCT-DEC, FY 2011-122
Source: Magicbricks.com
Source: Magicbricks.com
marginally by 0.43%. In theBangalore real estate market,property developments in andaround the IT corridor continuedto witness user interest. South andEast Bangalore registered themaximum end-user interest.However, influx of properties atlow base price in Electronic Cityarrested the rise in the City Index.In North Bangalore, inadequatephysical infrastructure in certainareas impacted the indexnegatively.
The Chennai Index posted 3%increase. The residential marketacross southern suburbs ofChennai remained up. This isprimarily attributed to twoeconomic drivers in the region-information technology andmanufacturing. Central Chennaicontinued to be the most preferredresidential space, owing toavailability of all physical andsocial infrastructure facilities.
The Delhi Index rose by 3%. Thecity registered increase in averagecapital values in majority of areasacross the city. Localities such asDwarka, Safdarjung Enclave,Paschim Vihar, Hauz Khas andPanchsheel Enclave were themajor contributors to increase inIndex value.
The Ghaziabad Index rose by 2%.Drop in average property prices inareas such as Vaishali andBhopura, due to influx ofproperties at low base price andprofit booking by early investors,impacted the index valueadversely. However, small increaseregistered in average capitalvalues in localities with weightageover 75% managed to hold theindex up.
The Gurgaon Index rose by 11%.Increase in asking values in areassuch as Sohna Road, DLF Phase Vand Golf Course Road impactedthe index significantly.Availability of premiumproperties from reputeddevelopers with lifestyle featuresat ready-to-move-in stage drove theaverage property values up.
The Hyderabad Index value roseby 6%. Residential developmentaround IT hubs such as Kondapur,Gachibowli, Madhapur andMiyapur continued to impact theindex value positively. This isprimarily attributed to persistentuser interest in these areas, owingto good connectivity to the workplace. Planned infrastructuredevelopments such as completionof Outer Ring Road (ORR) areexpected to further boost growthin the city.
The Kolkata Index valueremained stable. Over 60% oflocalities in the city impacted theindex adversely. However, increasein average capital values alongwith the increase in weightageover previous quarter indeveloping areas such as EMBypass and Garia kept the indexunchanged.
The Noida Index value rose by19%. This is primarily attributedto increase in average capitalvalues of property across the city.Secondly, over 70% of localitiesimpacted the index positively. Theongoing land acquisition issuealong Noida Extension has largelybenefited residential developmentin the rest of the city. This resultedin significant increase in indexvalue.
The Pune Index value rose by 3%.Real estate development along theEastern and Western Pune stretchcontinued to push maximum realestate activity. Significant increasein average capital values andnumber of listings in areas suchas Kharadi, Viman Nagar andWagholi, impacted the indexpositively and kept the index valueup.
The Mumbai Index value rose by9%. Traditional localities such asChembur, Kandivali, Malad,Andheri East, Parel and Worliwere the major contributors to theincrease in index value. Theseareas registered increase inaverage capital values as well asincrease in number of listings inthe quarter Oct-Dec 2011.
TOP YIELD GROSSERS
Rental yield is a factor of the changes inrental values locality-wise vis-a-vis thechanges in capital values. Given beloware the top yield-grossing localities ineach city
Locality Gross yield
Kolkata, EM Bypass 5.87%
Bangalore, Electronic City 5.82%
Chennai, OMR 4.68%
Hyderabad, Kondapur 4.58%
Mumbai, Bandra East 4.27%
Pune, Viman Nagar 3.60%
Ahmedabad, Vejalpur 3.41%
Ghaziabad, Indirapuram 3.35%
Noida, Sector-50 3.29%
Gurgaon, Sushant Lok-I 2.89%
Delhi, Vasundhara Enclave 2.56%
CAPITAL GAINS
The table given below indicates maximum increase in capital values ineach city
Locality % Change
Noida, Sector-45 19%
Bangalore, Koramangala 18%
Delhi, Saket 16%
Chennai, Perungudi 15%
Mumbai, Bandra West 15%
Kolkata, EM Bypass 15%
Gurgaon, Sector-67 13%
Hyderabad, Uppal 13%
Ahmedabad, Bodakdev 11%
Pune, Wadgaon Sheri 6%
Ghaziabad, Vasundhara 5%
VOL 1, ISSUE 3; OCT-DEC, FY 2011-123
Source: M
agicbricks.com
AHMEDABAD 20VOL 1, ISSUE 3; OCT-DEC, FY 2011-12
CITY PROPERTY INDEX
The Ahmedabad Property Indexremained stable, unlike the NPIthat rose by over 5% in the Oct–Dec 2011 quarter as comparedto the Jul-Sep 2011 quarter.
