Property prices in Mumbai up 2%
The latest 99acres.com Insite report shows rising rates during January-March 2015 over October-December 2014
The 99acres.com Insite quarterly report focusing on capital and rental price trends in the residential realty market across seven major cities of India revealed that property prices per sq ft in Mumbai have witnessed a growth of 2% in January-March 2015, after seeing an increase of 5% in October-December 2014. Rental values have witnessed an average surge of 8% in the quarter ending March 2015 as compared to January-March 2014. Residential apartments captured 97% of the market. Independent houses/villas witnessed majority supply in the posh south and in areas seeing rapid redevelopment.
Redevelopment activities continued with the same gusto this quarter as in October-December 2014. Amongst all the zones in the city, Navi Mumbai performed the best, witnessing 3% growth in January-March 2015 over October-December 2014. This was followed by MMR with 2% and Thane with 1% growth in property prices. Housing prices are expected to rise despite the city facing a severe demand-supply mismatch.
Commenting on the report, Narasimha Jayakumar, Chief Business Officer, 99acres.com, said, “Improving connectivity due to development of road and rail infrastructure is expected to infuse a fresh lease of life in Mumbai’s real estate which otherwise is grappling with low sales and conversion volumes. Affordable housing in Thane and Navi Mumbai are proving to be popular.”
(January-March 2015 vs. October-December 2014)
Mumbai Metropolitan Region (MMR)
- Sakinaka emerged as the top grosser in the MMR with 10% rise in property prices. The locality’s growth can be attributed to the upcoming Times Square Commercial Complex and improved connectivity due to the construction of the elevated metro corridor.
- Prices declined by a significant 7% in Vile Parle East. The locality witnessed a shift in demand to Andheri East, situated 3-km away, where properties were comparatively cost-effective.
- Capital values in Navi Mumbai rallied as a result of the proposed infrastructural projects such as airport, metro and monorail. Development of Special Economic Zones (SEZs) also boosted realty sentiments.
- Karanjade was the frontrunner with 9% surge in property prices due to the upcoming metro in Khandeshwar, located at a distance of 8-km.
- Shilphata, New Panvel and Kamothe in Navi Mumbai recorded dip between 2% and 9% due to demand spilling over to localities in proximity to the metro.
- The Thane metro, which will connect Wadala with Ghodhbunder Road, takes the credit for the area’s buoyant real estate.
- Bhiwandi was the top grosser in Thane, clocking 9% spike in property prices. In addition to having several residential projects slated for possession by 2018, the locality boasts of ample job opportunities.
- Prices in Vasant Vihar and Pokhran Road dropped by 7% to 8% due to demand slipping to affordable localities.
(January-March 2015 vs. January-March 2014)
Mumbai Metropolitan Region (MMR)
- As is the case with all the cities, Mumbai’s rental market performed better than the capital market.
- Matunga and Ambedkar Nagar were the frontrunners in the MMR, each witnessing a massive surge of 27% in rental values between the first quarter of 2014 and 2015.
- Rental rates in high-end southern localities such as Cuffe Parade, Colaba and Worli Seaface dropped by 15% since January-March 2014. These localities lost majority home seekers to comparatively affordable yet premium western suburban locations.
- Yari Road saw rental values declining by 12% due to its congested surroundings.
- Nerul emerged as the most preferred rental destination in Navi Mumbai clocking an annual rise of 24%.
- Koperkhairane was the only locality which registered a drop in rental rates. Values here dipped by 5% due to negative customer sentiments owing to under-developed social infrastructure.
- Kalyan (West) saw maximum appreciation in rental rates in Thane and areas beyond. Values grew to the tune of 22%.
- Rental demand was primarily impacted by proposed metro connectivity, reasonable rates as compared to neighbouring areas and well-developed social infrastructure.
Source :- DNA
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