Mumbai Insite Report Oct-Dec 2014

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City Highlights

The October-December quarter turned out to be a positive one for Mumbai. The average percentage increase in this period was five per cent across all zones as compared to an average increase of one per cent in the previous quarter. Positive consumer sentiments, new launches, developers announcing possession of projects and boost in infrastructure developments has triggered upward movement.

Mumbai-map

  • KEY INFLUENCERS

    • The part functioning of Sion-Panvel Highway, completion of Phase I of metro rail from Versova-Ghatkopar and Santacruz-Chembur link road (SCLR) in 2014 has spiked prices in MMR
    • Rental trend highlighted that most localities were on a growth trejectory in the Oct-Dec quarter, with Navi Mumbai and Thane being popular choices
    • Availability of residential units was maximum in the 1 and 2BHK category, more ready-to-move units as compared to under-construction units
    • The ongoing infrastructure develop­ments such as Navi Mumbai Interna­tional Airport, Phase II of Mumbai metro rail and construction of monorail is also triggering a rise in capital values
    • The far-reaching suburbs in Thane saw a downward trend as road infrastructure is yet to reach the desirable mark 

    Overall, the market sentiment has improved signaling a bright and hopeful year for Mumbai real estate. The change in government coupled with the proposed infrastructure developments is likely to spike prices further. Railways will be forming a big part of that change, which will lead to a rise in residential values even in suburbs due to improved connectivity.

  • Panvel, Thakur Village and Vile Parle (West) were the top performers in the Oct-Dec quarter, having witnessed a rise of 26 per cent, 24 per cent and 21 per cent respectively. Panvel, in Navi Mumbai, is on the growth trajectory owing to the impending Navi Mumbai international airport. Developers have been acquiring land parcels in this locality to build their projects.
  • Thakur Village and Vile Parle (West) have benefited due to the ongoing infrastructure developments contributing to the connectivity growth within Mumbai city limits. The Mumbai metro phase I, the ongoing monorail construction and the Eastern Express Highway link have triggered values in Mumbai Metropolitan Region (MMR). Other localities that benefited due to these developments among the top performers include Oshiwara, Vile Parle (East) and Wadala (East), with a 20 per cent, 18 per cent and 19 per cent rise respectively in capital values during the quarter.
  • Sion (East) saw a rise of 17 per cent in capital values during Oct-Dec 2014. This is attributed to Sion-Panvel Highway being under progress. The Highway, which is partfunctioning has been fully widened and new overpasses have also been built.

“Panvel, Thakur Village and Vile Parle (West) emerged as the frontrunners in Mumbai in the Oct-Dec quarter.”

  • Borivali (East) and Dadar (East), both saw a rise of 13 per cent in capital values, benefiting from the multiple infrastructure developments taking place in Mumbai. These locations also provide buyers an opening to invest within MMR at comparatively lower prices against prime localities in the zone.
  • Among the top non-performers, Bhandup (East) saw a 10 per cent drop and Yari Road and Sakinaka saw an eight per cent decline each. While these localities saw a downward trend in this quarter, a similar pattern was not observed over the previous quarters, highlighting the volatility of the overall property market. There is no particular reason for a downward trend in these localities in the latest quarter.
  • Rental trend has been very promising across all zones. A large number of migrants and locals still prefer to live on rent due to spiraling capital prices across most localities. Navi Mumbai and Thane have been the obvious choices for these tenants as suburbs guarantee lower rental values and good connectivity to prime office and technology hubs in Mumbai. This was the reason why most localities in these two zones witnessed an upward trend barring a few.
  • On the supply front, apartments constituted 98 per cent of the total property type, with builder floors and independent houses claiming a share of one-two per cent only across all zones. The 1BHK and 2BHK configurations witnessed maximum availability in all the three zones.

