Embed Size (px)
Citation preview
This has been one of the more interesting quarters in the residential realestate market. Data indicates that markets are looking for a sense ofdirection. Weak sentiment because of economic factors as well as theupcoming elections has dampened investor enthusiasm. However, this is thefirst time that the end user has shed inhibitions and got into the driver’s seatin the residential property market. Read this quarter’s PropIndex analysisalong with the Housing Sentiment Index (HSI). The HSI has been jointlyreleased by Magicbricks and Indian Institute of Management, Bangalore. Thefirst of its kind in the market, the HSI tracks property buyer sentiment acrossthe country by way of detailed questionnaires. It clearly indicates that whilethe consumer is willing to wait in anticipation of better prices, he is also quitewilling to search for the best deals over the next six months.
The number of enquiries indicate strong underlying demand. However, withinvestors shying away due to a slow market, the end user is using this windowof six to eight months to explore the markets at length, search for a propertyof their choice and then negotiate to get a good deal. Both developers andlandlords seem more willing to negotiate in an effort to keep up the salesvelocity. In a market driven by end users, consumer preferences come intosharper focus. Apartments emerged as the winner with all cities showingrobust demand. Smaller units of 1, 2 and 3BHK were preferred over premium,large apartments. However, demand for premium apartments was driven by asmall group of buyers who showed that sentiments had nothing to do withthis volume of demand. This being a lucrative category, developers seemed toprefer to build more in this category, thereby creating abundant supply.
The industry would benefit by using statistics to understand consumersentiment, and be able to navigate basis the direction that markets are likelyto take. The volume of stock in every market, if positioned correctly, can beused to bring back the end user. Unlike 2010, when developers had little to woothe anxious consumer with, this time round, they have plenty of stock and anegotiating power to turn the markets around. The question is, can they takeleadership and make Real Estate the sector to kickstart a sagging economy?
We hope you benefit from this edition of PropIndex. A complimentary copy ofHSI is also included with this report. We would look forward to your feedback– please write in to us at [email protected]. Happy Diwali and bestwishes for the festival season.
FOREWORD
Sudhir PaiBusiness Head, [email protected]
Magicbricks PropIndex
Magicbricks PropIndexis a tool whichempowers propertyseekers and investorswith detailedinformation on themovement of residentialapartment prices andsupply of properties inIndia. No credibleproperty index can be afunction of direct valuesas the changes aregoverned by multiplefactors.
Magicbricks PropIndexhas taken this realityinto account andproduced an index basedon listing of apartmentsand their capital andrental values on thewebsite.
Magicbricks has over 500,000 active propertiesposted by more than1,50,000 active users in300 cities and 10,000localities. Our usersinclude owners, agentsand developers.
Methodology
Apartment values arebased on listings onMagicbricks. Theseinclude multistoreyapartments and singleunits on plotteddevelopments, referredto as builder floors onMagicbricks.com.
The Index is structuredin such a way thatindividual properties
are aggregated into theirrespective cities andthen to the NationalIndex. Weightages forPropIndex are based onthe supply of propertieswithin the locality/city.Based on this structure,PropIndex gives arealistic picture oftrends in price/supplyacross different propertymarkets in each city. Wehave used differentweightages for ListedPrice Monitor/RentMonitor. Therefore, readas a whole, PropIndexalong with tablesprovided for Listed PriceMonitor, Rent Monitor,Yield Monitor andCapital Values, gives anexcellent perspective ofthe property marketperformance in thequarter.
While listing and itsvalues/supply provide alevel of understandingof the market, there aremeticulous data checksto prevent aberrationscreeping in the Index.These are based onstatistical calculations,industry inputs andlogical interpretations.
The National PropertyIndex (NPI) is indicativeof the extent of activityas well as pricemovements across citiesand localities in themajor cities active onMagicbricks.com. Theindex includes the top12 cities (these have
been chosen based ontheir activity levels) andhas an individual cityreport for each of thesecities. While the NPI andits movements are ofinterest to the expertcommunity of bankers,builders and investors,the PropIndex has alsotaken care to explain thenuances of indexmovements at thelocality level that wouldhelp the huge base ofMagicbricks.comconsumers.
Insights into consumerdemand have beengathered throughanalysis of searchinformation on the site.This helps understandthe best localities bydemand, the type andconfiguration of units aswell as the budget-wisepreferences.
