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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
FOREWORD
Sudhir Pai
Business Head, Magicbricks.com
8/12/2019 PropIndex Apr-Jun 2014_NPI
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NOTES
8/12/2019 PropIndex Apr-Jun 2014_NPI
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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)
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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.
Similar to 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.
Similar to the previous quarter,
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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