The Indian real estate sector is at crossroads today. The real estate markets across all the major cities have beenstagnant with low transaction activity. The market is saddled with large unsold inventory which at current rateof sales velocity will take more than four years to clear. Amidst this environment, there have been repeated callsfor reduction in the prices of residential assets. Market watchers believe that only rationalization in prices canbreak this logjam and lead to more transaction activity.

But what are the current price levels? And how much room does a developer have to reduce prices? In ourcurrent edition of PropIndex (Jul-Sep 2015), we look at the price trends across major cities. As different budgetsegments have unique demand-supply scenario, we’ve divided the capital value (Rs/sq ft) range in each city intoeight budget segments. The trend analysis has been done on a Q-on-Q basis for a two year period betweenJul-Sep 2013 and Jul-Sep 2015.

Our analysis shows that prices across different budget segments in each city have remained stagnant over theevaluation period. Comparing the cities basis their weighted average price movement over the two year periodshows that except for Pune and Chennai, none of the cities have even managed to get a double digit growth.Even in case of these two cities, the price increment has been 11.8% and 10.8%, respectively. Delhi was theworst performer with a net decline of 14.8%. Big mid-segment real estate markets like Bengaluru and Noidasaw 7.6% and 3.2% price increment. However, when these marginal increments in prices are adjusted forinflation, we find that the net movement in prices is either zero or even negative.

This stagnation in the market is reflected in the Jul-Sep 2015 National PropIndex which remained at the samelevel as the previous quarter. In case of individual cities, Bengaluru again witnessed the maximum appreciationof 4% while Delhi declined further by 5%. Western cities of Pune, Mumbai and Ahmedabad all witnessedpositive movement in their city indices.

Today, the developers understand the requirement of easing acquisition cost for consumers. Towards this end,they have come up with various attractive payment plans like subvention schemes where EMI till possession ispaid by the developer or possession linked payment plans. Apart from this, they are also offering freebies anddiscounts. When the financial saving from these payment plans or freebies/discounts are factored, it translatesinto 5%-15% saving to the consumer. With RBI easing policy rates and attendant reduction in home loan rates,the developer community expects that the combination of lower interest rates and freebies/discounts will getthe fence sitters to take the leap.

Therefore, in short to medium term, we do not expect developers to take the drastic step of upfront reduction incapital values. They are more likely to persist with discount and freebies to pass lower cost to consumers. Anupfront reduction in prices may send strong negative signals and have a domino effect. Consumers may start tohold their purchase decision expecting prices to fall further.

These are changing times and we would love to hear from you. Do write to us at Sudhir.pai@timesgroup.comand share yours views on this report and how we could make PropIndex even better.

FOREWORD

Sudhir PaiCEO, Magicbricks.com

Magicbricks PropIndex

Magicbricks PropIndexis a tool whichempowers propertyseekers and investorswith detailedinformation on themovement of residentialapartment prices andsupply of properties inIndia. No credibleproperty index can be afunction of direct valuesas the changes aregoverned by multiplefactors.

Magicbricks PropIndexhas taken this realityinto account andproduced an index basedon listing of apartmentsand their capital andrental values on thewebsite.

“Magicbricks has over12,00,000 activeproperties posted bymore than 2.5 Lac activeusers in 600+ cities and17,000+ localities. Ourusers include owners,agents and developers.”

Methodology

Apartment values arebased on listings onMagicbricks. Theseinclude multi-storeyapartments and singleunits on plotteddevelopments, referredto as builder floors onMagicbricks.com.

The Index is structuredin such a way thatindividual properties

are aggregated into theirrespective cities andthen to the NationalIndex. Weightages forPropIndex are based onthe supply of propertieswithin the locality/city.Based on this structure,PropIndex gives arealistic picture oftrends in price/supplyacross different propertymarkets in each city. Wehave used differentweightages for ListedPrice Monitor/RentMonitor. Therefore, readas a whole, PropIndexalong with tablesprovided for Listed PriceMonitor, Rent Monitor,Yield Monitor andCapital Values, gives anexcellent perspective ofthe property marketperformance in thequarter.

While listing and itsvalues/supply provide alevel of understandingof the market, there aremeticulous data checksto prevent aberrationscreeping in the Index.These are based onstatistical calculations,industry inputs andlogical interpretations.

The National PropertyIndex (NPI) is indicativeof the extent of activityas well as pricemovements across citiesand localities in themajor cities active onMagicbricks.com. Theindex includes the top11 cities (these have

been chosen based ontheir activity levels) andhas an individual cityreport for each of thesecities. While the NPI andits movements are ofinterest to the expertcommunity of bankers,builders and investors,the PropIndex has alsotaken care to explain thenuances of indexmovements at thelocality level that wouldhelp the huge base ofMagicbricks.comconsumers.

Insights into consumerdemand have beengathered throughanalysis of searchinformation on the site.This helps understandthe best localities bydemand, the type andconfiguration of units aswell as the budget-wisepreferences.