The PropIndex is theresult of meticulousresearch at the localitylevel and throughdetailed discussionswith experts atMagicbricks.com’soffline and onlineinitiatives.
The Indian real estatemarket is dynamic andthe PropIndex reflectsthose changes. Since it isderived from a dynamicdatabase, additions anddeletions of localitieshappen as a function ofmarket dynamics.
METHODOLOGY
There is a wealth of information within these pages. For better readability, we have presented some data as tablesand others as graphs. Between them, you will find how property markets have performed in the Jul-Sep 2013quarter from different perspectives – from that of capital appreciation, from a rental/yield realisationperspective and from a supply standpoint. Also, Demand Analysis section, explains what consumers look for.
We recommend that you evaluate the city report in its entirety and that will provide a rounded perspective of theperformance of the property market within each city. Here are the details of what you will find in each of the cityreports enclosed within:
1. City Property Index – This is a composite index which is a function of supply of properties as well as theaverage capital appreciation/drop in various localities of the city in the quarter. The city index is theweighted average of the average rate per square foot in that locality and the supply of properties from thatlocality. Premium localities (with higher average rate per square foot) as well as localities with higher supplyof properties will have a bigger impact on the Index. For example, if the supply of properties from apremium locality drops, that locality will end up having a lower weightage in the index which in turn willpush the Index downwards (and vice-versa). On the other hand, supply of properties remaining unchanged,the Index will be influenced by capital appreciation within the locality.
2. Listed Price Monitor – This metric shows the capital appreciation/drop within a locality and is calculatedon the basis of movement in the “average rate per square foot” within that locality. By and large, themovement in the “average rate per square foot” reflects capital appreciation/drop. However, in a few selectcases, we have observed that the average rate per square foot moves due to a change in the mix of apartmentswithin that locality (e.g. if the ratio of premium apartments, which command a higher per square foot rate,changes over the quarter). In these few circumstances, the Listed Price Monitor will, in turn, reflect thisinput. Such changes have been explained in the text of the City Reports.
3. Rent Monitor – This reflects the rental appreciation/drop within a locality. It is calculated on the basis ofmovement in the “average rent per square foot” within that locality. By and large, the movement in the“average rent per square foot” reflects rental appreciation/drop. However, in a few select cases, we haveobserved that the average rent per square foot moves due to a change in the mix of apartments within thatlocality (e.g. if the ratio of premium apartments, which command a higher per square foot rent, changes overthe quarter). In these few circumstances, the Rent Monitor will, in turn, reflect this input. Such changes havebeen explained in the text of the City Reports.
4. Yield Meter – Yield is the annual rate of return earned on property. The Yield Meter depicts the gross yieldpercentages across various localities. Gross yield is a ratio of average annual rental value to the averagecapital value of the property.
5. Capital Value Tables (given in Annexures) – This shows the actual range of prices within which propertieswere available in each locality in the quarter. Prices are shown in Rupees per square foot basis, these are theprevailing rates for properties in each locality.
6. Demand Analysis – This analysis of consumer demand is based on searches and requirements that usershave performed on Magicbricks.com. The top localities by demand gives an insight into consumerpeferences. The demand data has been used to arrive at various aspects of consumer requirements includingBudget-wise analysis, Property type analysis and BHK configuration analysis. This section also provides acomparison between demand and supply in the Apr-Jun 2013 and Jul-Sep 2013 quarters.
7. Realty News – Property market performance is also dependent on drivers outside the purview of buyingand selling. There are broadly four key drivers that determine the prospects of real estate – infrastructuresuch as water and power, transport links creating new growth corridors, policy such as rental laws, propertytax, etc and return on investment. PropIndex also focuses on news bytes that impact future prospects of real estate in the city.
GLOSSARY & DEFINITIONS
JUL-SEP 2013
National Property Index is aweighted average of supply andvalues across 12 cities in India. Inthe latest quarter (Jul-Sep 2013)the NPI witnessed a rise of 4 per cent. Of the 12 cities in theapartment index, majority of thecites have seen a rise, on the backof steadily increasing supplyacross cities.
Bangalore was the biggest gainerwith a rise of 17 per cent. It wasfollowed by Kolkata with 9 per cent, Mumbai, Delhi, Puneand Vadodara witnessed 4 per cent rise each, Ghaziabad,Ahmedabad and Hyderabad with 3 per cent and Gurgaon with 2 per cent. Noida registered a dropof 1 per cent.
