mumbai real estate by 99acres

8/17/2019 Mumbai Real Estate by 99acres

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InsiteJAN-MAR 2016

acres99India’s No.1 Property Portal

Mumbai



2 | MUMBAI acres99India’s No.1 Property Portal

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From Narasimha’s Desk

Mumbai vs. Other Cities

Union Budget 2016-17 in Focus

Mumbai SWOT Analysis

Capital and Rental Analysis – MMR

Capital and Rental Analysis – Navi Mumbai

Capital and Rental Analysis – Thane & Beyond

Supply Analysis

Annexures

Methodology

99acres Insite studies and analyses the top seven real

estate markets of India - Delhi NCR, Mumbai, Bangalore,

Pune, Chennai, Hyderabad and Kolkata. It captures the

quarterly capital trends and annual rental data for various

property types – apartments, land and builder oors.The report delves into the supply of residential inventory

in each city, basis property type, budget brackets, unit

conguration and construction status. The supply analysis

is a function of variations observed in the number of

listings posted on 99acres.com.




Indian real estate stands at the pinnacle of a turning

point. The Jan-Mar 2016 quarter has rearmed this as

the market has started moving away from shadows of

the slowdown that were looming over the sector in 2015.

The latest quarter marked the onset of a revival in demand

and prices across top metros.

The Union Budget 2016-17 has further fuelled the

recovery process by aligning large-scale funding towards

infrastructure, initiatives to promote aordable housing

and rise in realty investment via implementation of REITs.

The transition will be quicker if interest rates fall further

and if greater tax shields are made available for rst-time

home buyers.

Narasimha Jayakumar

Chief Business Ocer

99acres.com




NEW DELHI

KOLKATA

PUNE

HYDERABAD

Capital Values

Rental Values

Supply

Vashi1%

Andheri (East)2%

Malabar Hill1%

Mira Road-1%

Ghodbunder Road-1%

CHENNAI

BANGALORE

MUMBAI

Lower Parel0%

Kharghar0%

Chembur7%

Ulwe1%

* Capital values represent quarterly change

* Rental values represent yearly change

* Supply is basis properties listed on 99acres.com

Infra upgrades and focus

on affordable housing

buoys market sentiment




• Tax exemption of 100 per cent

for houses up to 30 sq mt in

metro cities and 60 sq mt in

other cities

• Funding of over Rs 5,000 crore

for 300 urban clusters planned

across the country under Shyama

Prasad Mukherji Rurban Mission

Reinforcement of Aordable Housing

Promotion of Real Estate Investment Trusts (REITS)

• Removal of Dividend

Distribution Tax (DDT) has

made REITs nancially viable

for investors

• The exemption would make

REITs a preferred form of

asset-backed investment,

oering prot and protection

Boost to Infrastructure & Other Developments

• Allocation of Rs 97,000 crore

for development of roads

to award 10,000 km of new

road projects in FY 2016-17

• Fund allocation of over

Rs 3,000 crore for 100 smart

cities by 2020, and over

Rs 4,000 crore for AMRUT

Initiatives for an Organised Industry

• Allocation of Rs 150 crore

for digitization of land

records to usher trans-

parency in the market

• Relaxation of FDI norms

to boost overseas

investments and promote

organised growth

Relief to Urban Dwellers

• HRA claim limit

increased from Rs24,000 to Rs 60,000

per annum

• Tax rebate of Rs

50,000 on interest ofloans up to Rs 35 lakh,

for rst-time buyers




• Localities in Navi

Mumbai and Thane

harvested maxi-

mum traction due

to aordability.

• State plans to

develop nearly six

lakh units under the aordable housing

scheme; developers buidling such

projects to get nancial support.

• As a part of infra development, a budget

of Rs 6.6 crore allocated for metro andmonorail expansion; development of

Mumbai Trans Harbour Link and other

road networks.

• Leads and con-

versions remained

low; daily property

registrations stood

at 30-50 cases only.

• Only 40,000

new housing units

launched in Mumbai in FY 2015-16, a 35

per cent drop YoY.

• Thane Municipal Corporation proposed

a 10 per cent hike in property tax.

• Developers deferred new project

launches due to uncertainty looming

over Mumbai development plan 2034.

• Absorption in

the luxury segmentis under pressure

due to high price

points and limited

buyer base.

• Two-third of

Mumbai’s unsold inventory is priced

over Rs 1crore and above.

• Despite low transaction volume, it is

dicult for developers to cut down

prices due to high construction costs.