The Price Monitor dropped 1% inline with the City Property Index.Availability of low pricedproperties in projects spread over50 acres along the SG Highwayand nominal drop registered inaverage property values in areassuch as Gandhi Nagar andPrahlad Nagar tilted the pricemonitor downwards.
The MagicBricks Yield Meterranged from 2.87-3.60%. Vejalpurcontinued to post the maximumyield quarter over quarter.Property in Bodakdev continuedto fetch the lowest return onaccount of rising capital valuesand stable rental values.
PRICE MONITORThe Price Monitor indicates thatprices rose in majority oflocalities across the city by 2-6%.Average capital values ofmultistorey apartments in welldeveloped localities such asBodakdev, Vastrapur and Gurukulwitnessed nominal increase invalues. On the other hand,relatively new developing areassuch as Bopal and Vejalpur tooexhibited a similar trend.
According to Jitendra Soni ofHarshil Estate, availability of
large number of options and lowabsorption rates are some of thekey reasons for this change invalues during the period.
Satellite, one of the welldeveloped localities in WestAhmedabad, posted a small 2%increase in average capital values.Road widening and new roadconstruction activities led toimproved connectivity and roadinfrastructure facilities in town.This has impacted propertyvalues in the locality positively,said Lalit Panjabi of VirtualConsultants.
On the other hand, 1-4% drop incapital values was registered inPrahlad Nagar and Gandhi Nagar.Low transaction rate, slowconstruction pace, inadequate
PROPINDEX - AHMEDABAD QUICKSTATS
n Yield Meter: Yield ranges between2.87% to 3.60%
n Capital Values rose in 67% localities
n Rental Value rose in 14% localities
n PropIndex remained stable
n Price Monitor rose from 92 to 93
1%
Price Monitor indicates 1% increase in the average sale price
P R I C E M O N I T O R
AHMEDABAD21VOL 1, ISSUE 3; OCT-DEC, FY 2011-12
infrastructure facilities and highcapital values resulted indecreasing average capital valuesin Gandhi Nagar, said Raju Patelof Metro Real Estate. The localityhas excellent future prospects onaccount of an upcomingcommercial hub named “GujaratInternational Finance Tech-City”,which is expected to be completedby 2017.
Average capital values dropped by1% in Prahlad Nagar. There wasdemand for properties in thepremium category, said Raju.However, other categoriesregistered fall in demand
resulting in a small fall in values.
RENT MONITORRental values remained stable inmajority of the localities acrossthe city. According to ChanderKant Patel of Alaukik Properties,high asking rental values in welldeveloped localities such asBodakdev and Satellite kept therental values relatively stableduring the period Oct-Dec 2011.High rental values also forcedsome consumers to look foraffordable options in adjoiningareas such as Ambavadi, which is
available at relatively lower rentalvalues, added Patel.
Other localities such as Vastrapur,Vejalpur and Gurukul exhibited asimilar rental value trend. Fall inNRI investment in the real estatemarket, availability of largenumber of ready-to-move-inapartments in new developmentsand weak consumer sentimentsare responsible for stable averagerental values in these areas,Upendra Patel of Uma EstateConsultancy said.
The only locality which showed asmall increase of 5% in rentalvalue is Drivein Road. Rentalvalues of premium apartmentsclocked an increase while valuesof other type of propertiesremained stable, according to InsaSyed of New Gujarat Properties.
In Prahlad Nagar, rental valuesdropped by 4%. Drop in rental
RENT MONITOR
Rent Price Percentage Change
OCT-DEC 2011
n Ahmedabad index fell by0.12%
n West Ahmedabad remained themost active real estate marketin the region
n High rental values in welldeveloped areas registeredrental demand in relativelylower priced areas
n Close to 50% of the propertydemand comes in the budgetrange of Rs 30-60 lakh
Y I E L D M E T E Rn Vejalpur continued to post highest gross
yield quarter over quarter owing toaffordability and connectivity to citycenter
n Bodakdev posted lowest gross yield,stable rental values and rising capitalvalues pushed the yield below 3%during the Oct-Dec 2011 period
values is primarily in thepremium category. Availability ofa large number of options isanother important factorresulting in drop in average rentalvalues, added Upendra.
DEMAND ANALYSISIn the Ahmedabad real estatemarket, the western region iswitnessing the maximum realestate development across the city.Availability of physical and socialinfrastructure and modernlifestyle facilities and amenties
made this region a preferredresidential locality.
