PropIndex Apr-Jun 2014_NPI

8/12/2019 PropIndex Apr-Jun 2014_NPI

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PropIndex entered the fourth year of operations. In the first issue of the

series, PropIndex reflected the cautiously positive consumer sentiment

with the National Property Index rising by 1 per cent in the Apr-Jun 2014

quarter. The City Index values too, remained even across cities with a

marginal increase or drop of 1 per cent, except in Delhi.

Demand for property in the Upto Rs 20 lakh dropped across the country,

contrary to the industry buzz that this is undersupplied and in greater

demand. The 2BHK unit remained the most popular category across cities,

reflecting the aspiration of urban dwellers to own a property that would

match their lifestyles. The most preferred price range remained

Rs 30-50 lakh, where supply was in plenty and the budget was within reach

of the middle class, which remained out of the market for a few quarters.

Luxury properties, though in greater demand, remained over-supplied as

developers across the country chose to build in this category. As more units

hit the market, consumers have started choosing locations, budgets and

conveniences in this category. Luxury values across cities have been

included as a separate annexure.

Rental values either dropped or stabilised in the quarter. The percentage

growth in rental values was arrested as consumers again started looking

for the buy option. Unlike the previous quarter, where rental values rose by

5-10 per cent, in this quarter, it dropped by upto 5-6 per cent, across cities.

Demand preferences remained the same as in the previous quarters but

was not evenly spread across the city. Locations near economic corridors

continued to post greater demand. However, unlike the previous quarter,

besides IT, the manufacturing sector too, drove demand in select cities such

as Chennai. In Mumbai, the commercial hubs of the Bandra-Kurla

Complex and even Thane drove demand. The completion of infrastructure

projects such as the Santa Cruz-Chembur Link Road and the the Metro

Phase-I from Versova to Ghatkopar, which eased connectivity to the

commercial hubs, also contributed to change in demand patterns.

The Union Budget of 2014-15 presented recently, has addressed the housing

markets concerns in many ways. It has featured budget housing, financeissues, township development road map and development of smart cities as

part of the main Budget. While the outcome will take a while, the urban

infrastructure and housing provisions are expected to boost sentiment.

These are exciting times and change is in the air. Share your views on this

report and how we could make PropIndex even better. Write in at

[email protected].

FOREWORD

Sudhir Pai

Business Head, Magicbricks.com


3/13

NOTES


4/13

APR-JUN 2014

In the Apr-Jun 2014 quarter, no

major change was recorded in the

respective City Indices, except

Delhi, which registered a drop of

4 per cent. All other Indices

exhibited minus 1 to plus

1 per cent change, indicating a

slow market. No significant

increase was noted in supply,

showing a cautious approach.

NPI is a weighted average of

supply and values across 11 cities

in India. Average capital values

across cities showed a range

bound movement. On the other

hand, unlike the previous quarter,

average rental values exhibited a

drop. This resulted in a marginal

rise or stable rental values in the

last six months.

Lack of policy favourable for the

real estate and no reduction in thehome loan interest rates after the

formation of the new government

also impacted sentiments,

contributing to the stable City

Index values. This led to a small

rise of 1 per cent in the NPI.

Bangalore, Chennai, Gurgaon,

Kolkata and Pune noted a small

rise of 1 per cent in the City

Index. On the other hand, Noida,

Ghaziabad, Vadodara and

Mumbai City Indices remained

unchanged. Ahmedabad and

Hyderabad showed a small drop of

1 per cent. Of the 12 cities tracked,Pune and Ghaziabad recorded the

lowest number of localities with a

drop in the average capital values.

The new government has laid

special emphasis on the real

estate sector in the Union

Budget 2014-15.

With the modified version of Real

Estate Investment Trusts (REITs),

the development of

100 Smart Cities, reducing the size

and capital requirements ofprojects eligible for FDI,

launching affordable housing

schemes to proposing additional

tax incentives on home loan, the

government has announced a slewof measures to infuse fresh life

into the real estae sector.