The PropIndex is theresult of meticulousresearch at the localitylevel and throughdetailed discussionswith experts atMagicbricks.com’soffline and onlineinitiatives.

The Indian real estatemarket is dynamic andthe PropIndex reflectsthose changes. Since it isderived from a dynamicdatabase, additions anddeletions of localitieshappen as a function ofmarket dynamics.

METHODOLOGY

There is a wealth of information within these pages. For better readability, we have presented some data as tables and others asgraphs. Between them, you will find how property markets have performed in the Apr-Jun 2015 quarter from differentperspectives – from that of capital appreciation, from a rental/yield realisation perspective and from a supply standpoint. DemandAnalysis section also 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 ofthe 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 capitalappreciation/drop in various localities of the city in the quarter. The City Index is the weighted average of the average rate persquare foot in that locality and the supply of properties from that locality. Premium localities (with higher average rate persquare foot) as well as localities with higher supply of properties will have a bigger impact on the Index. For example, if thesupply of properties from a premium locality drops, that locality will end up having a lower weightage in the Index which inturn will push the Index downwards (and vice-versa). On the other hand, supply of properties remaining unchanged, theIndex 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 ofmovement in the “average rate per square foot” within that locality. By and large, the movement in the “average rate persquare foot” reflects capital appreciation/drop. However, in a few select cases, we have observed that the average rate persquare 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 Monitorwill, 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” reflectsrental appreciation/drop. However, in a few select cases, we have observed that the average rent per square foot moves due toa change in the mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher persquare foot rent, changes over the quarter). 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. The Yield Meter depicts the gross yield percentagesacross 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 ineach locality in the quarter. Prices are shown in Rupees per square foot basis, these are the prevailing rates for properties ineach locality.

6. Price Trend Analysis – This analysis of looks at distribution of real estate assets on the basis of capital value (Rs/sq ft). We have grouped the city localities into various budget segments on the basis of their capital values. We then evaluate thehistoric price trend for these budget segments over a two year period from Jul-Sep 2013 - Jul-Sep 2015.

7. Editorial Speak – PropIndex has gone from strength to strength – adding more analytics, insights and diverse views inevery edition. To enhance the insights provided by our data, PropIndex now includes city perspectives from editors of theTimes Property.

GLOSSARY & DEFINITIONS

NOTES

JUL-SEP 2015

In line with the general lack of activity inthe residential real estate market, theNational Property Index has also

remained stagnant over the previousquarter. This is in continuation of the generaltrend of inactivity observed in the marketover the last many quarters (including thecurrent period between Jul-Aug 2015).

NPI is the weighted average of supply andcapital values across 11 cities in India.

Regionally, North India comprising ofDelhi, Noida/Greater Noida, Ghaziabad andGurgaon, saw an average drop in the Indexvalues. Compared to this, while the Index inthe South Indian cities on an averageremained at the same level as in the lastquarter, West India saw an average rise of2% in the Index values. Kolkata in the eastalso saw the Index values remaining at thesame level as the previous quarter.

The movement in Index in the quarter canbe attributed to an average 13% increase insupply and partly due to six out of the elevencities having more than 50% localities with

price increment. However, only one city sawsome positive movement in the PriceMonitor while others either stayed at thesame level or witnessed an overall dip in theprice levels.

Bengaluru again emerged as the city withmaximum increase with the Index havinggrown by 4% in the evaluation quarter. Thiswas followed by Mumbai with 3% increaseand Gurgaon with 2% increase. The largestdrop in the City Index was again witnessedin Delhi with the Index value falling by 5%.Except for Gurgaon, cities in the North eitherwitnessed a drop in Index values orremained at the same level as in the lastquarter. Ahmedabad City Index grew by 1%as compared to the last quarter.

While the Reserve Bank of India (RBI)lowered the interest rates, leading to bankspassing on the benefit to consumers in termsof lower home loan rates, the same mightnot be sufficient enough to address the issueof low transaction volumes and largeinventory pile-up. The festive season and theassociated discounts and freebies given bydevelopers, along with lower interest rates

may have some positive impact on thetransaction activity on the ground.

Today, the biggest concern which theconsumer has in respect to the real estatemarket is lack of confidence in the developercommunity. With many projects having beendelayed and lack of clarity on theircompletion timelines, the consumer is varyof investing his money in the market,especially in new launches or under-construction projects.

Therefore, it is imperative on the part ofthe developer community to bringtransparency and take the consumers intoconfidence. While payment schemes like‘possession linked payment plan’ have beenoffered by several developers to allayconsumer fears of non-delivery and creditgetting stuck, more efforts are required toincrease the transaction momentum.

IN THIS REPORT:

National Property Index...............1Pune.........................................4Annexures.................................13

[National Property Index (NPI)]

VOL 5, ISSUE 2; JUL-SEP, FY 2015-16 propindex.magicbricks.com

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NATIONAL PROPERTY INDEX

The City Index for Ahmedabadexperienced an increment of 1% ascompared to the previous quarter. Anincrease in supply across all localities of thecity was observed. While some localitieswitnessed a double digit growth in supply, itis important to add, that most of them hadlow base numbers initially. Of the localitiesin the city, a substantial 43% of themwitnessed an increase in prices.