 

Top performers Mumbai Oct-Dec 214

Top performers in Mumbai (Oct-Dec 2014)

 

Top non-performers Mumbai Oct-Dec 214

Top non-performers in Mumbai (Oct-Dec 2014)

 

MUMBAI METROPOLITAN REGION > Central Suburbs, Andheri-Dahisar, Harbour, South and South West

  • MMR MapMMR is bearing the fruits of a successful quarter, both in terms of availability as well as prices. This can be attributed to several factors such as rising demand owing to festive season, new projects offering delivery and better connectivity. The region witnessed an increase in capital values to the tune of five per cent in Oct-Dec 2014 as compared to the previous quarter.
  • The three frontrunners in the latest quarter are Thakur Village, Vile Parle (West) and Oshiwara, witnessing an increase of 24, 21 and 20 per cent respectively. These localities have benefited owing to infrastructure developments including the Mumbai Metro Phase I Versova-Ghatkopar belt, change of government and fresh demand owing to the festive season.
  • Wadala East, Sion (East), Borivali (East) and Dadar (East) have all benefited owing to infrastructure developments. Mumbai saw multiple connectivity enhancements in terms of road and metro connectivity in 2014. The last quarter of the year has enjoyed the results of these developments in the form of increased capital values and demand. The construction of the monorail is on full swing. Anticipation of prices spiraling in MMR has motivated buyers and investors to purchase across Central Mumbai suburbs, South Mumbai and South west Mumbai.
  • India’s first monorail service is expected to commence operations from February 1, 2015 on the 8.9 km Wadala- Chembur section in the central-eastern suburbs of MMR. The Phase I stretch has seven stations. In the second phase, services will be extended to Sant Gadge Maharaj Chowk in South Mumbai.
  • The after effects of the Mumbai metro rail continued into the Oct-Dec quarter as localities such as Dahisar (West) and Jogeshwari (West) witnessed a rise of six per cent each while Goregaon (West) saw a rise of five per cent respectively. The 11 km stretch of Phase I of the Mumbai metro rail which connects Versova to Ghatkopar has improved the city’s east–west connectivity.
  • Borivali (West) and Kandivali (West) both witnessed a rise of eight per cent in the latest quarter. These two localities have seen a good growth each quarter in 2014 primarily because of improved connectivity and better laid out roads. Factors such as proximity to Link Road, connectivity to the Highway and strong public transport network have contributed to their growth.

“Thakur Village, Vile Parle (West) and Oshiwara were the frontrunners in the Oct-Dec quarter in 2014”

  • Goregaon (East) and Goregaon (West), which has gradually emerged as a coveted residential and commercial investment destination, saw a rise of 12 per cent and five per cent in capital values in this quarter respectively. This locality started out as a mid-income residential destination but now it is preferred over South Mumbai due to comparatively affordable prices. While the ongoing rates in Goregaon range from Rs 14,000-17,000 per sq ft, values in South Mumbai range from Rs 40,000-60,000 per sq ft. Proximity to Western Express Highway has made it more accessible to localities in South Mumbai and South west Mumbai.
  • Very few localities in MMR witnessed degrowth in the latest quarter. The ones that did reflect the volatility and unstable environment of the property market in the present times across the country. Despite values rising and demand picking up, the market is bearing the spillover effect of the previous years which is likely to reduce in this year. State governments pegging crores of rupees towards infrastructure development, developers launching large townships and expected rate cuts by Reserve Bank of India (RBI) will turnaround the property market this year.
  • Mahalaxmi and Santacruz (West) both saw a downfall of five per cent each while Kanjurmarg (East) fell by two per cent, continuing their downward trend in the Jul-Sep 2014 as well as Oct-Dec quarter.
  • In the rental space, most localities witnessed an upward trend, with Malad (West), Ghatkopar (West) and Dahisar topping the charts with a 12-13 per cent rise in the Oct-Dec quarter. Positive sentiments, better connectivity within MMR and a wide range of choice is resulting in an upward movement of rentals.

CAPITAL VALUES

Locality

Oct-Dec 2014

Jul-Sep 2014

Change

Andheri (East)

17150

16950

1%

Andheri (West)

22100

21500

3%

Bandra (East)

26900

28250

-5%

Bhandup (East)

10600

11800

-10%

Bhandup (West)

15250

15200

0%

Borivali (East)

15200

13450

13%

Borivali (West)

15000

13900

8%

Chembur (East)

17100

15400

11%

Cuffe Parade

66650

71050

-6%

Dadar (East)

33350

29600

13%

Dadar (West)

37550

36150

4%

Dahisar (West)

13700

12950

6%

Gamdevi

57800

51700

12%

Ghatkopar (East)

16150

15650

3%

Ghatkopar West

18050

17650

2%

Goregaon (East)

16500

14750

12%

Goregaon (West)

15500

14800

5%

Hiranandani Gardens - Powai

34300

31050

10%

Jogeshwari (West)

15250

14400

6%

Kandivali (West)

14000

13000

8%

Kanjur Marg (East)

