Insite Report Pan India Summary Jul-Sep 2014
Across India, the National Capital Region offers more options for home buyers than any other city. It accounts for almost half of the real estate available for residential purposes across India, followed by Mumbai (17 per cent), Bangalore (11 per cent), Pune (9 per cent) and Chennai (8 per cent) and Hyderabad (2.5 per cent).
- With respect to addition in supply of real estate, tier-2 cities such as Pune emerged as one of the top growing destinations for residential real estate with a 77 per cent growth in the last year followed by Kolkata (68 per cent), Chennai (66 per cent) and Bangalore (62 per cent).
- Overall, while the National Capital Region remained static with respect to average growth in capital values across all localities, Bangalore grew at five per cent, Chennai by three per cent, Kolkata-two per cent, Mumbai-two per cent, Pune-three per cent and Hyderabad saw a negative growth of one per cent.
- Speaking of real estate supply in micro-markets in the last two years, West Kolkata, Central and West Delhi as well as West Bangalore have demonstrated triple digit growth. In the last one year, even the somewhat saturated South Delhi grew by 76 per cent owing to emergence of brand new localities, South Chennai by 72 per cent, the region beyond Mumbai Thane by 80 per cent, Greater Noida-67 per cent, North Bangalore-82 per cent and Faridabad by 72 per cent, to name a few frontrunners.
- Speaking of growth in home (apartment) values, Bangalore emerged as an investor’s paradise for apartments with multiple regions showing growth in excess of 25 per cent in capital values in the quarter ending September 2014. HSR Layout grew by 49 per cent, Banashankari Stage III by 39 per cent, BTM Layout (35 per cent) and Indira Nagar (32 per cent) in the Jul-Sep 2014 quarter. These were followed by EM Bypass and Joka in Kolkata, Sector 31-Gurgaon and Sector Omicron I in Greater Noida.
- Some significant shifts were seen from earlier favourites and this resulted in degrowth of hitherto high growth areas. With respect to apartments, Vasundhara and Vaishali in Ghaziabad saw a capital value decline of 10 per cent and six per cent respectively (quarter on quarter). In residential land, Nehar Par in Faridabad experienced a degrowth of 70 per cent in capital prices. Yelahanka (-32 per cent), Sector 122-Noida (-22 per cent), Sector 150-Noida (-36 per cent) are other notable examples.
- Instead, investor activity shifted to Sohna (57 per cent), Ballabhgarh (33 per cent), Sector-41 Noida (31 per cent), Devanahalli International Airport (108 per cent) and HSR Layout (95 per cent). These were the top growth areas in residential land in Jul-Sep quarter.
- City wide capital price movements have been impacted by a range of factors, primarily better public infrastructure. In Delhi, new connectivity through the FNG expressway, Southern Peripheral Road and KMP Expressway as well as the metro impacted demand and consequently prices. In Mumbai, the Versova Ghatkopar metro line, the Santacruz-Chembur link road and development of Sion-Panvel Highway impacted growth. IT Parks and betterment of social and physical infra around these kept buyer spirits up in Bangalore whereas capital values were positively impacted by the MRTS in Chennai and the metro in Kolkata.
- Movement of professionals to emerging commercial clusters impacted rental price movements overall. Demand will gradually shift to more affordable destinations with vigorous development of more residential options.
City Highlights The separation of Telangana led to speculations of a revival in Hyderabad’s realty market. However, the positive impact-if any-is yet to be witnessed. Currently, the partition of the....
City Highlights Bangalore’s real estate market grew at an average rate of 5 per cent with both West and South regions recording 9 per cent growth in the Jul-Sep 2014....
City Highlights Chennai’s real estate recorded a decent surge in property prices by seven per cent last year. Continuing the growth trajectory in 2014, the city clocked three per cent rise....
Mumbai has been witnessing an overall slowdown with most localities witnessing degrowth or negligible rise in capital values in the quarter ending September compared to the quarter ending June this....
City Highlights The National Capital Region (NCR) mostly witnessed degrowth or stagnation in prices of residential apartments in the Jul-Sep 2014 quarter in almost all regions with the exception of....
City Highlights Real estate in the city continued to grow at an average of two percent in the last quarter. Once the slow progressing metro project takes off in earnest,....
City Highlights The average prices of residential properties in Pune grew by three per cent in the Jul-Sep 2014 quarter. Improved market sentiments kept demand sturdy and therefore, price trends....