More than 65% localities in theBengaluru real estate market witnessed anincrease in the average capital values andthe overall supply also increased by 10%.Bengaluru City Index again saw maximumappreciation of 4% in the last quarter. TheEastern and South-East parts of Bengalurucomprising of Whitefield, Sarjapur Road andElectronic City, remainrd the largestcontributors to the supply in the city.

The Chennai City Index saw a marginalincrement of 1% in the Index values in thisquarter. There was an 11% increase in activelistings in the city with 57% of the localitieswitnessing positive movement in capitalvalues. Overall, the Price Monitor for the cityfell by 5% as drop in values was more thanwhat could be compensated by the priceincrement.

Delhi again witnessed a decline in theCity Index while the Listed Price Monitorremained at the same level. The Delhi City

Index fell by 5% for the Jul-Sep 2015quarter. As observed in the other cities,Delhi also saw an overall increase in theactive listings but only 30% of the localitiessaw any positive movement in the pricepoints. Except for a few localities remainingat the same price level as the previousquarter, most of the 69% of the balancelocalities saw a decline in capital values.

Ghaziabad saw a 2% decline in the Indexvalues accompanied by 2% decline in theCity Price Monitor as well. This was onaccount of 73% localities witnessing a dropin values. Indirapuram and Raj NagarExtension continued to be the dominantlocalities in terms of supply in theGhaziabad real estate market. Both thesetogether contributed more than 50% of thetotal supply in the market.

In Gurgaon, the supply of active listingsin the market increased marginally by 3%. A drop in the average capital values arrestedthe growth of the City Index. More than60% of the tracked localities witnessed adrop in the average capital values. SohnaRoad area remained the most preferredlocality in the city.

Unlike the previous quarter whereHyderabad had the second highestincrement in the Index Value, the cityrecorded a drop of 4% in the City IndexValues during this quarter. The western partof Hyderabad centered on Gachibowli and

comprised of other localities such asManikonda and Kondapur which continuedto be the top localities in terms of activelistings. On an average the localitieswitnessed less than 1% increase in property values. The city also saw anincrease in the overall number of activeproperty listings.

The City Index for Kolkata remainedstable over the past quarter. More than 55% of the localities saw a drop in capitalvalues while the remaining 39% of themsaw some increment. The localities on anaverage witnessed a 1% drop in capitalvalues. However, the City Price Indexremained stable over the quarter. Localitessuch as Rajarhat, EM Bypass and Gariacontinued to be the top localities in terms of availability of actively listed properties.

Mumbai noted the second highestincrement in the City Index after Bengaluru.While the City Index improved by 3%, theListed Price Monitor remained at the samelevel as the previous quarter. The localitiessaw an average increase of less than 1% incapital values with 62% localities having apositive movement. Most localities alongthe Western Expressway had an increment in capital values.

The City Index as well as the Listed PriceMonitor for Noida remained stable in theprevious quarter. While 53% of the localitieswitnessed a positive movement in capitalvalues, the overall increment in the city wasvery low. Noida Extension and sectorssituated along the Noida-Greater NoidaExpressway continued to be a source of themost active listings.

With 63% localities experiencing positivegrowth in capital values and an overallincrease in the number of active listings,Pune saw a 1% increase in the City Index.However, the Listed Price Monitor decreasedby 1%. Kharadi and Vimang Nagar in theNorth of the city together accounted formost of the listed properties. Apart fromthem, Wakad and Wagholi also contributedgreatly to the supply of the actively listedproperties in the Pune real estate market.

02VOL5, ISSUE 2; JUL-SEP, FY 2015-16propindex.magicbricks.com

-1%

INDIAN REAL ESTATE MARKET –FUTURE SCENARIO

The Indian real estate market has beenstagnant in terms of transaction and capitalvalue of real estate assets. The number of newproject launches has tapered drastically inmost cities compared to the earlier years. Withsmall exceptions, sale of units has fallenfurther from the decline of the previous year.

The fall in unit sales over the last few yearshas translated into a large inventory of unsoldstock. By one estimate, the total number ofunsold inventory exceeds 700,000 units andthe market will require more than four years toclear this. One of the main reasons for the fall

in new project launches is the level of unsoldinventory in the market.

Consequent to this logjam , the prices havealso remained stagnant over the last couple ofyears. To understand the price trends,Magicbricks analyzed the weighted averageprice for 11 cities in the PropIndex.

The weighted average price for a city takesinto account the average price of its localitiesand the weights assigned to each is the supply

in that locality. The analysis has been done fora two year period from Jul-Sep 2013 to Jul-Sep2015. For ease of comparison, cities have beendivided into segments having weightedaverage price greater than Rs 6,000 per sq ftand with prices lower than Rs 6,000 per sq ft.