7950

8150

-2%

kurla (west)

11900

12850

-7%

Mahalaxmi

40350

42450

-5%

Malad (East)

14000

12550

12%

Napean Sea Road

74700

66450

12%

Oshiwara

16650

13850

20%

Powai

19550

18750

4%

Sakinaka

15050

16300

-8%

Santacruz (West)

33350

35000

-5%

Sewri

32050

34150

-6%

Sion (East)

21300

18250

17%

Thakur Village

15900

12800

24%

Vikhroli (West)

18250

17050

7%

Vile Parle (West)

37600

31050

21%

Wadala East

22050

18600

19%

RENTAL VALUES

Locality

Oct-Dec 2014

Jul-Sep 2014

Change

Andheri (West)

51

47

9%

Bandra (West)

91

90

1%

Bhandup (West)

27

26

4%

Dadar (West)

92

100

-8%

Dahisar

19

17

12%

Ghatkopar West

37

33

12%

Goregaon (West)

40

37

8%

Lower Parel

106

96

10%

Mahalaxmi

114

104

10%

Malad (West)

36

32

13%

* Values represent average capital and rental per sq ft rates

SUPPLY ANALYSIS

Residential apartments were in abundant supply in MMR standing at 96 per cent of total residential units in the market. A majority of these were in the luxury segment followed by the affordable segment. 2BHKs outnumbered 1BHKs and 3BHKs overall.

MMR Supply property typeAvailability of Different Types of Property

  • It is no surprise that apartments form a major chunk of the property type in Mumbai, standing at 96 per cent in Oct-Dec quarter. The factors leading to abundance of apartments are lack of land availability in Mumbai Metropolitan Region (MMR). The same trend has been observed in Navi Mumbai and Thane, where apartments constituted 98 per cent of the total, with builder floors and independent houses comprising of one per cent each.
  •  The builder floors and independent houses both constitute two per cent of the total property type in the Oct-Dec quarter as well as the previous quarter.

MMR Supply budgetAvailability of Property in Different Budgets

  • The percentage distribution across all budget categories in MMR is varied for both the third and fourth quarter of 2014.
  • Of all the zones, MMR is the frontrunner in luxury housing supply, that ranges from Rs 1 crore to 5 crore, occupying 44 per cent of the total, followed by affordable housing (within Rs 40 lakh) standing at 22 per cent and high-income housing at 14 per cent.
  • Due to the premium localities present in MMR, most of the units available here are in the budget category of above Rs 1 crore. Some of these include Bandra, Andheri, Kurli, Khar, Santacruz and Juhu among others. These command premium values ranging from Rs 25,000-50,000 per sq ft.
  • High-income housing, ranging from Rs 60 lakh to Rs 1 crore came in third in terms of availability in MMR, standing at 15 per cent in the Jul-Sep and Oct-Dec quarter of 2014.
  • Mid-income housing falling in the budget range of Rs 40- 60 lakh offered fewer options standing at 10 per cent.
  • Ultra-luxury housing segment availability is nine per cent in the latest quarter, while Navi Mumbai and Thane both have zero or one per cent availability in this segment. This highlights that the demand for super premium properties is present only in developed localities of Mumbai.

MMR Supply RTM UCReady to Move vs. Under-construction

  • Bearing in mind that most localities within MMR are developed, the percentage of ready-to-move properties is more than under-construction. The maximum number of units available for possession are in the above Rs 5 crore budget range, standing at 72 per cent compared to 28 per cent of units available under construction in the fourth quarter of 2014.
  • In the other budget ranges as well, the ready-to-move properties constituted about 55-69 per cent while under-construction supply was 31-45 per cent in the Oct-Dec quarter. Another reason for under-construction units being restricted in supply is limited construction taking place within MMR owing to the lack of space and absence of initiative towards redevelopment.
  • The trend of ready-to-move units being higher in availability remained the same even in BHK configuration. 1BHK-3BHK ready-to-move units were from 61-65 per cent while the under-construction unit supply was from 35-38 per cent in the Oct-Dec quarter.
  • Even in Jul-Sep 2014, the ready-to-move units supply was more as compared to the availability of under-construction properties. The percentage split was on similar lines as the fourth quarter of 2014.

