Mumbai Insite Report Apr-Jun 2015

  • Share on
Real estate of Mumbai

City Highlights

Low sale volumes, high unsold inventory and stagnancy in infrastructure development continued to plague real estate of Mumbai, translating into an insignificant rise in Apr-Jun 2015, after a growth of two per cent in Jan-Mar 2015.

 Significant price movements in Mumbai_Apr-Jun 2015

  • The financial capital boasts of a slew of infrastructure projects at various stages of proposal and construction. However, most of the projects are facing inordinate delays or have been stalled due to non-feasibility.
  • Delay in the construction of Mumbai Urban Transport Project (MUTP), Jogeshwari-Vikhroli Link Road (JVLR), Santacruz–Chembur Link Road (SCLR), Metro and monorail Phase I have led to subdued sentiments.
  • The Bombay High Court scrapped the state government’s decision to offer additional Floor Space Index (FSI) for rental housing projects since it may adversely impact the already fragile civic infrastructure of the MMR.
  • Opening of the second phase of the monorail project, connecting Jacob Circle in South Mumbai with Wadala in Mumbai Harbour, is expected to solve commutation problem for those travelling to Chembur.
  • Construction of metro corridors – the underground Colaba- Bandra-Seepz line III, the elevated Dahisar-Charkop- Bandra-Mankhurd corridor, Andheri East-Dahisar line, the Seepz–Kanjur Marg rail line and the Wadala-Ghatkopar- Thane-Kasarvadaval corridor – is expected to improve the real estate story in the time to come.
  • The government’s endeavour to incentivise green building projects and resolve the problem of water scarcity by granting additional FSI to sustainable constructions has been welcomed by the industry.
  • The benefits expected to come of the ambitious $100 billion Delhi-Mumbai Industrial Corridor (DMIC) continues to be in the offing.
  • The Municipal Corporation of Greater Mumbai (MCGM) took steps to lessen procedural delays by including single-window clearances and online approvals. 

Key Influencers in Mumbai_Apr-Jun 2015

Mumbai Metropolitan Region (MMR) - (Central Suburbs, Andheri-Dahisar, Harbour, South & South West Mumbai, Mira Road & beyond)

Capital Analysis

  • Top performers in MMR_Capital Values_Apr-Jun 2015Although metro connectivity gave a fillip to the real estate story of the financial capital, the MMR’s property graph crawled up by a per cent in Apr-Jun 2015, after witnessing a two per cent growth in Jan-Mar 2015.
  • The Mumbai Trans Harbour Link (MTHL), which was to connect Sewri in South Mumbai and Chirle village in Nhava Sheva, got embroiled in a hurdle with the environment ministry. The Rs 11,000 crore project has been refused forest clearance since a 47 hectare mangrove forest has to be diverted for the construction of the link, thus adversely affecting the flamingos in the Sewri area.
  • While the Central suburbs and Andheri-Dahisar region saw capital values growing to the tune of two per cent, Mumbai Harbour witnessed insignificant rise during the June ending quarter of 2015. During the same span, property markets of south and south west Mumbai, as well as Mira Road and regions beyond remained stagnant.
  • Riding on the wave of metro connectivity, property prices along the Veera Desai Road surged by a whopping 20 per cent in Apr-Jun 2015, thus making the locality the highest grosser in the region. The road is a part of the Versova-Andheri-Ghatkopar metro corridor, and owes its popularity as a residential hub to this new infrastructure development.

Rental Analysis

  • Top performers in MMR_Rental Values_Apr-Jun 2015While the capital market in the MMR slowed down steadily, the residential rental market witnessed an average growth of eight per cent in Apr-Jun 2015, as compared to the same quarter in 2014.
  • Rental values in Mira Road and regions beyond, and Mumbai Harbour saw an uptrend of 15 per cent in the last one year. Central Mumbai suburbs followed with 12 per cent growth in rental prices, while Andheri-Dahisar rose to the tune of 11 per cent. The south west region grew by a mere three per cent, while South Mumbai’s market remained stagnant with already inflated rates.
  • Santacruz (East) in south west and Sewri in South Mumbai witnessed a maximum growth of 34 per cent, each, during the time span.
  • The Santacruz-Chembur Link Road (SCLR), exhibiting its long-term advantage, has propelled rental values in the locality as it reduced commutation time to the Bandra Kurla Complex (BKC). The double-decker flyover has also eased travel for those commuting between the North Suburban Business District (SBD) and Navi Mumbai.
  • The Sewri-Worli connector on the MTHL seems to have helped Sewri’s rental market. This 4.5 km long connector, which will bridge Bandra-Worli Sea Link with Trans Harbour Link, will get completed by 2017.