As the graphs shows, the prices in the citieshave either seen very low rise or outright drop.In case of the four cities with weightedaverage price greater than Rs 6,000 per sq ft,Pune with 11.8% increase is the only city withany visible price movement.

Mumbai and Delhi have seen a drop invalues. In fact, Delhi witnessed the largestdrop amongst all cities. Gurgaon also remained

stagnant with negligent growth. Even in caseof Pune, when inflation is taken into account,the price increase is nullified.

In case of the other seven cities with aweighted average of less than Rs 6,000 per sqft, the story repeats itself. With 10.8% increaseduring the evaluation period, Chennai saw thehighest increment. With the exception ofGhaziabad, other cities also saw a marginalprice increase. The prices in Ghaziabad cityactually dropped by 6.6%.

Given the high inventory level and low salesvolume, the market needs to correct the prices.Our analysis shows the prices have beenstagnant for over two years now. When this isindexed to inflation, the values have dropped.

Short of announcing a cut in prices,developers have used innovative schemes tolower the acquisition cost. These vary fromattractive payment schemes to giving freebieslike modular kitchen and other white goods tooffering discounts or waiver on charges like carparking, club house etc. The developers arealso ready to offer up to 25% discount on thetotal cost in case it is a one time payment.

The impact of the schemes is such that priceshave already come down by 10%-20%. This isdemonstrated with an example. Let’s assume a1400 sq ft property costs Rs 60 lakh, Rs 4,286per sq ft in capital values. This comes with asubvention scheme where the developer paysthe EMI on the loan amount during theconstruction period. The EMI is transferred tothe consumer on possession. Assuming a loanamount of Rs 48 lakh (80% of the unit value),interest rate of 9.5% and a loan tenure of 25years, the EMI is Rs 41,937 per month.

The developer pays this EMI for theconstruction period of 24 months. The totalamount paid is slightly more than Rs 10 lakh.Simply put, the actual cost to the buyer is Rs 50 lakh, translating into a rate of Rs 3,567per sq ft, a discount of almost 17%.

Developers are expecting that freebies andattractive payment plans combined with therecent drop in home loan rates will help inreviving sales. Therefore, in short to mediumterms, developers are unlikely to have anyincentive in dropping the prices upfront.

03VOL5, ISSUE 2; JUL-SEP, FY 2015-16 propindex.magicbricks.com

Rising pollution in Indrayani river forces NGT to issuedirective to the Maharashtra Pollution Control Board

The proposed Pune Metro for Vanaz-Ramwadi corridorfeared to increase traffic congestion, reports say

Reliance Industries majorly delays work on Pune-Satara Road, toll diversion; gets pulled up by CAG

Pune makes its place in the list of 98 Smart Cities released by Centre

Pimpri Chinchwad, excluded from theSmart Cities list, takes up inclusiondemand with CM. Govt now plans tosend Pune and Pimpri Chinchwad asone entity for Smart Cities project

Builders cannot charge VAT on saleof flat after completion of project:Disputes redressal commission

No exemption from interest forhome buyers on delay in paymentof balance sale consideration tothe builder, commission ruled

PUNE 04VOL5, ISSUE 2; JUL-SEP, FY 2015-16propindex.magicbricks.com

PUNE REAL ESTATE IN PERSPECTIVE Q2 2015

As it happenedPUNE

HOT NOT

The City Index increased by 1% while the Listed Price Monitor declined by 1% as compared to last quarter

[CITY INDEX]The Pune City Index witnessed marginal increment in value in Jul-Sep 2015

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New PCMC Building Rule gives double FSI and relaxationin side margins for construction of small plots

Developer can’t cancel a registered agreementunilaterally, the disputes redressal commission ruled

All new development in Pune to comply with theGreen construction norms

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[PROPINDEX - PUNE]The City Index witnessed marginal gain for Jul-Sep 2015 quarter. There is an overall increase in the averagecapital values for 63% of localities across the city. But the Listed Price Monitor stayed declined by 1% ascompared to last quarter

l After Bengaluru, Pune is ‘the’ cheapestand largest residential real estate marketin India and its 587 localities cater to allsocioeconomic classes

l Pune city has a weighted average price of Rs 6,807 per sq ft, which is around 12% more than the city’s price from twoyears ago

l On a national affordability basis, Punemarket is slightly premium, withproperties under Rs 5,000 per sq ftforming only 15% of the total market

l Although the city provides plenty ofopportunities for the middle class and hasa whopping 55% of its properties in the

Rs 5,000-7,000 per sq ft segment, morethan 85% of these4 properties in themarket are available within Rs 1 crore.This makes it one of the cheapest marketsin India for its size. This is also muchcheaper when compared to the Delhi andMumbai regions

l The ongoing slowdown has had littleeffect on the supply of the city. Nosignificant restructuring was witnessedamong the residential propertiesavailable in various segments

l Changes in the sizes of individualsegments was restricted between therange of +3.4% to -2.4%. This is in stark

contrast to the trend observed in themarkets of NCR and Mumbai, where theaverage market sizes of various segmentsvaried by 15% to 20%

l This trend is also an indication of thestability in the market and of thecontinuation of sales, unlike the othermarkets, where price increases have comeat the cost of loss of sales

l On the property distribution front, themarket is quite fragmented and thebiggest individual contributors to thesupply of the city are Baner and Kharadi,which individually contribute to roughly5% of the city’s overall supply

[Key Takeaways]

Though a few air pockets were felt inthe city’s market, there seems to be asilver lining, thanks to the festive

season. The critical problem is the huge unsoldinventory, as was pointed out by a few realestate pundits. This festive season has broughta spurt, causing the inventory to move.

