The uncertainty over real estate is palpable, what with buyers and sellers sitting on fences and wondering when and how to sell, rent and buy. A pleasant encounter with Priya Maheshwari of Properji.com, a real estate analysis venture that renders unbiased analysis of the Indian sector (now acquired by Magicbricks.com), introduced me to the Magicbricks.com PropIndex.
The PropIndex is a quarterly-published analysis of real estate across 14 key Indian tier I and tier II markets. It’s not just a ready reckoner for property, as per its analysis of the quarter but also a wealth of information on infrastructure, buying-selling patterns and more – to keep you abreast of the real estate situation in Mumbai’s burgeoning and dynamic market.
To quote Sudhir Pai, CEO of Magicbricks.com, from the Oct-Dec 2016 report, ‘The Indian real estate sector has entered an uncharted territory, and the lack of market liquidity has made it extremely difficult to gauge the pricing in the market through conventional means. In such a scenario, a tool like PropIndex remains one of the few indicators, capable enough to peer through the fog.’
Needless to say, Goregaon east is one of the most dynamic areas in the city, when it comes to real estate development. Not only have key developers established their brand here but have also paved the way to several second-rung builders.
I have, with the kind permission of Magicbricks.com, shared a few excerpts from the latest PropIndex, that I think will be relevant to readers of Goregaon Highway Pulse. You can read the complete Oct-Dec 2016 PropIndex reports for all the information you need.
What is the PropIndex?
The PropIndex gives you locality-wise property values in two forms – as locality price ranges for sale and rent in the annexure to every city with additional information on whether it has gone up or down in the quarter, and what is the rental yield in that locality.
Mumbai: Key Takeaways
The City Index saw a mild 0.1% decline as compared to the last quarter. The Oct-Dec 2016 quarter had more localities with price decline. Overall, 52% localities saw an average price decrease of 2.1%, pushing down the Oct-Dec 2016 Index by 1.2%, while the balance 48% localities saw price rise of 2.3%, pushing up the Index by 1%
In geographical terms, the North zone in Mumbai consisting of suburban areas beyond Andheri, and which account for 45% share of consumer preference and 48% share of supply in the secondary market, saw a price decline of 0.2%
Mumbai Real Estate Synopsis
Trickling sales number never seemed to have fettered Mumbai’s enthusiasm. This could be because it always has growing job opportunities and every year somehow flexes its already burdened land assets to accommodate the migratory populace. As such, consumer demand for houses is a constant feature in its real estate.
It is anticipating around 16 million sq ft of fresh office space by the end of next year. Before this year completes, another 8.5 million sq ft space will be added. New offices means new workforce which in turn means more demand. The capital as well as the rental market around these office spaces will get a boost once they get operational.
Infrastructure updates all throughout the year played a pivotal role in keeping the enthusiasm going in the real estate market.
Some of the infrastructure highlights were:
1) Mumbai Port Trust freed 150 hectares from its land parcel for infrastructure projects such as entertainment hubs and all-weather marina project
2) MoEF granted approval to the 22 km Sewri-Nhava Sheva Mumbai Trans Harbour Link will displace the stress on urban habitation in South Mumbai
3) BMC transferred 17 land parcels to the Mumbai Metro Rail Corporation for construction of the 32 km Mumbai Metro III
4) The PWD approved the BMC’s coastal road project to shift tetra pods from Worli to Marine Drive alignment to the proposed coastal road. Other upcoming projects are the Metro 7, Metro 2B, and Metro 4 corridors
5) MHADA offered close to 972 affordable houses in areas such as Tungwa Pawai, Goregaon and old Magathane
6) BMC started building assisted living (old-age homes), rental housing for women and child care centres.
Another development is the coming together of Maharashtra government and Canada for urban infrastructure development. The plan seeks to introduce companies, solutions and financing from Canada for state-led infrastructure projects to contribute to rising standards of living in the state.
Localities that saw demand from buyers are Brahman Wadi, Kings Circle, Pratikhsha Nagar.
Areas which saw an increase in the housing inventory includes Godrej Station Road Colony with 33.7% growth, Mazagaon with 24.1% growth, Sindhi Colony with 21.7% growth, etc.
Northern suburbs continue to remain preferred by consumers. The North zone accounts for almost 50% share of consumer preference and supply in the secondary market.
To read the latest Magicbricks.com PropIndex click here