Navi Mumbai

Capital Analysis

  • Top performers in Navi Mumbai_Capital Values_Apr-Jun 2015The ambitious Navi Mumbai Airport Influence Notified Area (NAINA) has given a massive impetus to the region’s property market. Capital values jumped to the tune of four per cent in Apr-Jun 2015, as compared to Jan-Mar 2015 when the region recorded a spike of three per cent.
  • Not surprisingly, New Panvel was the highest gainer, witnessing a steep uptrend of 11 per cent in the quarter ending June 2015. The plethora of infrastructure projects, especially the clearance of the Navi Mumbai International Airport and the 10-laning of the Sion-Panvel highway, can be credited for the growth trajectory of the locality.
  • The property market in Roadpali rose insignificantly as a result of numerous affordable property options and proximity to Kharghar, Vashi and Belapur.
  • Vashi grew by five per cent in Apr-Jun 2015, as compared to the previous quarter, on the promise of the upcoming Nerul metro line, which will be at an easy distance of 7 km. The new Navi Mumbai Airport at Ulwe is also within a distance of 14 km from Vashi.
  • The Navi Mumbai metro project, which is being built in three phases, finally received the Central Railway clearance, and is expected to give a huge fillip to the region’s realty landscape. The first phase, connecting Belapur, Kharghar, Taloja and Pendhar, which will gradually be extended to the new airport, is slated to be completed by 2017.

Rental Analysis

  • Top performers in Navi Mumbai_Rental Values_Apr-Jun 2015Following the growth trajectory from the last quarter, Navi Mumbai’s rental graph improved by 12 per cent from Apr-Jun 2014 to 2015. Considering the number of proposed infrastructure projects and Special Economic Zones (SEZ) coming up in the satellite city, the growth in prices does not come as a surprise.
  • Sanpada, a part of the proposed Nerul-Uran metro corridor, which is expected to be complete by 2018, is the most preferred locality for tenants. It recorded a spike of 24 per cent in rental values in the last one year.
  • Palm Beach, where rental values climbed by 13 per cent and Vashi, which witnessed prices rising by four per cent, too, are situated on the Nerul metro line. Nerul’s rental market grew by 15 per cent in the last year.
  • Rental prices in Airoli jumped from 16 per cent in the last quarter to 22 per cent in Apr-Jun 2015, as compared to the preceding year. Airoli’s market is thriving on the presence of K Raheja Corp’s IT SEZ.
  • The rental market of Kamothe saw values springing from 11 per cent in Jan-Mar 2015 to 22 per cent in Apr-Jun 2015.
  • Located in the farther node of Navi Mumbai, rental values in Kamothe are lower than its neighbouring areas such as Kharghar, Belapur, and Sanpada, thus accounting for the spike in demand by tenants.

Thane and Beyond

Capital Analysis

  • Top performers in Thane and beyond_Capital Values_Apr-Jun 2015Thane’s real estate story flourished on the promise of better connectivity afforded by the upcoming Wadala- Kasarvadavali metro corridor, which is to pass via Ghatkopar and Thane. While over 60 per cent of the localities in the region recorded growth in Apr-Jun 2015, as a whole, Thane clocked an average rise of two per cent during this span.
  • Furthermore, the Maharashtra government is planning a new International Business and Finance Centre (IBFC) along the Thane-Belapur road. The proposal to create a financial hub also boosted realty sentiments in the region.
  • Thane recently saw the completion of the Vanjarpatti flyover connecting Wada in Palghar with Thane, thereby, reducing traffic snarls between Nashik and the neighbouring industrial areas. The region is expected to witness construction of three more flyovers in the near future – at the Alemida junction, the Meenatai Thakeray chowk and Naupada.
  • Khopoli and Kalyan (East), each, saw capital values soaring by 25 per cent in Apr-Jun 2015 as compared to the preceding quarter. While Khopoli owes its popularity to availability of affordable properties, Kalyan’s housing prices surged as a result of the launch of Phase III of Mumbai Urban Transport Project (MUTP).
  • MUTP will improve direct connectivity between the two places - Kalyan and Navi Mumbai.