• Delayed land approvals might hinder the

mission of constructing 5 lakh aordable

homes in Mumbai by 2019.

• The city is wit-

nessing numer-ous private equity

investors focussing

on residential and

oce projects.

• In a bid to fast

track stalled infrastructure projects, the

state oered incentives to owners in

Thane to acquire land parcels.

• Low-budget housing units, measuringaround 500 sq ft and priced around Rs

20 lakh, in suburbs such as Bhiwandi,

Neral, Badlapur and Palghar

garnered interest from end users.

Strength Weakness

Opportunity Threat




% C

h a n g e

6

Chandivali

Colaba

Mira Bhayandar

Powai Mira Road

2

4

0

12

14

16

18

8

10

Locality

% C

h a n g e

3

Chembur Santacruz (West)

Colaba

Breach Candy

Powai

1

2

0

6

7

8

9

4

5

Locality

• More than 40 per cent of the localities in

MMR recorded a positive trend in capital

values. Those in central suburbs and

Andheri-Dahisar region were the major

contributors towards this growth.

• Multiple yovers, proposed lengthening

of the Santacruz-Chembur Link Road

(SCLR) and progress on Chembur-Wadala

monorail resulted in a signicant rise of

seven per cent in average capital values of

Chembur in the last two quarters.

• The SCLR also had an impact on the ‘ask’

rates in Santacruz West, pushing them up

to nearly Rs 39,000 per sq ft from almost

Rs 36,000 per sq ft in Oct-Dec 2015.

• Work on multiple metro lines boosted

capital prices in areas like Gokuldham,

Malad West, Andheri East and Borivali.

• The rental market of MMR registered a

YoY growth of two per cent (Jan-Mar 2016

over Jan-Mar 2015).

• Localities with rental values lower thanRs 50,000 per month made it to the

list of best performing regions. Central

suburbs such as Chandivali and Powai

topped the rental charts and registered

a yearly rise of 13 per cent and

12 per cent, respectively.

• A ordability drove demand in Mira

Road and Mira-Bhayandar Road. These

locations recorded an upward trend of

10 per cent each, YoY.

• Leasing activity in Andheri and Bandra

continued with the same gusto and these

localities noted a yearly increase of four

per cent each in average rental values.

Capital Analysis Rental Analysis

APARTMENTS APARTMENTS

* Rental values represent yearly change* Capital values represent quarterly change




• Navi Mumbai has gradually lost its USP of

being an aordable alternative to Mumbai

with prices doubling in the last few years.

The minor uctuations in the residential

capital graph could be attributed to

market dynamics.

• Capital growth in the zone remainedstagnant with the highest grossers

clocking a rise of just 2-3 per cent in Jan-

Mar 2016 against Oct-Dec 2015.

• Aordable locations such as Khandeshwar

and Dronagiri recorded capital growth of

three per cent each in property prices.

• A few transactions that took place in

projects by established developers led a

rise in capital values across prime areas

such as Palm Beach and Seawoods. Both

the localities recorded a rise of two per

cent each during Jan-Mar 2016 against

the last quarter of 2015.

• Unlike the capital market, which remained

under pressure, the rental market in Navi

Mumbai showed some promise. Localities

away from the city centre, oering cost-

eective rental options, witnessed higher

demand and posted some yearly growth.

• Landlords have been exploiting thespeculation around the Navi Mumbai

airport to quote high rents for quite some

time now. However, the market seems

to have stagnated, at least in the central

parts of the sub-city.

• Rentals in New Panvel posted a yearly

hike of 15 per cent in the last one year.

Demand has surged due to aordable

rental values in the area.

• Rental markets of Kharghar, Taloja

and Kamothe also picked up steam on

the back of relative aordability and

registered a 5-12 per cent hike YoY.

% C

h a n g e

6

New Panvel

Palm Beach Taloja

Kharghar

Kamothe

2

4

0

12

14

16

18

8

10

Locality

% C

h a n g e

Locality

Khandeshwar

Dronagiri

Koperkhairane

Palm Beach

Seawoods

1

0

3

4

2







• Infrastructure upgrades instilled signs of

revival in Thane and the housing market

here has started looking up.

• Some of the proposed infra projects

include the fourth phase of the metro and

an underground tunnel from Manpada to

Borivali via Ghondbunder Road.• Improving connectivity surged the

location attrativeness index of localities

along Ghodbunder Road. Patlipada and

Panch Pakhadi recorded a growth of six

and ve per cent, respectively in Jan-Mar

2016 over Oct-Dec 2015.

