MUMBAI Residential Property Market Overview -May 2015
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After almost eight quarters of slow movement of inventory in Mumbai, marginal improvement was witnessed in select micro markets at introductory level. Both, end- users and investors shy away from high valued apartments, but they continue to show interest in mid- range and affordable housing projects located in western suburbs and peripheral areas of Mumbai. This demand was also driven by various promotional schemes by developers like waiver of stamp duty & registration fee, attractive financial plans, freebies, part payment scheme like pay part down payment now and the rest on possession etc. in order to revive the demand. Despite revived interest among buyers, 1Q 2015 witnessed fewer new project launches as compared to last quarter. This is expected to dip further as developers are holding back their new launch decisions in view of further clarification on the new development plan. Some of the projects launched in the premium segment include, “Oberoi Eternia” by Oberoi Realty at Mulund, “AltaVista” by Spenta Corporation at Chembur. Market Indicators Relative to prior period 2014 2014 2015 2015F Market Q3 Market Q4 Market Q1 Market Q2 CAPITAL RATE NEW PROJECTS CONSTRUCTION RENTAL RATE MICRO MARKETS CAPITAL VALUES (INR PSF) % CHANGE QoQ YoY Market Trends MUMBAI | RESIDENTIAL
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Transcript of MUMBAI Residential Property Market Overview -May 2015
After almost eight quarters of slow movement of inventory
in Mumbai, marginal improvement was witnessed in
select micro markets at introductory level. Both, end-
users and investors shy away from high valued
apartments, but they continue to show interest in mid-
range and affordable housing projects located in western
suburbs and peripheral areas of Mumbai. This demand
was also driven by various promotional schemes by
developers like waiver of stamp duty & registration fee,
attractive financial plans, freebies, part payment scheme
like pay part down payment now and the rest on
possession etc. in order to revive the demand.
Despite revived interest among buyers, 1Q 2015
witnessed fewer new project launches as compared to
last quarter. This is expected to dip further as developers
are holding back their new launch decisions in view of
further clarification on the new development plan. Some
of the projects launched in the premium segment include,
“Oberoi Eternia” by Oberoi Realty at Mulund, “AltaVista”
by Spenta Corporation at Chembur.
Market Indicators
Relative to prior period 2014 2014 2015 2015F
Market Q3 Market Q4 Market Q1 Market Q2
CAPITAL RATE
NEW PROJECTS
CONSTRUCTION
RENTAL RATE
MICRO MARKETS CAPITAL VALUES
(INR PSF)
% CHANGE
QoQ YoY
Market Trends
MUMBAI | RESIDENTIAL
, “Kanakia Paris” by Kanakia Spaces at BKC, “K Hemani”
by Hemani Group at Kandivali (E) and “Runwal Bliss” by
Runwal Group at Kanjurmarg (E). These projects were
priced in the range of INR10,500 – 23,500 per sq ft.
There is a substantial decline in completion of premium
projects across Mumbai. The project completed this
quarter was “Ahuja Tower” by Ahuja Construction at
Prabhadevi, This project is priced at INR 52,000 per sq ft
in secondary market.
Despite of low demand the capital values in the
secondary market, in south central and central suburbs
increased marginally in the range of 1 – 3% QoQ.
However, in the western suburbs, capital values
increased in the range of 3 – 8% QoQ. Rents across the
city were remained stable, except in the western suburb
where rents marginally up in the range of 2 – 3% QoQ.
Colliers View
The city had witnessed cautious optimism, which is
expected to unlock the pent up demand over the next
few quarters and more precisely, around the festive
season of Ganesh Chaturthi and Diwali. In short term
we anticipate less project launches due to uncertainty
over development plan which may have different
guidelines for open space regulations, height restriction
of buildings and general utilisation of space etc.
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.
Indiabulls Finance Centre, 17th
Floor, Unit No. 1701, Tower 3
Senapati Bapat Marg,
Elphinstone (W)
TEL +91 22 4050 4500
Colliers International (India)
Property Services Pvt. Ltd.
Senior Manager
Residential Services| Mumbai
Average Capital Value Trends
Source: Colliers International India Research
Average Rental Values
Source: Colliers International India Research
National Director
Residential Services
Manager
Research Services
National Director
Valuation & Advisory
Services and Research
Director
Residential Services| India
Associate Director
Research Services