On the other hand, Listed PriceMonitor, which largely shows thecapital appreciation/drop withina locality ranges between minus 4 per cent to plus 7 per cent.Average property prices remainedupbeat in Bangalore withmaximum rise of 7 per cent,
followed by Hyderabad at 5 per cent. Mumbai and Delhiregistered the maximum drop of 4 and 3 per cent, respectively.
In spite of slow propertytransaction rate, marketcontinues to witness adequateenquiries from property buyers,indicating buyers are scouting forgood deals in the market. Atpresent, buyers are cautious dueto the sluggish economic growthand the looming political electionsin the country.
Despite all uncertainties andweak sentiments in the market,property worth between Rs 30-50lakh continues to top buyerpreference nationally. Citieswhich buck the trend are Kolkata,Gurgaon and Mumbai. InGurgaon and Mumbai, propertiesworth Rs 1-2 crore witnessedhigher demand, except in Thaneand Navi Mumbai. In Kolkataproperty worth upto Rs 20 lakh tops demand.
Read this issue along with theHousing Sentiment Index which is
an analysis of consumer housingsentiments based on surveyacross eight cities.
While PropIndex analyses realestate market performance of theprevious quarter, HSI would offerinsights into potential futuremarket performance.
n Property buyers remainedcautious due to sluggisheconomic growth andlooming elections
n About 40 per cent demandwas for multi-storeyapartments across cities
n Majority of buyerspreferred property worth Rs 30-50 lakh.
n About 30 per cent supplywas of 800-1200 sq ftapartments
IN THIS REPORT:
National Property Index...............1
Delhi.........................................4
Gurgaon...................................11
Noida & Ghaziabad................... 18
Mumbai....................................29
Pune........................................36
Ahmedabad..............................43
Kolkata...........,........................ 48
Chennai....................................55
Hyderabad................................62
Bangalore.................................69
Vadodara..................................76
Annexures.................................81
NATIONAL PROPERTY INDEX (NPI)
VOL 3, ISSUE 2; JUL-SEP, FY 2013-14
JUL-SEP 2013
propindex.magicbricks.com
02VOL3, ISSUE 2; JUL-SEP, FY 2013-14propindex.magicbricks.com
NATIONAL PROPERTY INDEX
l Multi-storey apartmentscontinued to witness activedemand. Close to 40 per centdemand was for multi-storeyapartments across India withmaximum in Mumbai at 94 per cent.
l RBI’s recent measures tounwind liquidity tighteningmeasures have been wellreceived by the market.However, the effect on homeloan rates has been negligible.
l The government’sconsideration to ease ForeignDirect Investment (FDI) normsin the real estate sector mayhelp in attracting cash flows,easing out the presentbeleaguered scenario.
Ahmedabad City Index rose by 3 per cent in the Jul-Sep 2013quarter, as compared to a rise of 4 per cent in the previous quarter.Residential developmentscontinue to see regular demand inlocalities along the two majorgrowth corridors - SG Highwayand SP Ring Road.
Delhi City Index rose by 4 percent during the Jul-Sep 2013quarter as compared to a drop of 3 per cent in the previous quarterindicating a slow but stable
market in the last six months. Onthe other hand, Listed PriceMonitor dropped 3 per cent on theback of marginal drop in averagecapital values in 74 per centlocalities in the city. However,localities close to Noida such as IPExtn, Vasundhara, Mayur Viharand Patparganj in East Delhi andselect pockets in Dwarka, owingto connectivity to Gurgaon, haveseen consistent rise in values inthe past few quarters.
The Gurgaon City Index rose by 2 per cent in the Jul-Sep 2013quarter as compared to a rise of 4 per cent in the previous quarter,indicating a slow movement in theproperty market. The Listed PriceMonitor too, remained stablewhile it rose by 2 per cent in theApr-Jun 2013 quarter. It has beenobserved that apartment prices inselect pockets remained up,despite a slow transaction rate.
After witnessing an increase of 3 per cent in Apr-Jun 2013, theNoida city index dropped by 1 per cent, while the PriceMonitor remained unchanged.Almost equal number of localitiesregistered rise and drop inaverage capital values. This keptthe price monitor unchanged. Inthe present quarter, demand andsupply in Noida was inclinedtowards properties priced
between Rs 60 lakh and Rs 1 crore.
