Govt approves four new infra projects in Mumbai
The State government approved infrastructure projects such as the expansion of Mumbai-Pune Expressway, and development of the Bandra-Versova sea link, Thane Creek Bridge 3, and Bhiwandi-Kalyan-Shil-Phata road. In addition, two new metro rail projects – Dahisar to Mira Bhayander and Andheri-Chhatrapati Shivaji Maharaj International (CSMI) airport have also been approved.
State proposes 1 percent surcharge on stamp duty
The State government’s proposal to levy one percent additional surcharge on realty transactions in addition to the existing five percent stamp duty is expected to inflate property values, thus hampering consumer sentiment and posing as a hindrance to sales.
MahaRERA takes stringent action against unregistered projects
Tightening the noose on local authorities, MahaRERA released 85 letters to the commissioners and collectors to take quick action against unregistered projects. In the last one year, nearly 16,000 projects have been registered under MahaRERA. The step is expected to expedite the registration of the remaining projects in the State.
MahaRERA uses GIS technology to map realty projects
The successful mapping of over 4,500 registered projects by Geographical Information System (GIS) helped buyers use the ‘view on map’ facility on MahaRERA’s website. The technology is instrumental in providing details regarding social infrastructure available near the projects, helping homebuyers finalise their purchase.
Mumbai to witness single-window approval system soon
The proposal to execute single-window clearance in Mumbai cheered stakeholders as it will expedite the building approval system and keep a check on corruption. Faster approvals and smoother completions will help reinstate the faith of homebuyers who are dismayed by incessant project delays.
Mumbai’s real estate market seemed to have regained momentum with new launches doubling in numbers in Jul-Sep 2018 in comparison to the same quarter previous year. Thane bagged the maximum share of new projects launched in the city. The stake of new affordable housing inventory also rose close to 60 percent in the quarter. Overall, the city recorded a growth of seven percent in total availability of new and resale apartment stock.
While unsold inventory, particularly in the higher budget segments, kept a downward pressure on average property values in most regions, some pockets in Thane managed to record modest appreciation in average capital ‘asks’. Housing demand gained steam and sales finally started recovering, but not enough to give developers the confidence to alter 'ask' rates significantly. Some resale heavy pockets in Navi Mumbai and South-Central markets also witnessed price corrections up to five percent due to sluggish offtake of the existing inventory. The rental segment, however, performed well across Mumbai, Navi Mumbai and Thane, recording an average growth of five percent, YoY.
Strong hold of MahaRERA ensured that the developers adhered to the mandates, buoying buyer sentiment and ensuring growth in housing demand in the ensuing quarters. While Ganesh Chathurti had minimal impact on the sales volume, the upcoming Navratri and the subsequent Diwali months may witness developers rolling out attractive offers to augment sales.
Navi Mumbai’s real estate scenario is set for a new beginning as the groundwork for the International Airport has been laid. Despite a minimal one percent increment in average weighted prices, QoQ, the positive market sentiment highlights the start of a new phase of development in Navi Mumbai’s real estate landscape.
Navi Mumbai bloomed with real estate activity and the launch of several affordable residential projects. Localities closer to the upcoming airport benefited the most with increased demand from bugdet homebuyers.
Panvel, Kharghar and Ulwe remained the popular residential hubs and significantly leveraged the ongoing international airport. Panvel, which will be the closest to the airport, recorded a four percent increase in capital prices, QoQ. The planned Karjat-Panvel suburban rail corridor will go a long way in boosting Panvel’s real estate market further.
Other upcoming infrastructure projects such as Mumbai Trans Harbour Link (MTHL), Karjat-Panvel corridor, Mumbai-Panvel-Konkan Railway Corridor played a key role in keeping the buyer sentiment positive in Navi Mumbai.
Several parts of the region are being developed into global commercial hubs, supporting growth across the residential segment as well. Panvel remained one of the fastest growing office hubs of Navi Mumbai – home to IT/ITeS companies, MNCs, BFSI and government offices.
Kharghar came in second with a two percent rise in capital values. Increased commercial development around the neighbouring region as well as the new six-lane speed corridor being set up for direct connectivity from Kharghar to the Navi Mumbai International Airport are other demand propellers.
The rental market in Navi Mumbai flourished due to the availability of affordable housing options starting from Rs 25,000 per month for 1BHK configurations. Average weighted rentals were up by seven percent, YoY, highlighting an influx of working professionals in the city. Most of the localities including Roadpali, Sanpada, Koperkhairane, Ghansoli and Taloja saw an upsurge to the tune of 7-9 percent in rental prices in Jul-Sep 2018 vs. Jul-Sep 2017. Infrastructure projects, availability of affordable residential units and construction of the new international airport are some of the primary drivers.