Development of commercialoffices, malls and shoppingcomplexes along SG Highway andSatellite is another importantreason for enhanced demand inthis region. Increasinglyconsumers are opting forresidential property in proximityto their workplace andentertainment hubs.
Budget Wise AnalysisThe Rs 30-60 lakh category was themost dominant by demand in thecity, with approximately 50% ofconsumers showing willingness tobuy property within this budget.Residential property in even lowerbudgets of Rs 5-30 lakh tooremained in high demand with
23% of consumers seekingproperty in this budget range.The demand for premiumproperty worth over Rs 60 lakhseems lower than the budgetranges. About 17% are willing tospend upto Rs 1 crore for aproperty. Only 9% are willing tospend between Rs 1-2 crore. Aneven smaller 4% is looking forproperty worth over Rs 2 crore.
This matches the supply patternof apartments, which is largely inthe upto Rs 1 crore category.
Property Type AnalysisMultistorey apartments andresidential houses are the mostpreferred category acrossproperty types. However,multistorey apartments hadmarginally higher demand in
comparison to residential houses.Residential plots comes at thirdplace with 17% demand. Singlefloor units developed on smallplotted areas by local buildersregistered 11% demand.
There is demand acrosscategories, but the bulk of thedemand for apartments is drivenby the working population thatprefer new gated communities inproximity to the workplace andentertainment hubs. Most of thenew workers coming into the cityare preferring to stay close to thecommercial hubs. Old city areasthat are congested and do not havelifestyle features are not indemand.
BHK Configuration AnalysisAhmedabad’s changing profile isclear from the demand pattern.
A city that traditionally sought 3 BHK apartments is fast movingtowards smaller 2 BHK units innew developing localities. As aresult this demand, at 31%, hasovertaken the 28% demand forlarger 3 BHK units.
In fact, a significant 18% usersalso sought 1 BHK apartments.This typically comes fromstudents, single workers andyoung working professionals.
Premium demand for 4 and 5 BHKstill exists and accounts for 22% ofthe demand. This seems to fall inthe Rs 60 lakh to over Rs 2 croreper unit categories.
All categories are active and arein demand. If supply matchesuser expectations, this city willremain active in the next quarter.
AHMEDABAD 22VOL 1, ISSUE 3; OCT-DEC, FY 2011-12
Property type analysis
Single Floor Unit
Multistorey Apartment
Residential House
Residential Plot
11%
39%33%
17%
Budget Wise Analysis 50
40
30
20
10
05-30 30-60 60-100 1.0-2.0 2.0lakh lakh lakh crore crore
& above
23%
48%
17%
9% 4%
BHK configuration 5 BHK
4 BHK
3 BHK
2 BHK
1 BHK
0 10 20 30 40
8%
14%
28%
31%
18%
Top ten searchedlocalitiesl Satellite
l Prahlad Nagar
l Bopal
l Vastrapur
l Bodakdev
l SG Highway
l Thaltej
l Gurukul
l Paldi
l CG Road
aNNexuRes
CAPITAL VALUES – LOCALITY WISE
Average Residential Apartment Prices
Anand Nagar 4050 to 4700
Bodakdev 4200 to 5000
Bopal 2750 to 3100
Drive In Road 3500 to 4250
Gandhi Nagar 2400 to 2800
Gota 2550 to 2750
Gurukul 3550 to 4000
Jagatpur 2750 to 3000
Maninagar West 2550 to 2800
Maninagar 2700 to 3150
Motera 2450 to 2750
Naranpura 3300 to 4200
Paldi 3600 to 4250
Prahlad Nagar 3700 to 4450
Ramdev Nagar 4150 to 4650
Satellite 3950 to 4700
Thaltej 3750 to 4600
Vastrapur 3700 to 4300
Vejalpur 2750 to 3250
Locality Capital Values (Rs/Sq feet)
Locality Capital Values (Rs/Sq feet)
AHMEDABAD
VOL 1, ISSUE 3; OCT-DEC, FY 2011-1241 AHMEDABAD
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.
CONTACT US
l Post your feedback to -
propindex @timesgroup.com
l Join our discussion forum at -
openhouse.magicbricks.com
l For business enquiries -
PROPINDEX TEAM
l Content & Research: e Jayashree
Kurup, Dipti Tandon, Rishab Jain,
Puneet Kukreja, atul Gupta
l Layout Design: Harsha Khattar
l Cover Page Design: Raghav Krishnan &
Rahul Nair
l Operations Management: Girish Bindal
VOL 1, ISSUE 3; OCT-DEC, FY 2011-12VOL 1, ISSUE 3; OCT-DEC, FY 2011-12
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