MMR Supply BHKBHK-wise Distribution of Property

  • For the latest quarter, 2BHK emerged as the most supplied unit for apartments, at 38 per cent followed by 1BHK at 36 per cent in the fourth quarter of 2014. 3BHK constituted about 21 per cent of the total supply in this quarter and 4BHK was a meagre five per cent.
  • In the Jul-Sep quarter, the percentage split between the BHK configurations was similar to the Oct-Dec quarter, with either no change or a one per cent increase/decline.

“Ultra-luxury housing availability stands at nine per cent in MMR while units in this segment are either absent or negligible in Navi Mumbai and Thane”

 

MUMBAI > Navi Mumbai

Navi Mumbai has witnessed an average growth of six per cent in Oct-Dec 2014 compared to the previous quarter. Most localities across this region have witnessed an increase indicating a turnaround this quarter. Many residential projects offered possession resulting in increase in values in Navi Mumbai. Developers bought land parcels to start the next round of construction in some localities such as Panvel, Ulwe, Kharghar and Koperkhairane. This led to a rise in capital values across this sub-city.

  • Navi Mumbai MApThe top performers in Navi Mumbai in the Oct-Dec quarter as compared to Jul-Sep quarter are Panvel and Sector-10, Kharghar, having witnessed a rise of 26 per cent and 14 per cent, followed by Seawoods and Ulwe that saw a 12 per cent and nine per cent hike in capital values. With the Navi Mumbai International Airport, Panvel and Ulwe have been attracting developers who are purchasing huge land parcels for residential projects. Some of these prominent developers include Marathon Group, Kalpataru, Hiranandani, Indiabulls and Arihant Universal.
  • The Panvel railway junction is an important connecting point as the Harbour line from Mumbai CST, central line from Karjat, western freight corridor from Jawarharlal Nehru Port Trust (JNPT) and the Konkan railway line from Mangalore meet at Panvel. This has made the locality attractive for all migrants who have to travel to to various destinations.
  • Kharghar, on the other hand, is one of the top localities in Navi Mumbai and has witnessed an upward trend in the last one year. Boasting of entertainment options, good connectivity, education and affordable prices, the locality is a dream haven for developers. It has a number of under-construction and ready-to-move residential and commercial projects. It is also home to the reputed Tata Memorial Hospital (Cancer Research Institute). Sector 10 Kharghar commands prices in the range of Rs 7,900- Rs 9,400 per sq ft.

“Part functioning of Sion-Panvel Highway and Mumbai Metro Phase I are triggering values in Navi Mumbai.”

  • Belapur and Koperkhairane witnessed an increase of 8 per cent and seven per cent in the latest quarter compared to the Jul-Sep quarter. The Thane-Belapur belt, known as an industrial belt, is evolving into a service industry belt gradually. Belapur is a chief business district of Navi Mumbai, but is now home to many colleges and offices. The ongoing infrastructure projects is leading to a positive impact on the localities within Navi Mumbai, primarily Ulwe, Panvel, Koperkhairane, Kharghar, Belapur, Vashi and Sanpada. These projects include the Sewri-Nhava Sheva sea link and Navi Mumbai metro project with stations in Belapur, Kharghar, Pendhar, Taloja, Kalamboli and Khandeshwar. Additionally, the Sion-Panvel Expressway junction in Sion to Kalamboli junction in Panvel, leading to the Mumbai- Pune expressway will boost property prices further.
  • As of September 2014, stretch of the highway east of Vashi Bridge within Navi Mumbai has been fully widened and concretized to 10 lanes (5 lanes in each direction). New overpasses have been built at Sanpada railway station, Nerul, Uran phata and Kamothe. The part functioning of the Sion-Panvel Highway has led to a rise in capital values in Sanpada and Nerul as well, rising by seven per cent each in the Oct-Dec quarter.
  • Taloja, Kalamboli, Ghansoli, Roadpali and Airoli all saw a rise of four per cent to five per cent in capital values during the fourth quarter of 2014. As compared to the capital value increase in the Jul-Sep quarter, the Oct-Dec quarter has been promising for Navi Mumbai localities. This is indicative of an overall positive buyer sentiment triggered by a change in government and huge boost in social and civic infrastructure.
  • Vashi, which had witnessed a fall of eight per cent in the Jul-Sep quarter, saw a rise of seven per cent in Oct-Dec 2014. This turnaround can be attributed to developers acquiring land parcels, announcing projects in this quarter and The City and Industrial Development Corporation of Maharashtra (CIDCO) taking measures to improve social infrastructure in Vashi. Some of these include road widening, redevelopment of dipilidated buildings in Vashi and improved connectivity via the service lanes to the between localities that are close to each other.
  • The localities that witnessed a fall in capital values in Oct-Dec 2014 in Navi Mumbai are Khandeshwar and Shilphata, with a one per cent and five per cent decline. The growth story in Navi Mumbai is yet to reach a far-reaching suburb like Shilphata, which is located at the junction of Old Mumbai-Pune Road. However, when the locality will develop, it will be the bridge between Thane and Navi Mumbai.
  • The rising concerns of better civic infrastructure and traffic conditions are being addressed by CIDCO and the state government. With the Prime Minister Narendra Modi laying the foundation stone for the Rs 4,000 crore special economic zone at Jawaharlal Nehru Port Trust (JNPT) last year in September, real estate prices in Navi Mumbai are set to rise further.
  • The rental scenario in Navi Mumbai continued its upward trend in the Oct-Dec quarter as well, similar to the previous quarter. Being an affordable location, it does not lose its charm for the mid-income service professionals who are always on the lookout for well-connected as well as affordable destinations. This spelled good news for localities such as Sanpada, Seawoods and Kharghar that saw a rise of 14, 10 and eight per cent respectively in the fourth quarter of 2014. While, Nerul too witnessed an increase of 10 per cent in rental values in the Oct-Dec 2014.