In this edition of the PropIndex,

we have also included Vadodara

as an independent city. The

residential market of Vadodara

remained stable, with maximum

development in and around the

growth corridors such as Old

Padara Road, Sama Savli Road,

Waghodia Road and Gotri Road.

n Of the 12 cities9 showed minor

changes in the CityIndices, while rentalmarket showedsubdued trends inmajority of the cities

n Properties worth uptoRs 30 lakh recorded asignificant drop indemand, whereas,properties worthabove Rs 30 lakh,across the budgetcategories, witnesseda rise

n Demand for 2BHKunits rose by 1-5 percent across the cities,except Gurgaon

IN THIS REPORT:

National Property Index...............1

Luxury........................................4

NATIONAL PROPERTY INDEX (NPI)

VOL 4, ISSUE 1; APR-JUN, FY 2014-15

APR-JUN 2014

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NATIONAL PROPERTY INDEX

l Except Gurgaon, all other cities

recorded growing demand of

1-5 per cent for 2BHK units

l Properties worth Rs 30-50 lakh

continued to top the buyer

preference chart with amarginal increase of 1 per cent

from the previous quarter

l Demand for mid-segment

properties worth Rs 50-70 lakh

and premium properties worth

Rs 1-2 crore rose by 6 per cent

l Supply of premium properties

in 8 of the 12 cities outstripped

demand

The Ahmedabad City Index

again dropped by 1 per cent in theApr-Jun 2014 quarter. This was

primarily on account of a drop in

the capital values by 1-4 per cent

in large number of localities in

the city. This kept the City Index

value intact. On the supply side,

no significant change was

registered in the current quarter.

South Bopal showed maximum

increase in listings. The Listed

Price Monitor showed a similar

drop of 1 per cent.

The Delhi City Index registered a

maximum drop of 4 per cent

during the Apr-Jun 2014 quarter.

Increase in availability of

properties on sale primarily in the

single floor units and drop in the

average capital values by

1-9 per cent contributed to the

drop in the City Index. Uttam

Nagar in West Delhi noted the

maximum increase in supply,

followed by Safdarjung Enclave in

South Delhi. Over 80 per cent of

total housing demand was for

apartments. With nearly

45 per cent demand, 2BHK units

continued to be the most preferred

BHK category at the city level,

followed by 3BHK units with

41 per cent demand.

Similar to the previous quarter,

the GurgaonCity Index rose by

1 per cent in the Apr-Jun 2014

quarter as well. The Listed Price

Monitor, on the other hand,

remained stable, unlike theprevious quarter where it

recorded a drop of 1 per cent.

No major change was recorded in

average capital values in the

current quarter. However, the

rental market showed a drop,

unlike the previous quarter.


the NoidaCity Index showed no

change. Increase in availability of

residential apartments for sale

coupled with an overall stabilityin the average capital values

arrested the growth of the City

Index. This too, kept the Listed

Price Monitor unchanged in the

current quarter.

Unlike the drop of 1 per cent in

the Jan-Mar 2014 quarter, the

Ghaziabad City Index alsoremained unchanged. The Listed

Price Monitor recorded a drop of

1 per cent. Unlike other parts of

the Delhi-NCR, Ghaziabad posted

a rise between 1-3 per cent in

capital values. Lal Kaun at

11 per cent was an exception.

Over 65 per cent of residential

localities tracked in the city

witnessed a rise in the average

capital values. This arrested the

fall of the City Index inspite of

slow uptake in the residential

market. The Mumbai City Index

remained unchanged in the

Apr-Jun 2014 quarter unlike the

previous quarter where it

registered a rise of 1 per cent.