Rental Analysis 

  • Top performers in Thane and beyond_Rental Values_Apr-Jun 2015Rising to the tune of 17 per cent Y-on-Y, Thane’s rental market performed the best, as compared to the other zones - MMR and Navi Mumbai.
  • The plush townships - Hiranandani Meadows and Hiranandani Estate were the highest grossers, clocking a spike of 29 per cent and 23 per cent in rental values, respectively, in the quarter ending June 2015, as compared to the preceding year.
  • A distant reality once upon a time, Ghodbunder Road remains abuzz with realty activities from industry titans such as Lodha, Hiranandani and Puraniks. Therefore, it does not come as a surprise that rental prices on the arterial road surged by 21 per cent this year. Already boasting of four flyovers, the road is set to witness a 4.4 km long freeway, which can be used by light vehicles, while heavy vehicle ply on the existing road.
  • Announcement of a new business district in Kalve having the potential to transform into the next Bandra Kurla Complex, improved rental sentiments greatly. It is believed that a Central Business District (CBD) in the area will spur development while relieving Mumbai of excess footfall during office hours.
  • The state government is currently in talks about expediting ‘cluster development’ plan, which will involve demolition and redevelopment of dilapidated buildings and construction of new residential structures.

 Supply Analysis

With home buyers adopting a wait-and-watch approach, unsold inventory soared in Mumbai. Majority of the housing units were ready to move and did not find takers due to inflated property prices. Among all other zones, Navi Mumbai witnessed the most robust construction activity.

Availability of different property types

  • Supply by property type in Mumbai_Apr-Jun 2015Supply of various property types – residential apartments, builder floors and independent houses/villas remained unchanged in Apr-Jun 2015, as compared to Jan-Mar 2015. Given the high property prices and vertical growth of the city due to space constraints, residential apartments continued to capture almost the entire market share.
  • Builder floor units recorded a mere two per cent supply in the city. More than a quarter of these were supplied in areas beyond Thane, which are still affordable in comparison to all other zones of the city – MMR, Navi Mumbai and Thane. Within MMR, areas beyond Mira Road recorded a healthy supply of builder floors.
  • Independent houses were negligibly available in the city. Most of this supply was noted in the MMR, especially in the Andheri-Dahisar region. Almost a quarter of the total supply of this property type was seen in Thane and areas beyond it.

Availability of Property by Budget

  • Supply by budget in Mumbai_Apr-Jun 2015High-income housing (Rs 60 lakh-1 crore), luxury-housing (Rs 1-2 crore) and ultra-luxury housing (Rs 2 crore and above) segments, recorded almost equal supply to the tune of 20-23 per cent, each, in the city.
  • While the high-income housing category was most supplied in Navi Mumbai, supply of the luxury-housing category was highest in the Andheri-Dahisar region, followed by Thane.
  • Out of the total inventory of properties in Thane, both high-income housing category and luxury-housing category captured one-third share, each.
  • Sky-rocketing land prices and high cost of construction has led Mumbai to become one of the most expensive residential real estate markets in the country. The city recorded an increase in supply of ultra-luxury housing units falling in the price range of Rs 2-5 crore. After Andheri-Dahisar, South and Mumbai Harbour recorded maximum availability of homes in the said budget.
  • The mid-income housing category (Rs 40-60 lakh) was the most supplied in Navi Mumbai vis-à-vis other regions in the city. Almost a quarter of the total inventory in Navi Mumbai fell in this price range.
  • Similar to several other metros, Mumbai recorded an increased supply of properties priced within Rs 40 lakh. In Apr-Jun 2015, properties in this budget made up 20 per cent of the total market share.
  • Navi Mumbai, Mira Road, areas beyond Mira Road and beyond Thane recorded maximum supply of properties priced within Rs 40 lakh. Both the zones – Mira Road and beyond; and Thane and beyond, had more than half of their properties in the said budget.

BHK-wise Distribution of Property

  • Supply by configuration in Mumbai_Apr-Jun 2015With such high property prices, undoubtedly, Mumbai recorded maximum demand for small and mid-sized homes, configured as 1BHK or 2BHK units.
  • Growing popularity of affordable housing led to an increase in supply of 1BHK homes. In Apr-Jun 2015, 1BHK units captured 37 per cent of the total market share, five per cent higher than the previous quarter. The apparent change may be attributed to new peripheries being developed as residential hubs.
  • Out of the total housing units priced within Rs 40 lakh (affordable housing category), about two-third were configured as 1BHK units, with the rest being 2BHK units.
  • Supply of 2BHK units captured 42 per cent of the total market share in Apr-Jun 2015. Maximum supply of these units was recorded in Navi Mumbai, followed by Andheri-Dahisar and Thane.
  • Supply of most of the 3BHK units ranged between Rs 2-5 crore, whereas, almost half of the inventory configured as 4BHK units were priced above Rs 5 crore. Such high prices led to low demand, thus, supply for these homes.
  • While supply of 3BHK units dipped by three per cent and stood at 17 per cent in Apr-Jun 2015, supply of 4BHK units dipped marginally and stood at four per cent, the lowest in the city.