THANE AND BEYOND
Housing demand in Thane continues to grow on the back of competitively priced housing inventory and improving infrastructure. With over 60 percent of the total new launches this quarter, Thane also had the maximum affordable stock across MMR. Property values recorded negligible growth and are not expected to alter a lot in the ensuing quarters, too. The belt, however, is poised to see more growth with developers venturing into the region with new offerings in the time to come.
Proposed infrastructure projects, including Metro Line 4 (Kasarvadavali-Wadala) and a 42 km-long light rail network, are set to propel the real estate sentiment in Thane. Reputed players in the real estate sector are expanding their presence in the city, targeting low and middle-income homebuyers.
Units configured as 1BHK apartments continued being on the top of the popularity charts. With several residential projects being built across Ghodbunder Road, the supply of such compact homes is also set to rise.
Several new projects by reputed players covered the residential landscape of Patlipada. The locality clocked a four percent increment in capital values, QoQ. This has also ensured a parallel rise in rental values, to the tune of seven percent, YoY. Availability of housing options in the locality, particularly affordable-luxury projects, has left the buyers spoilt for choices.
Dombivli (East), a developing residential locale in Thane, gained prominence due to price-competitive housing inventory. The locality saw an increment of two percent in capital prices, QoQ. The recently opened Thakurli-Dombivli Railway over Bridge (ROB) – connecting the eastern and the western parts of the city, emerged as a major growth driver for the area.
Other popular localities that feature in the capital growth graph include Ambernath, Kasarvadavali, Manpada and Badlapur – all boasting of pocket-friendly apartments, strong connectivity and proximity to other regions of Mumbai. RERA-compliant projects in these localities instilled confidence amongst buyers and spurred realty demand.
Thane witnessed an increase of five percent in average weighted rental ‘asks’, YoY, with Vasai, Patlipada and Kalyan (West) leading the charts. Infrastructure projects such as Wadala-Ghatkopar-Thane-Kasarvadavli Metro corridor, commercial and retail expansion contributed to the growth.
Unlike Navi Mumbai and Thane, Mumbai core city continued to be in a state of lull. Despite price corrections in several housing pockets and lucrative offers by the developer fraternity, the city reeled under the pressure of unsold inventory and MahaRERA’s stringent rules. While the region witnessed some high-end new launches, average property prices maintained status-quo this quarter.
Property sales in Mumbai remained stagnant in the Jul-Sep 2018 quarter despite the festive fervour catching up. Increased preference for affordable properties in Navi Mumbai and Thane contributed to the sluggish capital scenario in the city.
Braving the overall impasse, some localities boasting of strong connectivity junctions and fresh real estate projects claimed the top spot on the capital growth graph. Rapid housing demand met restricted supply in these locations, leading to an upward price movement, QoQ.
Santacruz (East) featured as the frontrunner with a five percent rise in capital prices owing to its proximity to Bandra Kurla Complex (BKC) - the emerging commercial hotspot in Mumbai. Among the developed areas in the city, Santacruz (East) qualifies as the obvious choice for homebuyers owing to its superior connectivity via Milan flyover and Western Expressway.
The premium housing hub, Juhu, too, recorded a five percent increment in capital prices during the quarter. Home to celebrities and High Net-worth Individuals (HNIs), Juhu’s skyline is dotted with new premium projects by leading players such as Kalpataru, Rustomjee and Suntech – which have helped escalate overall capital rates.
A popular western suburb of Mumbai, Jogeshwari (East) is thriving on the launch of large-scale residential projects, connectivity to the airport and proximity to rapid infrastructure projects such as metro. The locality chronicled a four percent hike in capital prices, QoQ.
The rental picture tilted towards localities that enjoy robust connectivity and are booming with new residential projects. Average rentals rose by five percent in Jul-Sep 2018, as compared to the same period a year ago.
Pali Hill that witnessed a 10 percent hike in rentals, YoY, benefitted from its proximity to Bandra and a high volume of rental demand. Working professionals from banks and corporates, who choose to live closer to Bandra, sought a home in Pali Hill. While a 1 BHK unit starts from Rs 80,000 per month, a 2 BHK is available between Rs 1-1.5 lakh per month.
Sion (East) followed suit with a nine percent increase in rentals. Premium high-rises cover the skyline of the locality in addition to improved connectivity.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.