The Listed Price Monitor also

remained unaltered against the

Locality Rank

Q1 Q4

Mumbai 1 1

Bangalore 2 2

Pune 3 3

Chennai 4 4

Gurgaon 5 8

Kolkata 6 6

New Delhi 7 7

Hyderabad 8 5

Ghaziabad 9 9

Noida 10 10

Preferred Cities - Sale

Note: Q4 Apr-Jun 2014, Q1 Jan-Mar 2014

Preferred Cities - Rent

Locality Rank

Q1 Q4

Mumbai 1 1

Pune 2 2

Bangalore 3 3

New Delhi 4 4

Chennai 5 5

Hyderabad 6 6

Gurgaon 7 7

Ghaziabad 8 10

Kolkata 9 8

Noida 10 9

Note: Q4 Apr-Jun 2014, Q1 Jan-Mar 2014


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2 per cent rise it witnessed in the

Jan-Mar 2014 quarter.

East and WestPune remained the

most preferred residential

corridors, quarter-over-quarter.

No significant change was noted in

the average capital values. The

increase or drop in values was

registered between minus 4 to

6 per cent, with a healthy supply.This led to a 1 per cent rise in the

Pune City Index.

A 1 per cent increase was

registered in the Kolkata City

Index. Inspite of increase in the

average capital values in majority

of the localities tracked in the city,

the Listed Price monitor remained

unchanged. Statistics showed

maximum residential development

in South and East Kolkata,

followed by North Kolkata. Thecity continued to yield higher

rental returns of over 3 per cent,

owing to lower base price of

property and healthy rental values

in comparison to other

metropolitan cities.


the ChennaiCity Index continued

to rise. It rose by 1 per cent yet

again in the Apr-Jun 2014 quarter.

The Listed Price Monitor reported

a drop of 2 per cent in the current

quarter against a rise of 4 per cent

in the Jan-Mar 2014 quarter.

Residential properties worth

Rs 40-60 lakh remained the most

preferred budget category, followed

by properties in the budget range

of Rs 20-40 lakh at 25 per cent.

Post the peace that followed the

Telangana decision, Hyderabad

seemed to have stabilised. The

residential property sector was

relatively subdued in the

Apr-Jun 2014 quarter, as compared

to the Jan-Mar 2014 quarter. The

Hyderabad City Index dropped by1 per cent, primarily attributed to

stable property prices and infusion

of new inventories at a steady

pace. This arrested the City Index

growth. The Listed Price Monitor

also dropped by 1 per cent as

against a drop of 3 per cent in the

previous quarter.

BangaloreCity Index rose by

1 per cent, in line with the NPI.

With buyer sentiments in a wait-

and-watch mode post elections, theBangalore market has been mostly

passive, resulting in little change

in property values in the current

quarter. There was no change in

the Listed Price Monitor. However,

the rental market was subdued in

the current quarter unlike the

previous quarter.

The VadodaraCity Index value

remained unchanged during the

Apr-Jun 2014 quarter. Drop in the

average capital values in areas

witnessing maximum development

arrested the growth of the City

Index. This resulted in the City

Index value remaining unchanged

in the current quarter.

U(+' R* 20 La$" R* 20-30 La$" R* 30-50 La$" R* 50-70 La$" R* 70-100 La$" R* 1-2 C)') R* 2 C)') & Ab'

National - Consumer Budget Preference

30%

25%

20%

15%

10%

5%

0%

1%

5%

25%21%

17% 18%

12%

TOP YIELD GROSSERSGross yield is a ratio of average annual

rental value to the average capital value

of the property. Given below are the top

yield-grossing localities in each city.

Locality Gross yieldBangalore, Sarjapur Road 4.97%

Kolkata, Banshdroni 4.78%

Hyderabad, Nallagandla 4.41%

Ahmedabad, Vejalpur 4.20%

Chennai, OMR 3.92%

Delhi, Uttam Nagar 3.62%

Noida, Sector-92 3.42%

Mumbai, Parel 3.31%

Pune, VL Vishrantivadi 3.18%

Ghaziabad, Indirapuram 3.01%

Gurgaon, Sushant Lok 2.99%

C PIT L G INSThe table given below indicatesmaximum increase in capital values in

each city.

