Property Prices in Mumbai grow by 5% in Oct - Dec 2014 quarter: 99acres.com Insite Report

February 16 2015

Major Highlights:

• Positive consumer sentiments, new launches, developers announcing possession of projects and development on infrastructuralfront triggered an upward movement inMumbai in Oct-Dec2014.
• The Mumbai metro phase I, the ongoing monorail construction and the Eastern Express Highway link are some of the major growth drivers for localities in the Mumbai Metropolitan Region (MMR).
• Increasing demand from migrants kept the rentals high with Navi Mumbai and Thane being the popular choices.
• 1BHK and 2BHK continue to be the most supplied units across MMR, Navi Mumbai and Thane regions

Mumbai, 16 February, 2015: 99acres.com Insite is a quarterly report focusing on capital and rental price trends in residential real estate market across seven major cities of India. According to the report, prices per sq ft in Mumbai region witnessed a growth of five per cent in Oct-Dec 2014 as compared to Jul-Sep 2014. On the other hand, an annual comparison (Oct-Dec 2014 as against Oct-Dec 2013) reflects four per cent rise in property prices per sq ft. Rental rates witnessed an average increase of six per centin the Oct-Dec quarter compared to the previous one.

Supply across Mumbai zones recorded an appreciation of 14 per cent in the last quarter of 2014 compared to a 16 per cent rise in the previous quarter.

Commenting on the report, Mr Narasimha Jayakumar, Chief Business Officer, 99acres.com,said, &ldquoThe real estate market in Mumbai has seen a turnaround in the October-December quarter with better infrastructure, new projects in the offing and after effect of a stable government at the Centre. Better demand coupled with availability in suburban regions such as Navi Mumbai and Thane will push residential values further.&rdquo

Price Analysis of Mumbai ( Oct - Dec 2014 vs. Jul-Sep 2014 )
Residential Apartments &ndash MMR

• Thakur Village, Vile Parle (West) and Oshiwara recorded the highest growth in MMR accounting to 24 per cent, 21 per cent and 20 per cent respectively in per sq ft prices during in Oct-Dec 2014. Owing to infrastructure developments including the Mumbai Metro Phase I Versova-Ghatkopar belt and change of government, other localities too saw a rise in property prices. Wadala East, Sion (East) and Borivali (East) also witnessed an appreciation of 19 per cent, 17 per cent and 13 per cent respectively.
• The after effects of the Mumbai metro rail continued into the Oct-Dec 2014 as localities such as Dahisar (West) and Jogeshwari (West) witnessed a rise of six per cent each while Goregaon (West) saw a rise of 5 per cent respectively in capital values.

NAVI MUMBAI:

• The top performers in Navi Mumbai in Oct-Dec 2014have been Panvel and Sector-10, Kharghar, having witnessed an appreciation of 26 per cent and 14 per cent respectively. Seawoods and Ulwe saw a 12 per centand nine per cent hike in property prices. With the upcoming Navi Mumbai International Airport, Panvel and Ulwe have been attracting developers who are purchasing huge land parcels for residential projects.Ulwe saw a rise of nine per cent in per sq prices in the Oct-Dec quarter.
• Property values in Taloja, Kalamboli, Ghansoli, Roadpali and Airoli grew by four per cent to five per cent in the last quarter of 2014.
• The localities that witnessed a fall in capital values included Khandeshwar and Shilphata, with a one per cent and five per cent decline.

THANE:

• The average percentage rise was not as significant in Thane as in Navi Mumbai and MMR. However, the growth in this sub-city has been consistent over the last two quarters. The frontrunners in Oct-Dec 2014 were Nallasopara,Bhayander (East) and Bhiwandi, having witnessed 11-13 per cent rise in capital values.
• Balkum, Boisar and Ghodbunder Road saw a rise of nine per cent each in capital values in the Oct-Dec 2014. These three localities are home to many upcoming residential projects by reputed developers such as Runwal Group, Lodha and RNA Corp.

Rental Analysis:

• Rental trendshave been very promising across all zones in Mumbai. A large number of migrants and locals still prefer to live on rent due to spiraling capital prices across most localities. Navi Mumbai and Thane have been the obvious choices for these tenants as suburbs guarantee lower rental values and good connectivity to prime office and technology hubs in Mumbai. This was the reason why most localities in these two zones witnessed an upward trend in rentals in Oct-Dec 2014as compared to the previous quarter.

• Malad (West), Ghatkopar (West) and Dahisar have topped the appreciation charts in MMR with 12-13 per centrise in the last quarter of 20134 in the rental space owing to positive sentiments and better connectivity within MMR.

• In the Thane region, localities like Ghodbunder Road and Thane West recorded the maximum rise of six per cent and five per cent respectively in property prices.

Supply Analysis:

• It is no surprise that apartments form a major chunk of the property type in Mumbai, standing at 96 per cent in Oct-Dec quarter. The factors leading to abundance of apartments are lack of land availability in MMR.Whereas, builder floors and independent houses both constitute two per cent of the total property type.
• In Navi Mumbai, most developers who are expanding are rolling out townships or mixed-use projects only. Due to scarcity of land and absence of the builder floor concept in general all over Mumbai, the other categories are not so popular. Similarly in Thane apartments occupy the maximum share in terms of availability accounting to 98 per cent.
• MMR is the frontrunner in the Rs 1 crore to 5 crore segment, occupying 44 per cent of the total supply, followed by housing within Rs 40 lakh segment, standing at 22 per cent. Rs 40-60 lakh housing segment stood at 10 per cent in Oct-Dec 2014.
• In Navi Mumbai, the split between affordable, mid-income and high-income housing is well distributed. High-income housing (Rs 60 lakh &ndash1cr) accounts for 28 per cent and mid-income housing stands at 26 per cent. Luxury housing with apartments in the budget range of Rs 1cr to Rs 5cr witnessed the least availability, with 16 per centunits in this category. The ultra-luxury housing saw no availability in Navi Mumbai.
• Bearing in mind that most localities within MMR are developed, the percentage of ready-to-move properties is more than under-construction. The maximum number of units available for possession are priced Rs 5croreand above.On the other hand, in Navi Mumbai, the availability of under-construction units is maximumwithin the Rs 40 lakh budget category, standing at 63 per cent.
• Inthe last quarter of 2014, 2BHK emerged as the most supplied unit for apartments, at 38 per cent followed by 1BHK at 36 per cent in MMR whereas, 3BHK constituted about 21 per cent of the total supply in this quarter and 4BHK was a meagre five per cent.

About 99acres.com:

Launched by Info Edge, in September 2005, 99acres.com is a gateway to the one of the fastest growing property markets of the world, an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 6 million visitors visiting the website every month looking for real estate solutions, 99acres.com regularly enjoys the highest traffic share, time spent on site and maximum page views, making it the most popular real estate portal in the country. Backed by a strong team and a network across 17 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.

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