CAPITAL VALUES

Locality

Oct-Dec 2014

Jul-Sep 2014

Change

Airoli

9400

8950

5%

Belapur

10000

9300

8%

Dronagiri

3850

3850

0%

Ghansoli

8500

8150

4%

Kalamboli

5600

5400

4%

Kamothe

6250

6100

2%

Karanjade

4500

4400

2%

Khandeshwar

6250

6300

-1%

Kharghar

7850

7400

6%

Koperkhairane

9800

9150

7%

Nerul

11750

11000

7%

New Panvel

4800

4650

3%

Palm Beach

17250

16450

5%

Panvel

5650

4500

26%

Roadpali

5800

5550

5%

Sanpada

12350

11700

6%

Seawoods

11200

10000

12%

Sector 10 Kharghar

8550

7500

14%

Shilphata

4950

5200

-5%

Taloja

4350

4200

4%

Taloja Panchanand

4400

4200

5%

Ulwe

5350

4900

9%

Vashi

11550

10750

7%

RENTAL VALUES

Locality

Oct-Dec 2014

Jul-Sep 2014

Change

Kamothe

9

9

0%

Kharghar

14

13

8%

Nerul

23

21

10%

Sanpada

24

21

14%

Seawoods

23

21

10%

* Values represent average capital and rental per sq ft rates

SUPPLY ANALYSIS

The affordable housing segment saw maximum availability at 30 per cent in Navi Mumbai followed by mid-income and high-income housing. Supply will witness a major boom in future with many developers launching new townships in this sub-city. Another important factor contributing to the increase in units is the boost in infrastructure developments.

Navi Mumbai supply Property typeAvailability of Different Types of Property

  • Apartments form 98 per cent of the total property type in the Oct- Dec quarter as well as in the preceding quarter in Navi Mumbai. Most developers who are expanding in Navi Mumbai are rolling out townships or mixed-use projects only. Due to scarcity of land and absence of the builder floor concept in general all over Mumbai, the other categories are not so popular.

Navi Mumbai supply BudgetAvailability of Property in Different Budgets

  • The affordable housing segment within Rs 40 lakh budget range enjoyed maximum availability in the Oct-Dec quarter, standing at 30 per cent. However, the split between affordable, mid-income and high-income housing is well distributed. With most service-class professionals choosing to live in apartments within Rs 40 lakh, increasing number of developers are launching projects in this budget range.
  • Mid-income and high-income housing are also popular budget categories in terms of supply. This can be attributed to the rising demand in Navi Mumbai for end-use or investment as the sub-city is promising good returns and rental yields as well. In lieu of the impending developments such as Navi Mumbai international airport and metro rail project, the developers are likely to increase the project launches in these categories to match the rising demand.
  • High-income housing or Rs 60 lakh-1 crore witnessed an availability of 28 per cent followed by mid-income housing (Rs 40-60 lakh), at 26 per cent. Availability remained the same across all budget ranges in the Jul-Sep quarter.
  • The high-end housing segments, catering to the premium buyers, is limited in availability in Navi Mumbai. This could be because the primary inhabitants in this part of the city are service professionals, college students and low-income individuals working with the government sector.
  • Luxury housing with apartments in the budget range of Rs 1 crore to Rs 5 crore witnessed the least availability, with 16 per cent units in this category. A major reason for this is that the demand for luxury houses is limited in Navi Mumbai, therefore, developers offer homes catering to the affordable segment rather than the premium segment.