While the recent real estate reports for thefirst half of the year indicated dropping of salevolumes and consequent fall in the number ofnew launches, other surveys recorded a growthof the market during the same period.

The Magicbricks PropIndex suggests thatPune is among the five cities out of 11 whichwitnessed a positive movement in the CityIndex. The 3% increment during the Apr-Jun2015 quarter is the third highest afterBengaluru and Hyderabad. The report adds that77% localities experienced positive growth incapital values and there was an overall increase

in the number of active listings. Though thedemand for properties during the festiveseason will bring the much needed respite, therealty sector feels that a long-term strategyneeds to be in place so the push and pulls ofthe market do not affect the sector as hugely asit has this time around.

The IT and manufacturing sectors continueto grow at the same pace and momentum withareas like Hinjewadi still in demand. The needof the hour, is not to bank on the festive spurt.Better infrastructure including concretisation ofsuburban roads would be a help. The PuneMetro Rail project needs to kick-start and theBRTS project needs to be put on a fast track.People are still keen to relocate and settle inthis beautiful city. The only thing they ask isbetter amenities and quick connectivity.Flyways and underpasses are being constructedand road widening work is happening, but a lotneeds to be done to improve buyer confidence.

There is a school of thought which feelsthat supply should be properly realigned withdemand. Today, buyers are looking foraffordable prices, attractive deals and goodamenities before upgrading to a new home.They are looking at a macro level picture ratherthan a broad based one.

The fence-sitters need to be targeted withan additional push. More discounts andschemes in unsold inventory and under-construction projects would lure buyers. Themove by developers focusing on interestsubvention schemes to reduce interest burdenis a welcome move.

All in all, the festive season has broughtgood cheer. This momentum needs to continuein the coming months. Properties are movingand this is a good sign. We foresee a greatermomentum in the coming months. After all,the winter is just another season.

Festive season brings cheer

Diniar.patel@timesgroup.com

EDITORIAL

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[Residential distribution by capital value]

[PRICE TREND ANALYSIS]

[Major price segments: Q-on-Q trend]

l Pune region is majorly catering to the midsegment housing and a relatively narrowprice band of Rs 5,000-8,000 per sq ftholds more than 70% of the city’s supply.Properties in the below Rs 5,000 per sq ftsupply are confined only to 15% of thecity’s total supply

l Similar to the affordable segment, thepremium segment of the city with pricesabove Rs 5,000 per sq ft, provides only14.5% of its total supply

l It has been observed that more than one-third of the properties available inthe city are found in the Rs 6,000-7,000per sq ft price category

l Overall, 85.5% of the properties in Puneare within Rs 8,000 per sq ft budget andtheir share of the city’s supply hasremained unchanged for the last twoyears. This kind of stability has beenhardly witnessed anywhere else in thecountry and is an indication of thedemand–supply equilibrium achieved inthe city during the last two years

l This also indicates that the city has amuch better land availability situationcompared to other cities and hence,reduces the chances of sudden surges anddeclines in supply and demand forparticular price ranges

l Pune serves a variety of buyers, providingproperties in a wide range of Rs 2,500-17,000 per sq ft. The various pricesegments have witnessed significantvariations over the last two years, majorly

on account of new launches skewing theaverage prices in these segments

l Most visible increase was seen in theabove Rs 10,000 per sq ft range. The

prices increased from Rs 11,550 per sq ftto Rs 13,050 per sq ft, the second highestincrease of all segments on a percentagebasis, while being the highest on anabsolute basis

The city for the middle class

Strong price performance over steady absorptions

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l The adjacent heat map shows the localities of Pune indifferent colour shades depending upon the prevalentcapital value in the locality. A bright coloured localityindicates higher capital values while one with lessershade indicates relatively lower capital values

l The core of the city consists of old residential andcommercial areas with high density of development.While these localities also have high capital values, theprime suburban areas which captured the growth as thecity expanded have higher capital values. Koregaon Park,Kalyani Nagar, Ghorpadi, Yerwada, Aundh and Kothrudrepresent such prime suburban areas with high values

l While the city has grown radially, most of the growth wastowards West and North-Western direction. Hinjewadi isa large IT/ITeS cluster and a big demand driver for theresidential segment. Lot of development has taken placein the East and around Hinjewadi. Some like Baner andBalewadi have emerged as extended suburban areaswith relatively high capital values. Others like Wakadcater to the larger mid-segment demand