The Ghaziabad residentialmarket registered a rise of 3 per cent in the City Index as wellas in the Listed Price Monitor.The highest demand and supplywas noted for properties pricedbetween Rs 40-70 lakh,particularly in localities such asIndirapuram, Vaishali andCrossings Republik. Availabilityof ready-to-move-in options ismainly fuelling demand in theseareas.
The Mumbai City Index went upby 4 per cent during the periodJul-Sep 2013 as compared to a riseof 1 per cent in the previousquarter. This is mainly on accountof increase of supply in the city.The Listed Price Monitor dropped
Locality RankQ2 Q1
Mumbai 1 1
Bangalore 2 2
Pune 3 3
New Delhi 4 4
Kolkata 5 6
Chennai 6 7
Gurgaon 7 8
Hyderabad 8 5
Noida 9 9
Ghaziabad 10 10
Preferred Localities - Sale
Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013
Preferred Localities - Rent
Locality RankQ2 Q1
Mumbai 1 1
Bangalore 2 2
New Delhi 3 4
Pune 4 3
Chennai 5 5
Gurgaon 6 7
Hyderabad 7 6
Kolkata 8 8
Noida 9 9
Ahmedabad 10 10Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013
03VOL3, ISSUE 2; JUL-SEP, FY 2013-14 propindex.magicbricks.com
by 4 per cent. Drop in averageproperty prices in premium areassuch as Worli, Prabhadevi,Santacruz West and Khar West ledto a drop in the listed pricemonitor.
The Pune residential marketcontinues to remain upbeatquarter over quarter. The CityIndex went up by 4 per cent andPrice Monitor by 2 per cent during the period Jul-Sep 2013. Residentialdevelopment along the ITcorridors in the Eastern andWestern parts of Pune continuedto be preferred destinations forboth outright sale as well as lease.
The Kolkata City Index rose by 9 per cent during the Jul-Sep 2013quarter. Increase in capital valuesin more than 64 per cent localitiescombined with a growth in supplyin almost 50 per cent of thelocalities pushed the city index upby 9 per cent. Drop in capitalvalues in premium areas such asJodhpur Park and SouthernAvenue arrested the growth of theListed Price Monitor.
The Chennai City Index rose by 3 per cent during the Jul-Sep 2013quarter indicating a positivemarket. Almost 60 per cent of thetotal localities tracked recorded arise in average capital values, toregister an increase of 3 per centin the Listed Price Monitor.Presence of IT/ITeS companies in
the neighbouring areas kept up theproperty prices in both outrightsale and lease in South Chennai.No sign of price correction waswitnessed in the residentialmarket in the last three months,despite the slow transaction rate.
The Hyderabad City Index rose by3 per cent in Jul-Sep 2013. Rise inproperty values in 77 per cent oflocalities pushed the Listed PriceMonitor up. Owing to theTelengana issue, property priceswere 30-40 per cent cheaper ascompared to any other metrodespite the well-supportedinfrastructure development.
The Bangalore City Index rose by17 per cent in the Jul-Sep 2013quarter, as compared to the previous quarter, which reported a6 per cent drop. With a majornumber of localities reporting anincrease in property values, theoverall Listed Price Monitorregistered a 7 per cent rise in thequarter. Of the total demand, 25 per cent was for properties inthe Rs 40-60 lakh range. A positivesentiment in the IT sectortranslated into rising propertyvalues in Bangalore.
The City Index for Vadodara roseby 4 per cent during the Jul- Sep2013 quarter primarily on the backof healthy supply in the city.However, property prices haveremained stable in the last sixmonths with small fluctuations.
Upto Rs 20 Lakh Rs 20-30 Lakh Rs 30-50 Lakh Rs 50-70 Lakh Rs 70-100 Lakh Rs 1-2 Crore Rs 2 Crore & Above
National - Consumer Budget Preference
30%
25%
20%
15%
10%
5%
0%
14%16%
23%
15%13%
12%
7%
TOP Y IELD GROSSERS
Gross yield is a ratio of average annualrental value to the average capital valueof the property. Given below are the topyield-grossing localities in each city.