• Thane continued to garner steam in the

aordable and mid housing segments.

Both Kalyan East and West recordedrobust demand as values hovered below

Rs 6,000 per sq ft. Capital values in the

locations grew by ve per cent each.

• Renting a home in Thane has become

more nancially viable due to soaring

capital values. The resultant is a thriving

rental market, which has recorded a rise

of four per cent in average values YoY.

• Relative aordability, proposed infra

projects and presence of well-endowedprojects have enhanced Thane’s rental

landscape in the last few years.

• Similar to the capital market, locations

along Ghodbunder Road performed well

in the rental segment too. On the back of

metro expansion and aordable prices,

Kasarvadavali posted a signicant rise of

13 per cent in values, while Waghbil noted

a modest hike of ve per cent YoY.

• Ambernath and Badlapur recorded a 13

and eight per cent rise, respectively, on

the back of aordable rental options.

% C

h a n g e

6

Kasarvadavali

Badlapur

Dhokali

Ambernath

Waghbil

2

4

0

12

14

16

18

8

10

Locality

% C

h a n g e

3

Patlipada

Panch Pakhadi Ulhasnagar

Kalyan (West) Kalyan (East)

1

2

0

6

7

8

9

4

5

Locality







New launches were largely concentrated in the fringes of Thane and Navi Mumbai as

developers shifted their focus from luxury properties to aordable and mid-segment

housing segments. Small ticket sizes were popular even in MMR, wherein supply of

mid-segment properties dropped owing to improved absorption in the segment.

By Property Type

• Apartments formed the bulk of residential inventory in all zones except Thane and

Beyond, where residential land captured more than 60 per cent share of supply. MMR

continued to record the highest availability of apartments among all zones.

• Multiple new launches in Navi Mumbai, particularly in the aordable segment, inched

the supply up by one to three per cent in all categories except land. Ready-to-occupy

units formed more than 80 per cent of the inventory in the builder oor and house/

villa categories, while only about 60 per cent of the supply of society apartments was

ready-to-move-in.

% C

h a n g e

30

Oct-Dec2015

Residential Apartments

50%

29%

21%

31%

20%

Builder Floors Independent Housesand Villas

Residential Land

Jan-Mar2016

Oct-Dec2015

Jan-Mar2016

Oct-Dec2015

Jan-Mar2016

Oct-Dec2015

Jan-Mar2016

10

20

0

60

70

80

90

100

40

50

MMR Navi Mumbai Thane and Beyond

49% 45%

22%

33%

25%

30%

45% 51%

20%

29%

21%

26%

53%

25%

20%

55%

19%

20%

61%

BY PROPERTY TYPE




By Budget

• Supply has largely remained stagnant in MMR across all budget categories except for

properties in the budget range of Rs 60 lakh to Rs 1 crore. A slight drop of three per

cent was recorded in this category, indicating a few absorptions in this price bracket in

the last two quarters.

• On the back of several new launches by established developers, particularly in the

fringes, Navi Mumbai noted a rise in supply of housing inventory in almost all budget

ranges expect for the ultra-luxury segment. A rise of one to four per cent was noted

across all categories with high-income housing registering the maximum growth.

• Aordability ensured healthy traction in locations in Thane and beyond. This coupled

with limited number of new launches resulted in a slight drop in housing inventory in

Jan-Mar 2016, even though the zone has recorded the maximum unsold inventory.

% C

h a n g e

30

Oct-Dec2015

Jan-Mar2016

10

20

0

60

70

80

90

100

40

50


37%

31%

32%

33%

30%

37%

Oct-Dec2015

Jan-Mar2016

28%

48%

24%

49%

23%

28%

Oct-Dec2015

Jan-Mar2016

23%

41%

36%

22%

45%

33%

Oct-Dec2015

Jan-Mar2016

58%

21%

21%

23%

19%

58%

Oct-Dec2015

Jan-Mar2016

89%

5%

6%

89%

5%

6%

Affordable Housing(Within Rs 40 Lakh)

Mid-Income Housing(Rs 40-60 Lakh)

High-Income Housing(Rs 60 Lakh - Rs 1 Crore)

Luxury Housing(Rs 1-2 Crore)

Ultra-Luxury Housing(Rs 2 Crore and Above)

BY BUDGET




By Conguration Type

• MMR and Thane witnessed a drop in supply of smaller congurations. The supply of

1BHK and 2BHK units dipped by one to two per cent in Jan-Mar 2016 as against the

last quarter of 2015. On the other hand, Navi Mumbai witnessed a rise in supply

across all congurations.