l Pimple Saudagar in North-West also evolved as a largemid-segment area. To the east are Kharadi and VimanNagar, extension of Kalyani Nagar, and are relativelyexpensive. Hadapasar is also a large office and residentiallocality with options in the mid-segment

affordability factor of the localities in thissegment has kept the prices in checkhere. Key localities include Talegaon,Chakan and Pirangut

l The highest price rise has been witnessedin the Rs 8,000-9,000 per sq ft range,where properties are now 13.25% costliercompared to two years ago. Primelocalities here include Aundh, Camp andBhusari Colony

l The major reason for this trend of priceincrease was the fact that over half thelocalities witnessed more than 10%increase in prices over the last two years.Of these, almost 40% of them witnessedprice increase of more than 20%

l Just 3% of the total localities in the wholemarket witnessed any fall in the prices.These localities on an average fell by 13%on the price front

l Price rise in various segments of themarket in the last two years have beenmore than 10% for all but two segments.Unlike peer Delhi, where prices fell acrosscategories, Pune failed to take any cuefrom the ongoing economic slowdown

and has been climbing up unhinged,similar to Mumbai

l The only surprise has been the less than1% growth over two years for the Rs 3,000-4,000 per sq ft range. The

Unabated price increases overall

[Major price segments - price increment]

PUNE 08VOL5, ISSUE 2; JUL-SEP, FY 2015-16propindex.magicbricks.com

[City - weighted average price trend]

l Unlike Mumbai and similar to its peercities in North India, Pune region hasdisplayed some seasonal variations overthe last two years

l Given the mid income housing profile ofthe properties in the city, freebies anddiscounts make an impact on the buyers.As a result, the city witnessed a

suppression of prices in the Jul-Sep 2015period of the year

l Besides the seasonal trend, what wasclearly visible was the linear rise of pricesover the last two years, ranging betweenquarterly changes of +0% to 3%. Theprices fell only once during this period,though the decline was of just 1%

lOn a yearly basis, the prices were seen tohave been rising consistently in the cityover the last two years, pushing up theprices by 7% and 5%, respectively for theprevious year and for this year. As a resultof this, Pune city has gained more than Rs 700 per sq ft over the prices from twoyears ago

Economic slowdown fails to make an impact

l There are 65 localities in Pune with prices above Rs 10,000 per sq ft,with the top contributor being Koregaon Park, which contributed23% of the segment’s supply, followed by Wanwadi at 16%. Thecostliest major locality in this budget range is Prabhat Road withaverage listing price of Rs 16,800 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited a 13% increase over the last two years, on accountof 10% and 22% price increases witnessed in Koregaon Park andWanwadi respectively

l The prices fell the most in Shivaji Nagar, where properties are nowavailable at only 27% less than the price they were available at twoyears ago

[Segment 1: [Rs 10,000 per sq ft & above]Ultra luxury continues to surprise

[PRICE MOVEMENT - KEY LOCALITIES]

PUNE09VOL5, ISSUE 2; JUL-SEP, FY 2015-16 propindex.magicbricks.com

l There are a 23 localities in Pune with prices in the range of Rs 9,000-10,000 per sq ft, with the top contributor in this segment beingKalyani Nagar, which contributed a whopping 42% of the segment’ssupply, followed by Kothrud at 25% and Lohegaon at 12%. Thecostliest major locality in this price range is Jogger's Park withaverage listing price of Rs 9,995 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited a 9% increase over the last two years. This was onaccount of 7% price increase witnessed in Kalyani Nagar

l The prices fell the most in Paud Road, where properties are nowavailable at only 2% less than the price they were available at twoyears ago

[Segment 2: Rs 9,000 - 10,000 per sq ft]Deference to market dynamics hits the upper middle class

l There are 55 localities in Pune with prices in the range of Rs 7,000-8,000 per sq ft. Baner is the biggest market in this price bracketwhere a substantial 37% of the supply originates. This was followedby localities such as Viman Nagar at 19% and Magarpatta at 17%.Rasta Peth is the costliest locality here with an average price of Rs 7,955 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited a 12% increase over the last two years on account ofprices in Baner rising by 12%

l In this segment prices fell the most in Rasta Peth locality, whereproperties are now available at 27% less than the price they wereavailable at two years ago

[Segment 4: Rs 7,000 - 7,999 per sq ft]Deference to market dynamics hits middle class – Part II

l There are 26 localities in Pune with prices in the range of Rs 8,000-9,000 per sq ft. Aundh is the biggest market in this pricebracket where a whopping 46% of the supply originates, followed byCamp at 12% and Bhusari Colony at 10%. Shivtirth Nagar is thecostliest locality here with an average price of Rs 8,995 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited a 13% increase over the last two years on account ofprices in most localities climbing by 10% or more

l In this segment the prices rose the least in the Camp area, whereproperties are now available at the same price as they wereavailable at two years ago

[Segment 3: Rs 8,000 - 8,999 per sq ft]The locality caters to varied budget segments