Locality Gross yield
Bangalore, Marathahalli 4.94%
Kolkata, Rajarhat 4.61%
Hyderabad, Madinaguda 4.36%
Chennai, Urapakkam 4.21%
Ahmedabad, Vejalpur 3.91%
Mumbai, Parel 3.81%
Noida, Sector-92 3.74%
Pune, Viman Nagar 3.09%
Ghaziabad, Indirapuram 2.90%
Gurgaon, MG Road 2.52%
Delhi, Malviya Nagar 2.36%
CAPITAL GAINS
The table given below indicatesmaximum increase in capital values ineach city.
Locality % Change
Bangalore, Hormavu 10.08%
Kolkata, Behala 8.96%
Pune, Hadapsar 8.89%
Hyderabad, Banjara Hills 8.86%
Ahmedabad, Chandkheda 7.37%
Gurgaon, Sector-92 7.10%
Ghaziabad, Lal Kuan 6.93%
Chennai, Valasaravakkam 6.81%
Mumbai, Borivali West 6.53%
Delhi, Indraprastha Extn 5.54%
Noida, Sector-100 5.22%
BANGALORE 69VOL3, ISSUE 2; JUL-SEP, FY 2013-14propindex.magicbricks.com
PROPINDEX - BANGALOREThe most positive property market inthe country today, Bangalore posted awhopping 17 per cent rise and was amajor impacter of the NationalProperty Index. Infrastructure upgradesplayed a major part in the rise invalues and preference for NorthBangalore areas such as Thanisandra,Belandur and Hebbal. Access to ITSpecial Economic Zones and othercommercial hubs has driven demandhere. As a city driven bymanufacturing and IT, premiumdemand also posted healthy trends.
Supply and demand remained stableacross the city with a marked buyerpreference for properties in the Rs 40-60 lakh budget. In South andEast Bangalore, there was markedpreference for properties in the Rs 20-40 lakh range.
The true strength of any city’s propertymarket is when rental markets keeppace with capital values. In Bangalore97 per cent localities tracked, posteda rise in lease values. This indicatesthat the city is driven by end users andnot by investors putting in money insearch of leveraged growth in propertyvalue. However, rental values rosemarginally and do not showinflationary trends.
IT driven localities such as ElectronicCity, Whitefield and Sarjapur havefeatured in the preferred localities list.Well maintained localities withcommunity interaction and goodconnectivity pushed the rental demandfor areas such as HSR Layout. Lack ofcivic facilities such as water andpower has detracted from rentalpreferences unless these services havebeen augmented by back-up facilities.Proximity to workplaces and goodtransport connectivity are majordrivers.
Maximum supply in the city was of 2 and 3BHK units, accounting for 42 per cent of the supply. These camein sizes of 1000-2000 sq ft. Therewas demand for smaller units aroundIT hubs. Villas demand was largelyaround IT-driven premium locationssuch as Whitefield and Sarjapur.
Bangalore remained largely an enduser driven market with robustdemand and supply acrosscategories. Steady release of land dueto development of transport networkson the periphery of the existing citylimits have ensured new land beingmade available for development.
The Bangalore City Index rose by 17 per cent in the Jul-Sep 2013quarter, as compared to the Apr-Jun 2013 quarter whichreported a 6 per cent rise. With majority of the localitiesreporting an increase in property values, the Listed PriceMonitor registered a 7 per cent increase for the said quarter.
l With the exception ofKoramangla, Magadi Road and CV Raman Nagar, all othermicro-markets reported amarked increase in propertyvalues resulting in a 7 per centrise in the City Index for the Jul-Sep 2013 quarter.
l Identified localities in theoutskirts witnessed significantincrease in demand forproperties. This includeslocalities such as Electronic City,Whitefield, Sarjapur Road andHebbal. Other areas thatwitnessed impressive increase incapital values in the period Jul-Sep 2013 include Silk Board,JP Nagar and HSR Layout. Thishas impacted the City Index andthe Listed Price Monitorsignificantly.
l Localities that have recordedsignificant rise in propertyvalues in the last one yearinclude Hebbal, Bellandur andThanisandra.
l This is largely due to betterinfrastructure and improvedaccess to reach the SEZs by wayof better roads and recentlyinaugurated flyovers.
l Localities such as RT Nagar,Bellandur, Hebbal and KasturiNagar accounted for maximumsupply of ready-to-move-in-homes, with several projectsfrom various developers comingto completion.