• The 2BHK conguration continued to capture the highest market share in both MMR

and Navi Mumbai, while 1BHK units were more popular in Thane.

• Interestingly, in MMR and Thane, majority of the houses and builder oor units

were congured as 1BHKs, indicating the dearth of developable land in the main

areas of the city.

% C

h a n g e

30

Oct-Dec2015

45%

30%

25%

33%

23%

Jan-Mar2016

Oct-Dec2015

Jan-Mar2016

Oct-Dec2015

Jan-Mar2016

Oct-Dec2015

Jan-Mar2016

10

20

0

60

70

80

90

100

40

50


44%46%

33%

21%

36%

19%

45%

63%

19%

18%

19%

17%

64%

77%

12%

11%

76%

13%

11%

1BHK 2BHK 3BHK 4BHK

BY CONFIGURATION TYPE




By Construction Status

• Across the city, ready-to-move-in units were more common across all zones as

compared to under-construction units. This indicated that new launches are

still sparse in the city and sentiments continue to be under pressure for

under-construction projects.

• Out of the total ready properties available in Mumbai, almost half were present in

MMR. Thane also witnessed a marginal drop in the share of ready units during the rst

quarter of 2016.

• Navi Mumbai registered an improvement in the share of both ready as well as under-

construction properties, insinuating a few launches in the city in Jan-Mar 2016.

Ready to Move

50%50%

29%

21%

32%

18%

Under Construction

Jan-Mar 2016 MMR Thane and BeyondNavi Mumbai

Oct-Dec 2015 MMR Thane and BeyondNavi Mumbai

50%

28%

22%

48%

31%

21%

BY CONSTRUCTION STATUS




Capital Values

Mumbai Metropolitan Region (MMR)