PUNE 10VOL5, ISSUE 2; JUL-SEP, FY 2015-16propindex.magicbricks.com

l There are 131 localities in Pune with prices in the range of Rs 6,000-7,000 per sq ft. Supply is fairly distributed in this price range. Kharadiis the biggest market in this price bracket where 13% of the supplyoriginates. Aditya Garden City is the costliest locality here with anaverage price of Rs 6,995 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited an increase of 12% over the last two years. This wasbecause most of the localities in this segment witnessed a priceincrease of 10% or more

l Within this budget range prices fell the most in Gahunje, whereproperties are now available at 3% less than the price they wereavailable at two years ago

[Segment 5: Rs 6,000 - 6,999 per sq ft]1Strong price performance for most localities

l There are 79 localities in Pune with prices in the range of Rs 4,000-5,000 per sq ft. Wagholi is the biggest market in this price bracketwhere more than 32% of the supply originates, followed by supply inUndri at 5%. Datta Nagar is the costliest locality here with anaverage price of Rs 4,995 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited an increase of 9.5% over the last two years onaccount of prices increasing in most of the localities in this range by10% or more

l The price increase in this budget segment was the least in Chikhali,where properties are now available at the same price as they wereavailable at two years ago

[Segment 7: Rs. 4,000 - 4,999 per sq ft]Affordable not so affordable anymore

l There are 32 localities in Pune with prices in the range of Rs 5,000-6,000 per sq ft. Supply is fairly distributed in this price range.Hadapsar is the biggest market in this bracket where 14% of thesupply originates. Chandan Nagar is the costliest locality here withan average price of Rs 5,975 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited an increase of 10.6% over the last two years onaccount of prices in Hadapsar rising by 18%

l The prices fell the most on the Mumbai-Pune Highway in thisbudget range. Properties in this area are now available at 22% lessthan the price they were available at two years ago

[Segment 6: Rs. 5,000 - 5,999 per sq ft]Very high price increases for key localities

PUNE11VOL5, ISSUE 2; JUL-SEP, FY 2015-16 propindex.magicbricks.com

[Price increment: top & bottom five localities ]The price level remain high

l The major localities of Pune witnessed price changes in the range of+29% to +1%. All these major localities in the city witnessed apositive price change in the last two years, of which, more than two-third witnessed a 10% or more price increase

l The top five localities in terms of price rise are fairly distributedacross the city with the locality at the top, Market Yard, havingwitnessed 21% increase. This was located in the south of the city

l Of the remaining localites at the top, Hadapsar and Sopan Baug arelocated in South-East. Viman Nagar is located in the North-Eastwhile Pimple Saudagar is located in North-West

l Only three prime localities witnessed a price rise of less than 5%.Except for Camp, Lohegaon and Kalyani Nagar, the other twolocalities – Moshi and Chakan - are located much farther from thecity, and have weighted average prices of Rs 4,360 per sq ft and Rs 3,295 per sq ft, respectively

l All localities closer to the city have prices above Rs 8,000 per sq ft.Surprisingly, all these are located in the East and South-East regions

l Of these, Lohegaon is close to the airport and saw a significant priceincrease over the last five years, but has seen its price growthsubsiding over the last two years

l There are 44 localities in Pune with prices in the range of Rs 3,000-4,000 per sq ft. Talegaon is the biggest market in this price bracketwhere 25% of the supply originates, followed by Chakan at 20% andPirangut at 11%. Bhekarai Nagar is the costliest locality here with anaverage price of Rs 3,975 per sq ft

l Overall, the weighted average price of the localities in this budgetrange exhibited an increase of just 0.5% over the last two yearsalthough individual localities witnessed price changes in the rangeof +20% to -6%

l The prices within this price bracket fell the most in Kanhe, whereproperties are now available at 6 % less than the price they wereavailable at two years ago

[Segment 8: Rs 3,000 - 3,999 per sq ft]Some relief to the super affordable segment

PUNE 12VOL5, ISSUE 2; JUL-SEP, FY 2015-16propindex.magicbricks.com

l Viman Nagar, Balewadi and Kharadi are localities that witnessed amarginal price rise in the past quarter. The demand-supply gap inViman Nagar ensured continuous increase in property prices. Risingdemand for commercial space in Kharadi is pushing the housingdemand from investors intending to earn rental income

l Areas such as Hadapsar, Wagholi, Baner and Magarpatta City saw noprice movement. Each of these areas have enough supply to cater tothe demand from varied budget segments. The demand is unendingwhile availability of large land parcels would ensure supply

l Due to poor social infrastructure, NIBM Road realty market iscurrently stagnated. Waste management and overflowing drains aresome serious concerns of the local residents

LISTED PRICE MONITOR

Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield

Viman Nagar 20.50 7,745 3.18%Kalyani Nagar 22.25 9,000 2.97%Magarpatta City 19.25 7,680 3.01%Kharadi 14.75 6,305 2.81%Wakad 14.00 6,220 2.70%Balewadi 13.75 6,740 2.45%NIBM Road 13.25 6,155 2.58%Baner 14.75 7,220 2.45%Hadapsar 15.25 5,800 3.16%Wagholi 10.25 4,475 2.75%