Supply by construction status in Mumbai_Apr-Jun 2015Ready to move vs Under-construction

  • Similar to the previous quarter, more than 60 per cent of the inventory in Mumbai was ready to move in. Out of these, close to half were located in MMR, with Andheri- Dahisar region having maximum supply of ready units.
  • Amongst all other zones, Navi Mumbai recorded the most robust construction activity. Almost a quarter of the total under-construction units were located here.
  • Maximum supply of under-construction properties was seen in the high-income segment (Rs 60 lakh-1 crore) and the luxury segment (Rs 1-2 crore).
  • In line with demand, 2BHK units were the most constructed in Mumbai. Close to half of the total under-construction units were configured as 2BHK units.

 

 

 

 

Annexures

Capital values-
MMR

Locality

Apr-Jun 2015

%Change

Capital values-
MMR

Locality

Apr-Jun 2015

%Change

 

Andheri (East)

17500

1

 

Kurla (East)

13400

4

Andheri (West)

22700

1

Kurla (West)

15000

2

Bandra (East)

27000

-4

LBS Marg

14377

-6

Bandra (West)

47900

4

Lokhandwala

26800

15

Bandra Kurla Complex

32550

-4

Lower Parel

35800

-2

Bhandup (East)

14000

0

Mahalaxmi

38751

-5

Bhandup (West)

16500

2

Mahim (West)

30700

1

Bhayander (East)

7350

-1

Malabar Hill

72660

-2

Bhayander (West)

8620

2

Malad (East)

14550

4

Borivali (East)

15100

0

Malad (West)

15400

1

Borivali (West)

16450

1

Mira Road

7337

1

Breach Candy

64300

15

Mulund

16000

5

Charkop

13700

4

Mulund (East)

15000

0

Chembur

18250

-1

Mulund (West)

14700

3

Chembur (East)

18050

-3

Naigaon (East)

4025

2

Colaba

46200

-2

Nallasopara

4249

1

Cuffe Parade

75550

2

Napean Sea Road

72250

4

Dadar (East)

30799

0

Parel

27600

-5

Dadar (West)

37300

0

Powai

21600

2

Dahisar

12500

4

Prabhadevi

40800

2

Dahisar (East)

10850

-2

Sakinaka

16950

2

Dahisar (West)

14750

2

Santacruz (East)

22339

8

Ghatkopar (East)

16400

3

Santacruz (West)

37250

1

Ghatkopar (West)

19000

2

Sewri

32300

4

Goregaon (East)

17150

2

Sion (East)

21850

2

Goregaon (West)

17000

3

Vasai

4977

0

Hiranandani Gardens - Powai

33600

7

Versova

22750

-6

Jogeshwari (East)

16600

6

Vikhroli (East)

17785

5

Jogeshwari (West)

16500

3

Vikhroli (West)

17406

-2

Juhu

40500

1

Vile Parle (East)

30300

-4

JVLR

17450

-17

Vile Parle (West)

36500

-5

Kandivali (East)

14700

-1

Virar

4486

1

Kandivali (West)

15200

3

Virar (West)

4426

-4

Kanjur Marg (East)

11600

5

Wadala

23500

1

Kanjur Marg (West)

13850

-10

Wadala (East)

23800

1

Khar

42500

4

Worli

41250

6

Khar (West)

46500

5

 

 

 

Rental values-
MMR

Locality

Apr-Jun 2015

% Change

Rental values-
MMR

Locality

Apr-Jun 2015

% Change

 

Andheri (East)

43

2

 

Kanjur Marg (West)

34

26

Andheri (West)

49

11

Khar

76

-3

Bandra (East)

60

-5

Kurla (West)

37

3

Bandra (West)

85

1

Lokhandwala

50

16

Bhandup (West)

32

23

Lower Parel

100

4

Borivali (East)

30

20

Mahalaxmi

103

-1

Borivali (West)

27

23

Malad (East)

36

9

Chandivali

39

8

Malad (West)