Locality % ChangeGhaziabad, Lal Kuan 11.36%

Bangalore, Sahakar Nagar 10.27%

Hyderabad, Begumpet 9.20%

Kolkata, Narendrapur 8.46%

Mumbai, Mulund West 7.66%

Ahmedabad, Ghatlodia 7.46%

Chennai, Anna Nagar West 6.69%

Pune, Kalyani Nagar 5.85%

Noida, Sector-93A 4.75%

Delhi, Kalkaji 3.31%

Gurgaon, Sector-67 2.08%


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DELHI

DEM ND 2-2.3 cr 2.3-3 cr 3-4 cr 4-5 cr 5 &boveEast 33% 22% 27% 6% 12%

North 28% 21% 26% 9% 16%South 11% 19% 30% 11% 29%

West 39% 21% 19% 6% 15%

City 20% 20% 27% 9% 24%

SUPPLYEast 25% 31% 15% 9% 20%

North 14% 18% 26% 14% 28%

South 4% 9% 17% 15% 55%

West 34% 29% 16% 7% 14%

City 8% 12% 17% 14% 49%

GURGAONDEM ND 2-2.3 cr 2.3-3 cr 3-4 cr 4-5 cr 5 cr &boveDwarka Expressway 30% 29% 29% 1% 11%

Golf course Extn Rd 26% 16% 25% 11% 22%

New Developing Sectors 48% 22% 26% 3% 1%

New Gurgaon 24% 25% 25% 10% 16%

Old Gurgaon 27% 20% 24% 9% 20%

Sohna Road 42% 24% 23% 5% 6%

City 27% 23% 24% 10% 16%

SUPPLYDwarka Expressway 26% 30% 15% 8% 21%

Golf course Extn Rd 14% 22% 27% 11% 26%New Developing Sectors 64% 26% 2% 1% 7%

New Gurgaon 16% 23% 22% 13% 26%

Old Gurgaon 15% 35% 25% 9% 16%

Sohna Road 37% 34% 13% 9% 7%

City 18% 24% 22% 11% 25%

NOIDA

DEM ND 1-1.4 cr 1.4-2 cr 2-3 cr 3-5 cr 5 cr &boveNew developing sectors 60% 20% 9% 9% 3%

Noida Gr Noida Expway 36% 33% 18% 10% 3%Old Noida 38% 24% 15% 16% 7%

City 42% 28% 15% 11% 4%

SUPPLYNew Developing Sectors 62% 14% 13% 6% 5%

Noida Gr Noida Expway 38% 24% 18% 11% 9%

Old Noida 22% 17% 18% 23% 20%

City 36% 21% 18% 13% 12%

MUMBAI

DEM ND 2-2.3 cr 2.3-3 cr 3-4 cr 4-5 cr 5 cr & bove

Central Line 31% 24% 19% 11% 15%

Central Mumbai 14% 17% 32% 14% 23%

Harbour Line 19% 22% 22% 9% 28%

Navi Mumbai 39% 16% 27% 8% 10%

South Mumbai 7% 7% 17% 11% 58%

Thane 41% 21% 29% 4% 5%

Western Suburbs 24% 26% 23% 9% 18%

City 24% 24% 22% 9% 21%

SUPPLYCentral Line 25% 33% 19% 5% 18%

Central Mumbai 8% 21% 20% 11% 40%

Harbour Line 17% 30% 26% 10% 17%Navi Mumbai 25% 27% 24% 7% 17%

South Mumbai 3% 6% 9% 7% 75%

Thane 28% 36% 19% 5% 12%

Western Suburbs 19% 25% 18% 13% 25%

City 16% 24% 18% 10% 32%

Luxury takes centre stage in Indian citiesA

cross India, luxury

properties have seen a

rising demand. However,

with developers in most cities

choosing to build heavily in this

segment, the luxury market

continued to be over-supplied.