Y I E L D M E T E R

RENT MONITOR

l Pashan Sus Road is the area that witnessed maximum rise in rentalvalues by 7 per cent. Being the start of the academic year, demandfrom student population for rental accommodation pushed up theproperty prices. Wanwadi is another area that saw 5% price rise inrental values

l Marginal increase in rental values was noted in localities such asBaner, Balewadi and Koregaon Road. This rise in values was mainlydue to the stable job market and ensured demand from the rentalhome seekers.

l Hadapsar, Sinhagad Road and Pashan witnessed drop of upto 6% inrental values. A separate municipal corporation for Hadapsar isexpected to form which can improve social infrastructure here

-1%

l Viman Nagar, Magarpatta City and Hadapsar recorded the highestgross yield of over 3%. This is primarily due to high demand forrental accommodation as compared to outright purchase. Thisdemand is driven by the workforce in the IT sector

l Balewadi and Baner saw lowest returns of less than 2.5% due tolack of infrastructure, despite being within city limits

l Kalyani Nagar, Kharadi and Wagholi, close to the IT hubs, recordednearly 2.75% yield. Wagholi entered the top yield grossers due tolow base values vis-a-vis rental values

l Rental returns in NIBM Road also remained average (2.6%),showing that investors are still banking on the locality andgetting good returns despite lack of infrastructure

Ambegaon 4570 to 5850

Ambegaon Budruk 4640 to 5970

Aundh 8140 to 10360

Balewadi 6300 to 7540

Balewadi Phata 6410 to 7900

Baner 6630 to 8270

Baner - Pashan Link Road 6940 to 8340

Baner Gaon 6550 to 8130

Baner Road 6500 to 8110

Bavdhan 6110 to 7450

Bhugaon 5090 to 6250

Bhumkar Nagar 5370 to 6260

Bhusari Colony 7840 to 9440

Bibwewadi 6710 to 8540

Boat Club Road 14530 to 18840

BT Kawade Road 6020 to 7390

Camp 7460 to 9620

Chakan 3030 to 3770

Chandani Chowk 6090 to 7400

Chikhali 3900 to 4670

Chinchwad 5590 to 7080

Dhanori 4730 to 5790

Dhayari 4740 to 5940

Dighi 4130 to 5090

Erandwane 11280 to 14110

Hadapsar 5160 to 6950

Handewadi Road 4470 to 5330

Hinjewadi 5290 to 6440

Kalyani Nagar 8160 to 10520

Karve Nagar 8240 to 10690

Kaspate Vasti 5830 to 6830

Katraj 4960 to 6410

Katraj Kondhwa Road 4670 to 5830

Keshav Nagar 5160 to 6300

Kharadi 5870 to 7090

Kondhwa 4950 to 6250

Koregaon Park 10020 to 13200

Kothrud 8430 to 10840

Lohegaon 4400 to 5410

Magarpatta City 7100 to 8730

Manjri 4600 to 5640

Moshi 3990 to 5030

Mundhwa 5110 to 6590

Narhe 4300 to 5450

NIBM Annexe 5000 to 6260

NIBM Road 5710 to 6950

Pashan 6390 to 7780

Pashan-Sus Road 6230 to 7790

Pimple Gurav 5910 to 7070

Pimple Nilakh 6300 to 7540

Pimple Saudagar 6320 to 7370

Pirangut 3280 to 3950

Pisoli 4050 to 4790

Prabhat Road 15730 to 18730

Punawale 4890 to 5790

Rahatni 5510 to 6590

Ravet 5090 to 6170

Salunkhe Vihar 5980 to 7300

Sinhagad Road 5520 to 7130

Sopan Baug Society 9460 to 11870

Talegaon Dabhade 3440 to 4190

Tathawade 5490 to 6350

Thergaon 5550 to 6570

Tingre Nagar 4670 to 5990

Undri 4510 to 5590

Viman Nagar 7130 to 8850

Vishrantwadi 5510 to 7040

Wadgaon Sheri 5840 to 7450

Wagholi 4120 to 5110

Wagholi Nagar Road 4320 to 5210

Wakad 5820 to 6930

Warje 6010 to 7460

PUNE13VOL5, ISSUE 2; JUL-SEP, FY 2015-16 propindex.magicbricks.com

Capital Values – Locality WiseAverage Listed Residential Apartment Prices

Locality Capital Values (Rs/Sq feet)

Locality Capital Values (Rs/Sq feet)

PUNE

NOTES

VOL5, ISSUE 2; JUL-SEP, FY 2015-16propindex.magicbricks.com

D I S C L A I M E R

Every effort has been made to make this Index as complete and as accurate as possible. MagicBricks accepts no responsibility for inaccuracies inthe information/data contained in this book. It shall have neither liability nor responsibility to any person or entity with respect to any loss ordamage 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.

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