Navi Mumbai supply RTM UCReady to Move vs. Under-construction

  • The availability of under-construction units is maximum within the Rs 40 lakh budget, standing at 63 per cent. This is because of the rampant product launches in this segment by reputed developers. The top ones include Lodha Group, Akshar Developers, Lakhani Builders Pvt Ltd, Galaxy Group and The Wadhwa Group among others. The ready-to-move units in this segment was the least compared to other budget categories at 37 per cent.
  • In the Jul-Sep quarter, the split of supply in the affordable housing segment was 60 per cent (under-construction) and 40 per cent (ready-to-move).
  • The maximum ready-to-move units were available in the above Rs 5 crore budget category, standing at 85 per cent, followed by 70 per cent in the Rs 1-5 crore budget range in the Oct-Dec quarter. Strikingly, the ready-to-move units in the above Rs 5 crore budget was only 25 per cent in the Jul-Sep quarter. This highlights a large number of units that were due for completion in this budget range offered possession in last quarter of the 2013-2014 (Calendar Year).
  • In Oct-Dec 2014, supply percentage was predominant in the ready-to-move segment. However, the split was relatively balanced in the Rs 40-60 lakh budget range. The ready-to-move units stayed at 56 per cent while the under-construction properties were about 44 per cent in the Oct- Dec quarter.
  • In the Rs 60 lakh-Rs 1 crore budget category, there were 77 per cent ready-to-move units in the Jul-Sep quarter while this percentage came down to 68 per cent in the fourth quarter of 2014.

Navi Mumbai supply BHKBHK-wise Distribution of Property

  • The frontrunner in terms of supply in Navi Mumbai was the 2BHK configuration, standing at 47 per cent in the Oct-Dec quarter and 48 per cent in the preceding quarter.
  • The 1BHK category came in second, occupying 42 per cent in the Oct-Dec quarter as well as the Jul-Sep quarter, highlighting that smaller apartments are more in demand.
  • As the demand for the 3BHK category is limited, so is the supply limited to 10 per cent in Oct-Dec and Jul-Sep quarter.
  •  Most units are ready-to-move, ranging from 52-69 per cent, with the maximum supply contributed by the 4BHK.

“2BHK units saw maximum supply followed by 1BHK in Navi Mumbai”

  

MUMBAI > THANE AND BEYOND

Region around Thane and beyond has witnessed an average rise of three per cent in capital values in the Oct-Dec quarter compared to an average rise of two per cent in the preceding quarter. Similar to Navi Mumbai, Thane too saw limited localities that witnessed a downward trend in this quarter. Investors and buyers are betting big on Kalyan-Dombivali belt. This is because of affordable locations that fall in the periphery of this belt as well as proposals that are earmarked for future in this region.

Thane and beyond map

  • The average percentage rise was not as significant in Thane as in Navi Mumbai and MMR. However, the growth in this sub-city has been consistent over the last two quarters. This can be attributed to the rising number of developers launching residential and commercial projects here. Some of these include the Lodha Group, Nirmal Lifestyle, Raunak Group, Laxmi Housing Builders & Developers and Mehta Group, among others.
  • The rise in capital values in MMR is the primary reason of a shift in demand and rise in values in Thane and beyond region. In addition, a proposal for extending the Navi Mumbai metro rail to Kalyan has pumped up the prices as well as demand. Considering the prospects of development in Thane and Ghodbunder road area, this extension proposed a metro in the Thane city- Teen Haat Naka- Kaapurbavdi- Ghodbunder road area.
  • The frontrunners in Oct-Dec 2014 were Nallasopara, Bhayander (East) and Bhiwandi. These localities command capital values in the range of Rs 2,800-7,000 per sq ft which are most affordable in this part of the city. Nallasopara is situated just after Mira Road. It is well-connected to Mumbai through the Western Express Highway. The locality is yet to see internal road infrastructure development but availability of land has led to an investment from the developers. It is a promising locality owing to its scope of growth.
  • The Nallasopara-Virar Link Road is under construction and the link road to Vasai also has been proposed. This is leading to positive real estate growth in this locality. The start of 2015 spells good news for the frontrunners as Mumbai Metropolitan Region Development Authority (MMRDA) has plans to enhance the civic infrastructure in these localities.
  • Balkum, Boisar and Ghodbunder Road saw a rise of nine per cent each in capital values in the Oct- Dec quarter. These three localities are home to many upcoming residential projects by reputed developers such as Runwal Group, Lodha and RNA Corp. Developers are rolling out projects in these locations to capitalize on the rising demand, which is in turn is spiking values in these locations.