Local ity Jan-Mar 2016 % Change Locality Jan-Mar 2016 % Change

RESIDENTIAL APARTMENTS


Andheri (East) 18500 2

Andheri (West) 22300 2

Bandra (East) 27550 -2

Bandra (West) 45700 -2

Bhandup (East) 12000 0

Bhandup (West) 14900 -1

Bhayander (East) 7550 1

Bhayander (West) 8100 1

Boisar 3200 -6

Borivali (East) 16050 0

Borivali (West) 16483 2

Breach Candy 65000 6

Byculla 24750 -1

Chembur 16250 7

Colaba 43775 4

Cue Parade 65300 1

Dadar 37800 2

Dahisar 10100 1Ghatkopar (East) 17000 1

Ghatkopar (West) 20250 3

Goregaon (East) 17700 -2

Goregaon (West) 17100 0

Jogeshwari (East) 14550 -7

Jogeshwari (West) 16450 2

Juhu 37350 -5

Kandivali (East) 15975 -2

Kandivali (West) 14300 -4

Kanjur Marg (East) 11850 3Kanjur Marg (west) 13825 2

Khar 40100 -4

Kurla (East) 14000 0

Kurla (West) 13867 2

Lower Parel 36150 0

Mahalaxmi 39175 -2

Mahim (West) 30000 0

Malabar Hill 67350 1

Malad (East) 16650 0

Malad (West) 15600 3

Mira Bhayandar 8150 1

Mira Road 8300 -1

Mulund 15600 2

Naigaon (East) 4600 -5

Naigaon (West) 4000 -2

Nallasopara 4217 -2

Napean Sea Road 66650 -2

Palghar 3100 0

Parel 25250 0

Powai 21450 3

Prabhadevi 42050 2Santacruz (East) 21875 1

Santacruz (West) 38800 7

Sewri 33350 -2

Sion (East) 17850 -1

Vasai 5450 0

Versova 21800 -2

Vikhroli (East) 19000 -7

Vikhroli (West) 17900 -4

Vile Parle (East) 29350 -2

Vile Parle (West) 32950 -3Virar 4800 3

Wadala 23700 1

Worli 38550 -2




Capital Values - Navi Mumbai

Airoli 10400 1

Belapur 9950 -1

Dronagiri 4733 3

Ghansoli 10500 -2

Kalamboli 6450 2

Kamothe 6825 -1

Karanjade 5217 -2

Khanda Colony 7600 0

Khandeshwar 7000 3

Kharghar 8650 0Koperkhairane 10225 2

Nerul 13050 2

New Panvel 5400 -2

Palm Beach 18817 3

Panvel 6125 0

Roadpali 6650 -1

Sanpada 14025 -1

Seawoods 11700 2

Shilphata 5500 -3

Taloja 4950 -4

Ulwe 6300 1

Vashi 12900 1




Capital Values

Thane and Beyond

Ambernath 3500 4

Anand Nagar 9400 1Badlapur 3500 4

Balkum 9450 1

Bhiwandi 4000 0

Charai 11900 3

Dhokali 10900 3

Dombivli (East) 6150 -2

Dombivli (West) 6700 3

Ghodbunder Road 9800 -1

Kalher 3800 0

Kalwa 9000 -1

Kalyan (East) 4300 5

Kalyan (West) 5950 5

Kapurbawadi 12600 -3Karjat 2986 4

Kasar Vadavali 8600 -5

Kavesar 9850 2

Khadakpada 6000 1

Khopat 12850 -7

Kolshet 8925 3

Kolshet Road 9725 -6

Majiwada 11300 -2

Manpada 11430 -3

Naupada 15050 2

Neral 3100 3

Panch Pakhadi 14500 5

Patlipada 12950 6

Pokharan Road 12550 0

Pokhran-2 12350 2

Teen Haath Naka 15900 6

Thakurli 5850 -5

Titwala 3350 5

Ulhasnagar 4200 5Vartak Nagar 11175 1

Vasant Vihar 12500 -2

Waghbil 9978 0




4 Bunglows 51 10

7 Bunglow 53 -2

Andheri (East) 43 6

Andheri (West) 51 2

Bandra (East) 61 6

Bandra (West) 85 1

Bhandup (East) 31 3

Bhandup (West) 35 5

Borivali (East) 33 2

Borivali (West) 29 2

Chandivali 45 13

Charkop 25 0

Chembur 40 8

Colaba 106 12

Cue Parade 129 5

Dadar 79 4

Dahisar 24 2

Gamdevi 97 -3

Ghatkopar (East) 38 0

Ghatkopar (West) 40 5

Goregaon (East) 38 -5

Goregaon (West) 39 3

Jogeshwari (East) 47 0

Jogeshwari (West) 46 3

Juhu 74 2

Kalina 49 2

Kandivali (East) 33 3

Kandivali (West) 31 -2

Kanjur Marg (East) 35 -1

Kanjur Marg (West) 40 4

Khar 82 1




Kurla (East) 33 5

Kurla (West) 40 -1

Lower Parel 91 -3

Mahalaxmi 109 2

Mahim (West) 65 5

Malabar Hill 128 -1

Malad (East) 38 3

Malad (West) 37 3

Marol 42 9Mira Bhayandar 17 10

Mira Road 17 10

Mulund 32 3

Nallasopara 10 -5

Pali Hill 92 2

Parel 71 -5

Powai 48 12

Prabhadevi 86 5

Santacruz (East) 50 8Santacruz (West) 72 -5

Sewri 80 3

Sion (East) 38 3

Thakur Village 36 -1

Vasai 10 -5

Versova 50 6

Vikhroli (East) 38 0

Vikhroli (West) 43 1

Vile Parle (East) 62 3Vile Parle (West) 65 -2

Virar 8 0

Wadala 50 2

Worli 84 2

Rental Values

Mumbai Metropolitan Region (MMR)




Rental Values

Navi Mumbai

New Panvel 12 15

Kharghar 15 12

Palm Beach 30 9

Taloja 7 8

Kamothe 11 5

Panvel 11 5

Nerul 23 5

Vashi 26 4Sanpada 27 4

Ghansoli 21 3

Koperkhairane 23 2

Seawoods 22 0

Kalamboli 9 0

Roadpali 9 0

Belapur 21 0

Ulwe 6 0

Airoli 23 -4




Ambernath 9 13

Badlapur 7 8

Dhokali 22 8

Ghodbunder Road 19 6

Kalyan (West) 12 5

Kasar Vadavali 17 13

Kolshet Road 20 0

Majiwada 24 2Manpada 22 5

Panch Pakhadi 28 4

Patlipada 25 2

Pokharan Road 24 4

Pokhran-2 23 0

Teen Haath Naka 29 10

Vartak Nagar 24 2

Vasant Vihar 24 0

Waghbil 20 5

Rental Values

Thane & Beyond

*All prices are per sq ft rates

*Capital values represent quarterly change

*Rental values represent yearly change



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1.3 Lakh Veried Listings 3.1 Lakh Live Owner Listings

E il t t@99 *Disclaimer: The report reects the overall market sentiment.Considering the olatile nat re of the ho sing sector price

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