In smaller cities such as Vadodara,

local demand from industrialists,

in the 40-year age group seeking to

upgrade lifestyle, drove demand in

the category. In most big cities,

luxury demand came from IT and

Manufacturing professionals

looking for premium lifestyles

near their place of work. It came

packaged with premium asset

quality, safe gated communities,

lifestyle features such as joggingtracks, swimming pools, sports

facilities and well planned

landscaping. A key component of


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luxury development has been

efficient concierge services,premium brand tie-ups and

predictive facilitations.

Luxury in the suburbs has been

around for a while. But in the past

six months luxury demand has

re-entered CBD (Central Business

District) areas which are under

re-development. A clear case isBangalore and Chennai where

traditional downtown premium

areas such as MG Road and Adyar

are posting both supply and robust

demand for extremely high-priced

modern units which are built on

re-developed old plotted layouts.The buyers are the traditional

wealthy citizens of the city who

are upgrading to modern

apartment living within localities

in their comfort zone. The quality

of assets supercedes the packaged

lifestyle features in these areas.

Location contributes to a largepart of the values of these

properties.

As users go online to seek luxury

property, PropIndex acknowledges

this as a significant segment.

CHENNAI

DEM ND 1-1.4 cr 1.4 -2 cr 2-3 cr 3-5 cr 5 cr & boveCentral 33% 24% 17% 15% 11%

North 37% 37% 13% 7% 6%

South 41% 24% 15% 9% 11%

City 38% 27% 15% 10% 10%

SUPPLYCentral 20% 23% 20% 14% 23%

North 25% 27% 18% 13% 17%

South 28% 21% 17% 17% 17%

City 25% 23% 18% 15% 19%

BANGALORE

DEM ND 1-1.4 cr 1.4-2 cr 2-3 cr 3-5 cr 5 cr &boveCentral 29% 30% 17% 15% 9%

East 43% 31% 14% 7% 5%

North 38% 29% 18% 10% 5%

South 44% 26% 15% 8% 7%

West 40% 27% 17% 9% 7%

City 42% 29% 14% 9% 6%

SUPPLYCentral 16% 20% 19% 17% 28%East 34% 24% 20% 12% 10%

North 34% 28% 21% 11% 6%

South 30% 27% 21% 14% 8%

West 35% 30% 20% 11% 4%

City 32% 26% 21% 12% 9%

PUNE

DEM ND 1-1.2 cr 1.2-1.6 cr 1.6-2.0 2-4 cr 4 cr &cr boveCentral 10% 27% 16% 21% 26%

East 31% 35% 11% 17% 6%

North 38% 28% 7% 19% 8%

South 31% 35% 11% 19% 4%

West 31% 37% 10% 17% 5%

City 31% 36% 11% 16% 6%

SUPPLYCentral 4% 13% 12% 41% 30%

East 27% 31% 11% 19% 12%

North 21% 33% 10% 26% 10%

South 25% 24% 19% 22% 10%West 27% 26% 14% 23% 10%

City 26% 27% 13% 22% 12%

HYDERABAD

DEM ND 1-1.4 cr 1.4-2 cr 2-3 cr 3-5 cr 5 cr &boveEast 48% 20% 19% 5% 8%

North 57% 28% 11% 2% 2%

South 51% 24% 11% 8% 6%

West 37% 25% 12% 13% 13%

City 40% 25% 12% 12% 11%

SUPPLYEast 53% 22% 7% 13% 5%

North 29% 33% 24% 11% 3%

South 16% 18% 25% 28% 13%

West 26% 20% 25% 15% 14%

City 27% 21% 23% 17% 12%


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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 in the information/data contained in this book. It shall have

neither liability nor responsibility to any person or entity with respect to any loss or damage 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.

CONTACT US

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PropIndex Apr-Jun 2014_NPI

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