l Maximum supply of finishedhomes in the city was witnessedin the price bracket of Rs 35-60 lakh. Listed of 2BHKwith a study or an additionalfamily room, apart from theformal living room, garneredhigh demand in the mid-segment.
l Maximum supply was seen forapartments in the size range of1100-1300 sq ft. The total supplyin this range comprises 27 per cent of the total market.
l With businesses like jewellery,garment, appliance distribution,construction material and themachine tools segment doingwell, the luxury segment pricedabove Rs 1.2 crore witnessed asignificant demand. Areas suchas Bannerghatta Road,Whitefield, Attibelle, Yelahankaand Hosur Road have seenincreased demand in thesegment.
Key Takeaways
E d i t o r i a l
BANGALORE70VOL3, ISSUE 2; JUL-SEP, FY 2013-14 propindex.magicbricks.com
l The Listed Price Monitor for Bangalore registered a 7 per cent increase in the Jul-Sep 2013 quarter.
l The increase is attributed to an overall rise indemand across the city with the exception of a fewlocalities.
l Areas such as HSR Layout, Electronic City,Whitefield, Sarjapur Road, JP Nagar and Hebbalwitnessed extraordinary rise in average capitalvalues.
l This was due to the improved pace of constructionactivity and completion of several projects acrosssegments. This factor has impacted the City Indexand the Listed Price Monitor significantly.
L I S T ED PR I CE MON I TOR
Locality Average Rental Average Capital Gross
Value (Rs/sqft/mth) Value (Rs/sqft) Yield
Bannerghatta Road 13.75 4250 3.88%
Koramangala 21.75 6500 4.02%
Whitefield 16.25 4350 4.48%
JP Nagar 14.75 4600 3.85%
Hebbal 17.00 5675 3.59%
Sarjapur Road 17.25 4775 4.34%
HSR Layout 17.25 5050 4.10%
Marathahalli 16.25 3950 4.94%
JP Nagar Phase 7 15.00 5875 3.06%
Electronic City 13.75 3500 4.71%
Y I E L D M E T E R
l The Magicbricks.com yield meter clocked a rangeof 3.00- 4.94 per cent in Jul-Sep 2013.
l Electronic City which registered the lowestaverage capital value reported the second highestgross yield after Marathahalli.
l Areas in North Bangalore reported the highest
increase in rental values since the last one year. Atthe top of the list is Benson Town which reporteda 48 per cent increase in rental values in the saidperiod.
l Saturated land pockets and presence of C-levelpersonnels has resulted in muted increase inrental values of Indiranagar and Lavelle Road.
RENT MON I TOR
l Bangalore recorded a steady rise in rental valuesacross the city. Around 97 per cent of the localitiestracked witnessed a rise in rental values in the Jul-Sep 2013 quarter, with a few notable exceptions.
l Localities such as Koramangala and Banshankarireported a drop in rental values in the presentquarter while Indiranagar registered no change ascompared to the Apr-Jun 2013 quarter.
l Areas like Malleshwaram and JP Nagar witnessed 9 per cent growth in the Jul-Sep 2013 quarter
l Overall the rental values in Bangalore have notreported any dramatic increase, the changesrecorded are the expected marginal fluctuationsobserved from quarter -to-quarter.
7%
BANGALORE 71VOL3, ISSUE 2; JUL-SEP, FY 2013-14propindex.magicbricks.com
RENT
Locality Rental RankValues Q2 Q1
HSR Layout 16000 to 18500 1 1
Marathahalli 15000 to 17500 2 2
Whitefield 15000 to 17500 3 4
Koramangala 19500 to 24000 4 3
Indira Nagar 17000 to 21000 5 5
Electronic City 12500 to 15000 6 6
Bellandur 15500 to 18500 7 8
Sarjapur Road 16000 to 18500 8 7
Malleswaram 20500 to 24000 9 10
Bannerghatta Road 12500 to 15000 10 9
Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013
Locality Capital RankValues Q2 Q1
Whitefield 3850 to 5250 1 1
Sarjapur Road 4250 to 5750 2 2
Electronic City 3150 to 4100 3 3
HSR Layout 4500 to 6000 4 4
Marathahalli 3600 to 4600 5 6
Bannerghatta Road 3800 to 5050 6 5
Rajarajeshwari Nagar 3250 to 3950 7 8
Koramangala 5800 to 7750 8 9
Yelahanka 3650 to 4900 9 10
Kanakapura Road 3800 to 4950 10 -
SALE
Note: Q2 Jul-Sep 2013, Q1 Apr-Jun 2013
PREFERRED LOCALITIES
l Proximity to work place, improved connectivity dueto flyovers, broader roads and ORRs have ensuredElectronic City, Whitefield and Sarjapur Roadcontinue to top the list of most preferred localitiesin the present quarter as well.