“Most localities in Thane saw a rise in capital values highlighting that suburbs have become the popular choice.”

  • Other upcoming destinations that have seen a rise in values in Oct-Dec 2014 include Ambernath, Naigaon (East), Khopoli and Mumbra. Although cut off from main hubs of Thane, these locations boast of land availability and affordable values. The capital values in these locations range from Rs 3,000-5,000 per sq ft. Such localities help developers squeeze the costs of construction as they are still under-developed, which is making it feasible to set up large townships here. However, the issues such as internal road infrastructure and transport is a challenge which the municipal authority will apparently be addressing.
  • Vasind, which was a frontrunner in the Jul-Sep quarter, witnessed a downfall in the Oct-Dec quarter by 12 per cent. The rising popularity of other localities is pushing demand from the more developed locations within the suburbs to developing locations. This has instilled fresh supply into the market in varied localities.
  • Other localities that saw a downfall in the Oct- Dec quarter include Teen Haath Naka, Vasai Road and Hiranandani Estate, witnessing a seven per cent, four per cent and three per cent decline respectively. Hiranandani Estate is a coveted project in Thane, however, the launch of new projects by local as well as reputed builders such as RNA Corp, Lodha Group and Rustomjee Group is leading to stagnancy in capital values in the existing projects.
  • Ulhasnagar and Vasai West saw a fall of four per cent and three per cent respectively in the Oct-Dec quarter. There were several localities in Thane that saw no change in the capital values in the fourth quarter of 2014, highlighting the stagnant growth in some areas. These include Patlipada, Pokharan Road, Neral, Vasai and Hiranandani Meadows.
  • Rental trends saw Ghodbunder Road and Thane West witnessing the maximum rise of six per cent and five per cent respectively in the fourth quarter of 2014. Thane West had witnessed a similar price rise in the Jul-Sep quarter, while Ghodbunder Road saw no change in the preceding quarter. These localities have been promising in terms of capital values as well as they are the obvious choices for migrants to live on rent or buy due to better connectivity and road network.

CAPITAL VALUES

Locality

Oct-Dec 2014

Jul-Sep 2014

Change

Adharawadi

4875

4850

1%

Ambernath

3450

3200

8%

Badlapur

3300

3250

2%

Badlapur (East)

3250

3100

5%

Balkum

11050

10100

9%

Bhayander (East)

7750

7000

11%

Bhiwandi

3100

2800

11%

Boisar

2900

2650

9%

Dhokali

10800

10400

4%

Dombivili (West)

6100

6000

2%

Ghodbunder Road

10000

9150

9%

Hiranandani Estate

13025

13450

-3%

Hiranandani Meadows

18525

18550

0%

Kalwa

9000

8500

6%

Kalyan (East)

4175

4550

-8%

Kalyan (West)

5900

5500

7%

Kapurbawadi

10700

10250

4%

Karjat

2675

2700

-1%

Kasar vadavali

8650

8200

5%

Khadakpada

5700

5550

3%

Khopoli

2900

2700

7%

Kolshet Road

10400

10050

3%

Manpada

11250

10750

5%

Mira Bhayandar

7300

7000

4%

Mira Road

7250

7000

4%

Mumbra

3250

3050

7%

Naigaon (East)

4150

3850

8%

Nalasopara East

4500

4200

7%

Nallasopara

4500

4000

13%

Palghar

2800

2700

4%

Poonam Gardens

8100

7300

11%

Teen Haath Naka

13350

14400

-7%

Thane (East)

10925

10650

3%

Titwala

4000

3600

11%

Vartak Nagar

12750

12150

5%

Vasai Road

4950

5150

-4%

Vasai West

5650

5800

-3%

Vasant Vihar

11975

11900

1%

Vasind

2850

3250

-12%

RENTAL VALUES

Locality

Oct-Dec 2014

Jul-Sep 2014

Change

Hiranandani Estate

24

23

4%

Hiranandani Meadows

25

24

4%

Manpada

19

19

0%

Ghodbunder Road

19

18

6%

Thane West

23

22

5%

* Values represent average capital and rental per sq ft rates

 

SUPPLY ANALYSIS

Luxury housing was the most popular segment in terms of availability in Thane and beyond. Many reputed developers are rolling out luxury townships here to capitalise on the growing property market. Although the supply for 2BHK apartments was maximum yet the split was evenly distributed between 1, 2 and 3BHK apartments.