36

6

Chembur

35

6

Mira Bhayandar

14

17

Churchgate

99

-12

Mira Road

16

14

Colaba

95

-13

Mulund

29

12

Cuffe Parade

122

-5

Mulund (West)

29

12

Dadar (East)

81

-2

Napean Sea Road

142

19

Dadar (West)

92

-5

Parel

87

-3

Dahisar

23

21

Powai

44

2

Ghatkopar (West)

36

6

Prabhadevi

82

-17

Goregaon (East)

37

9

Santacruz (East)

67

34

Goregaon (West)

40

11

Santacruz (West)

67

-4

Jogeshwari (East)

46

2

Sewri

79

34

Jogeshwari (West)

49

7

Tardeo

160

25

Juhu

80

3

Wadala

49

9

Kandivali (East)

30

11

Wadala (East)

49

11

Kandivali (West)

30

25

Worli

91

-1

Kanjur Marg (East)

36

24

Worli Seaface

91

-9

Capital values-
Navi Mumbai

Locality

Apr-Jun 2015

% Change

Capital values-
Navi Mumbai

Locality

Apr-Jun 2015

% Change

 

Airoli

9874

4

 

New Panvel

5000

11

Belapur

10800

8

Palm Beach

18500

1

Dronagiri

4500

5

Panvel

6100

4

Ghansoli

9304

5

Roadpali

6300

1

Kalamboli

5859

3

Sanpada

12813

-1

Kamothe

6400

5

Seawoods

11950

0

Karanjade

4900

0

Shilphata

5000

11

Kharghar

8400

1

Taloja

4650

1

Koperkhairane

10150

-1

Ulwe

5800

2

Nerul

12184

2

Vashi

12231

5

Rental Values –
Navi Mumbai

Locality

Apr-Jun 2015

% Change

Rental Values –
Navi Mumbai

Locality

Apr-Jun 2015

% Change

 

Airoli

22

22

 

Nerul

23

15

Belapur

22

5

Palm Beach

26

13

Kamothe

11

22

Panvel

11

0

Kharghar

14

17

Sanpada

26

24

Koperkhairane

22

10

Sea Woods

22

5

 

 

 

Vashi

25

4

Capital values-
Thane and Beyond

Locality

Apr-Jun 2015

% Change

Capital values-
Thane and Beyond

Locality

Apr-Jun 2015

% Change

 

Ambernath

3436

-8

 

Neral

2800

10

Anand Nagar

9528

2

Owale

8400

8

Badlapur

3403

10

Panch Pakhadi

14100

1

Badlapur (East)

3350

3

Patlipada

12009

0

Badlapur (West)

3450

1

Pokharan Road

11922

8

Balkum

8500

-8

Mumbra

3550

1

Bhiwandi

3610

7

Neral

2800

10

Dhokali

10786

3

Owale

8400

8

G B Road

9400

0

Panch Pakhadi

14100

1

Ghodbunder Road

10000

2

Patlipada

12009

0

Hiranandani Estate

12898

7

Pokharan Road

11922

8

Hiranandani Meadows

11189

-40

Pokhran Road-2

11802

-2

Kalyan (East)

5000

25

Teen Hath Naka

14970

-2

Kalyan (West)

5905

2

Thane (East)

9527

-13

Karjat

3200

-19

Thane (West)

10783

3

Kavesar

10150

6

Titwala

3200

0

Khadakpada

6100

6

Ulhasnagar

4500

10

Khopoli

3950

25

Vartak Nagar

11061

-4

Kolshet Road

11000

15

Vasant Vihar

12528

14

Majiwada

11660

1

Vasind

3100

3

Manpada

10800

-6

Waghbil

9700

1

Mumbra

3550

1

 

 

 

Rental values-
Thane and Beyond

Locality

Apr-Jun 2015

%Change

Rental values-
Thane and Beyond

Locality

Apr-Jun 2015

%Change

 

Ghodbunder Road

23

21

 

Manpada

21

11

Hiranandani Estate

27

23

Pokharan Road

24

9

Hiranandani Meadows

31

29

Pokhran Road-2

24

14

Kalyan (West)

11

0

Teen Haath Naka

28

17

Kapurbawadi

24

14

Thane West

25

9

Kolshet Road

17

6

Vasant Vihar

24

4

Majiwada

23

28

Waghbil

18

0

*All prices are per sq ft rates
*Capital values represent quarterly change
*Rental Values represent annual change


Copyright 99acres.com


  • Share on