l Electronic City, by virtue of having a large varietyof offerings within the Rs 40 lakh range, makes itone of the affordable localities. Further, severalresidential projects are at various stages ofdevelopment in the stretch between Neeladri Roadand Thogur in addition to Jigini Road and othernearby areas.
l Marathahalli slightly improved its standing fromthe last quarter in the buyers’ preferred list. SeveralIT companies are planning to expand their offices inthis area. This has triggered buyers to opt forapartments in this locality.
l Kanakpura Road inched up in the buyers’preferance list. The completion of the Metro and theexpected easier commute is cited as the reason.
l Strategic location, a very active resident welfareassociation and good connectivity have ensured HSRLayout maintains its preferred locality status at thetop of the rental list.
l Marathahalli, at a rental range of Rs 15,000-17,500per month, is a close second with good connectivityand strategic location. Lack of green space is oneaspect that has kept it from reaching the top slot ofthe preferred rental locality rating.
l Bellandur and Sarjapur managed to more or lessmaintain their positions of being moderatelypopular as rental destinations. However, certainfactors such as reliability on tankers or borewellsfor water and lack of greenery kept them fromimproving their standing significantly in thepreferred rental destination list.
l Bannerghatta Road was the tenth locality in thepreferred rental rating. Distance from place of workis a key reason for this, although it gainsremarkably when it comes to greenery.
l With 40 per cent of the totalresidential demand, East Bangalorerecorded the highest buyer interestin the city. However, supply in thezone fell short of the demand.
l South Bangalore was the secondmost preferred region by residentialbuyers, with almost equivalentsupply.
lNorth Bangalore registered agrowing residential demand with 20 per cent buyer interest.
Above 40% 30-40% 20-30% 10-20% Less than 10%
BANGALORE72VOL3, ISSUE 2; JUL-SEP, FY 2013-14 propindex.magicbricks.com
A renewed focus on infrastructure development is likely to impact the real estatemarket in the city. Given the fact that the city has extended its footprints fromNorth to South, there is a wide range of housing options available to suitdifferent budgets.
Infrastructure to boost realty in North BangaloreThe realty market in North Bangalore is expected to be robust in future due to manyreasons. The key factor for this growth will be infrastructure. R Nagaraj Reddy, CREDAIKarnataka says, “The State Government has recently approved the Peripheral RingRoad around Bangalore and hence, the property values will increase.” A 65-km longstretch comprising the stretch from Tumkur Road to Hosur Road, crossing Bellary Road,Old Madras Road and Varthur Road, will be developed under Phase-I.
n Magicbricks.com Bureau
Budget housing finds demand in South BangaloreFrom housing some of the oldest localities in Bangalore, South Bangalore has stretchedfar beyond to witness development up to Hosur. The main factor pushing growth hasbeen the proliferation of the IT/ITeS sector in this belt. Civic projects such as the HosurRoad Expressway, the upcoming Metro line, good social infrastructure and lower landcost towards the peripheries have led to residential development along this corridor.
n Times Property, The Times of India, Bangalore
The Bangalore market as compared to rest of thecountry has been steady in the last few months.In fact, we have actually increased our rates byabout 15 per cent, and are happy with the sales.Naturally, a cut in interest by the RBI wouldboost the market further. But despite the currentrate, I would say we have done well.
Ravi VarmaDirectorDeFINER Group
E X P E R T S P E A KDeveloper
How has the city’s realty marketperformed in the last three months?Was there any impact of theincreased repo-rate on sales?
The market has performed reasonablywell in the recent months. Highconstruction cost and some otherfactors has led to a slowdown in themarket. However, it is expected to pickup in the third and fourth quarter of theyear. The impact of the increasedrepo-rate has not been felt as of yet.
At what stage of construction are thesales maximum?
Projects which are nearing completionhave the maximum sales.
What budget and configurations aremost in demand? Why?
