Tuesday, 2 February 2016

Looking back, looking forward





Navi Mumbai outperformed all other zones in Mumbai in Q3 2015 as per the 99acres.com Insite Report

The 99acres.com Insite quarterly report focusing on capital and rental price trends in the residential realty market across seven cities of India states that property prices per sq ft in Mumbai have stagnated in October-December 2015, as compared to the preceding quarter. The rental market improved by 4% in the quarter ending December 2015, as compared to the same quarter in 2014. Supply of properties within the range of Rs 40 lakh surpassed that of houses in Rs 1-2 crore and ultra-luxury above Rs 2 crore segments.

Narasimha Jayakumar, Chief Business Officer, 99acres.com, said, “Developers in Mumbai have taken cognisance of homebuyers’ demand, which is centred on the affordable and mid-income housing segments. To this end, the supply balance has tilted in favour of properties priced Rs 40 lakh and below, as opposed to apartments displaying price tags above Rs 1 crore.”

Price trend analysis
(October-December 2015 vs. July-September 2015)
Mumbai Metropolitan Region (MMR - Central Suburbs, Andheri-Dahisar, Harbour, South and South West Mumbai, Mira Road and beyond)
While the south west region of Mumbai boasted of minimal growth, all other regions either witnessed a downward trending property graph or a slight dip in capital values.
Vasai Road, a locality beyond Mira Road, saw capital values clocking a surge of 10% in October-December 2015, the highest in MMR.
The peripheral industrial town of Boisar recorded an average rise of 8% as a result of being a comparatively low-cost area.
Kanjur Marg (West), too, witnessed a growth of 8% owing to the recent improvement in rail infrastructure and the MMRC prioritising Seepz-Kanjur Marg Metro corridor.

Navi Mumbai
Replicating last quarter’s growth trajectory, Navi Mumbai’s market clocked a growth of 2% in Oct-Dec 2015, vis-à-vis the preceding quarter.
Despite the Navi Mumbai International Airport remaining embroiled in legal controversies, it offered hope to the micro-markets of Ulwe, Kharghar and Kamothe.
Average capital values in Sector-36, Kharghar, which houses CIDCO’s affordable residential project under the Swapnapurti Scheme, plunged by 5%, quarter-on-quarter.
In addition to the ongoing Navi Mumbai Airport Influence Notified Area (NAINA), the city has another achievement to boast, CIDCO’s smart city project.

Thane
Despite a slew of infrastructure improvements, Thane’s property landscape remained stagnant in October-December 2015, after clocking a minimal growth of 1% in the July-September quarter.
Patlipada’s real estate grew from 3% in the quarter ending September 2015 to 6% in Oct-Dec 2015 on the back of two premium projects.
Kapurbawdi’s capital sentiments flagged from 7% in Jul-Sep 2015 to 5% in the October-December quarter.
Bhiwandi and Kolshet Road, too, witnessed property prices appreciating by 5% during the time frame.

Rental analysis
(October-December 2015 vs. July-September 2015)
Mumbai Metropolitan Region (MMR - Central Suburbs, Andheri-Dahisar, Harbour, South and South West Mumbai, Mira Road and beyond)
Average rental values climbed by a notable margin of 4% in October-December 2015, as compared to the same quarter in 2014.
Sakinaka in Andheri East clocked an enormous rise of 17% each, year-on-year, on the back of metro connectivity.
Jogeshwari (West), where average rental values in the last one year escalated to the tune of 14%, had to thank the connecting bridge between the locale and Goregaon (East).
Rental rates in Chandivali and Powai in the Central Mumbai suburbs witnessed a decent jump of 12% in a year. Navi Mumbai
Navi Mumbai’s rental market witnessed an unanticipated growth of 7% in October-December 2015 on the back of strong IT/ITeS presence.
New Panvel boasted of a rise of 20% due to its excellent civic infrastructure, the Mumbai-Pune Expressway and the Uran-Panvel Road.
With the state government adopting the ‘Housing for All’ scheme, the comparatively affordable market of Ulwe clocked a rental growth of 17%.
The premium residential belt of Palm Beach and Belapur witnessed a growth of 16% each, year-on-year. Thane
Maintaining its growth pace on the rental charts, clocked an average rise of 4% between October-December 2014 and 2015.
Anand Nagar’s rental landscape witnessed a remarkable hike of 10% owing to its strategic location at a cross junction road, which facilitates quick travel to Kolshet Road via the locality.
The long-pending issue of broadening Pokharan Road No.1, which will ease bottlenecks at Vartak Nagar junctions has buoyed sentiment in Pokharan Road which recorded a rental hike of 10%.
Hiranandani Estate, which saw values escalating by 9% during the tracked time span, draws its demand from its excellent civic amenities, such as clean roads and educational facilities.

Supply analysis
(October-December 2015 vs. July-September 2015)
l Boasting of several upcoming and proposed infrastructure enhancements, Navi Mumbai strode ahead of the other zones in bagging nearly one-third of the total supply of apartments.
Prolonged lack of buyers have succeeded in altering the market dynamics of Mumbai. In the October-December 2015 quarter, the supply of properties within the price range of Rs 40 lakh, ousted luxury and ultra-luxury housing from its prime position.
l High capital rates and inequitable growth in income ensured that properties configured as 1BHK and 2BHK remained the most in demand.
Mumbai developers were focussing on completing existing projects, fixing their own businesses in a bid to win back homebuyers and clearing unsold stock. This trend is evident in the consistently dipping number of under-construction properties in the last three quarters.

Report highlights
With the exception of the south west localities, the property landscape of the Mumbai Metropolitan Region (MMR) has experienced a downturn, as a result of lofty price tags.
Navi Mumbai is set to witness Maharashtra’s first smart city project by the City and Industrial Development Corporation (CIDCO). It recorded an average capital growth of 2% in the last quarter of 2015.
The frequent policy changes in Thane’s real estate market and habitual stonewalling of core stakeholders when drafting vital industry guidelines, dampened developers’ sentiments. Average capital values in Thane stagnated between the last two quarters of 2015.
The highway infrastructure may receive a massive boost with the state government planning to pump Rs 28,000 crore in 21 projects spanning 1,500 km, in 2016.
Taking a step towards promoting real estate transparency, the state would grant new building permissions and conduct regular audits via e-platform starting January, 2016.

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

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