Thanne and beyond supply property typeAvailability of Different Types of Property 

  • Just like in Navi Mumbai and MMR, apartments occupied the maximum share in terms of availability, standing at 98 per cent in Thane during the Oct-Dec quarter. Builder floors and independent houses both made up for one per cent of the total supply.

Thanne and beyond supply budgetAvailability of Property in Different Budgets 

  • Thane witnessed maximum availability in the luxury housing (Rs 1-5 crore) category, at 41 per cent, followed by high-income housing at 36 per cent. Most developers across Thane such as Lodha Group, Puranik Builders, Rustomjee, Hiranandani, Runwal have already set up or will be launching large luxurious townships in Thane which is creating demand for properties in the luxury segment.
  • Mid-income housing came in third, with 17 per cent units available in this segment in the Oct-Dec quarter. Comprising of properties in the Rs 40-60 lakh budget, this segment is likely to grab more share in terms of availability as builders have started launching projects catering to this budget range.
  • In the Jul-Sep quarter, however, an equal percentage of 37 per cent availability was witnessed in the high-income and luxury housing budget range. The availability percentage across different budget categories was similar in both the quarters, highlighting that supply has not witnessed a significant change quarter-on-quarter.
  • Only one per cent of the supply was witnessed in the ultra-luxury housing or above Rs 5 crore budget range in Thane in the fourth quarter of 2014 as well as the Jul-Sep quarter. 

Thanne and beyond supply RTM UCReady to Move vs. Under-construction

  • Across all budget categories, ready-to-move units were more in number than the under-construction units, with the ultra-luxury housing availability standing at 86 per cent. The trend of higher availability of ready-to-move properties was observed across all zones. This indicates that the construction of projects is lesser in number presently as the market has just begun to pick up again after the slowdown witnessed in the past year.
  • In the other budget categories, ready-to-move units ranged from 64-73 per cent in the Oct-Dec quarter. Similar trend was observed in Jul-Sep 2014, wherein ready-to-move units dominated the real estate market in Thane across all budget categories, ranging from 67-75 per cent.
  • The least number of units that were under-construction in Oct-Dec and Jul-Sep quarter, were from the above Rs 5 crore category, standing at 14 and 27 per cent respectively.
  • The high-income housing (Rs 60 lakh-1 crore) saw a supply of 73 per cent ready-to-move units in the fourth quarter of 2014 compared to 27 per cent units in the under-construction segment.

Thanne and beyond supply BHKBHK-wise Distribution of Property

  • The split of supply across the BHK configuration was evenly distributed between 1, 2 and 3BHK apartments. Similar to Navi Mumbai and MMR, the maximum supply was witnessed in the 2BHK category in Thane as well, occupying 44 per cent of the total during the latest quarter. 1BHK apartments followed second, with 33 per cent supply and 20 per cent in the 3BHK category.
  • Many luxury townships that developers are launching in Thane are offering 1, 2 and 3BHKs leading to an increase in supply of these apartments. All these three configurations are witnessing similar prominence in Thane primarily because demand has been constant across these three categories.
  • The least percentage of supply, standing at two per cent was occupied by the 4BHK units in both the quarters.
  • As for the supply of ready-to-move units, 1BHK category saw the maximum supply, at 77 per cent, followed by 4BHK units that saw a supply of 70 per cent in the latest quarter. In the Jul-Sep quarter, the percentage of ready-to-move units in 1BHK category were 80 per cent and 67 per cent for 2BHK.
  • Under-construction remained the less popular category in Thane too, with the supply ranging from 20-39 per cent in this segment during Oct-Dec and Jul-Sep quarter. 

“Rs 1-5 crore budget range saw maximum supply in Thane with renowned developers offering luxury townships”

 


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  • Nibby April 14, 20161:07 am

    Never seen a better post!

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  • Zaiya April 14, 20162:32 am

    As Charlie Sheen says, this article is “WINNING”

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