Bangalore realty market is driven bynuclear families with an earning of Rs 6-12 lakh per annum.Price rangeof Rs 30-60 lakh with all amenitieshas a fair demand. High-end homespriced above Rs 1.5 crore also have a reasonable demand in some parts of the city.
Are there any proposed infrastructureprojects in the city and where?
The proposed STRR (Satellite TownRing Road) is what everyone islooking for.
What are your expectations from thereal estate market of Bangalore inthe next six months?
The market is expected to grow in thenext six months, though there areseveral factors which may hamper theexpected growth.
Vijayshankar JSDirector- Ascent Builders, CREDAI Member
Q&A
Localities in Bangalore are recording a steadygrowth, especially in West Chikbellapur, TumkurRoad and Magadi Road, due to improved orplanned road connectivity and the Metro. Thechange in the market is that developers are nowoffering more green space and striking a balancebetween price and luxury.
Krishna BhatCEO, Srujana Architectsand Developers
Broker
The Elevated Expressway, Bangalore-MysoreInfrastructure Corridor and BangaloreInternational Exhibition Center (BIEC) are someof the infrastructure projects in the city.Proposed Mumbai-Bangalore Industrial Corridorand expansion of the Metro are also expected tosignificantly impact real estate in the city.
Rajat DharManaging Partner, Cogent Advisory
Consultant
R E A L T Y N E W S
To read full story and more news go to www.content.magicbricks.com
BANGALORE 73VOL3, ISSUE 2; JUL-SEP, FY 2013-14propindex.magicbricks.com
Budget wise Analysis - DEMAND
120
100
80
60
40
20
0
Q1 (Apr-Jun 2013)
Q2 (Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
South Bangalore North Bangalore Central Bangalore West Bangalore East Bangalore
<20 lakh Rs 20-40 lakh Rs 40-60 lakh Rs 60 lakh-1 crore Rs1 crore and above
Q1 Q2
30
Q1 Q2
26
Q1 Q2
10
Q1 Q2
28
Q1 Q2
29 28
11
2625
28
Budget wise Analysis - SUPPLY
120
100
80
60
40
20
0
Q1 (Apr-Jun 2013)
Q2 (Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
South Bangalore North Bangalore Central Bangalore West Bangalore East Bangalore
Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2
14
12
25
15
89
1619 18
8
28
8
28
15
29
7
20
32
20
13
2324
2423
8
3132
6
27
25
19
21
17
26
2423
24
19
18
21
20
16
18
28
2830
1215
23
22
2220 25
33
2121
8
23
28
12
<20 lakh Rs 20-40 lakh Rs 40-60 lakh Rs 60 lakh-1 crore Rs1 crore and above
24
2830
14
77
2220
10
1414 14 3536 1212
19 75 2423
17
City Level Analysis
l Demand and supply for residentialproperties remained almost stablewith a small variation of 1-2 percent in the Jul-Sep 2013 quarter.
l Both demand and supply remainedhighest in the budget range of Rs 40-60 lakh. With close to 30 per cent of the total residentialdemand in this category, demandoutstrips supply by 4 per cent.
l Properties worth Rs 20-40 lakhremained the second mostpreferred category. However,supply fell short by 7 per cent.
l Maximum demand and supply gapwas witnessed for properties worthover Rs 1 crore, where supplyexceeded demand by 10 per cent.
Zone Level Analysis
l East Bangalore witnessed themaximum demand and supply forresidential properties worth Rs 40-60 lakh. Whitefield, SarjapurRoad and Marathahalli top thedemand and supply chart in thisbudget range.
l The budget range of Rs 20-40 lakhwas the most preferred in Southand East Bangalore. However,supply fell short in both theregions by 6 and 10 per centrespectively. Electronic City, HSR Layout and JP Nagar in Southregistered the maximum demand.
l In the East, Whitefield, SarjapurRoad and Marathahalli were themost preferred localities in theaffordable range of Rs 20-40 lakh.
l Supply exceeded demand acrossthe city for properties worth Rs 1 crore and above. BannerghattaRoad and HSR Layout in the South,Hebbal in the North and IndiraNagar, Sarjapur Road andWhitefiled in the East witnessedthe maximum supply forapartments worth Rs 1-1.40 crore.
40
30
20
10
0<20 20-40 40-60 60-100 100 &
above
7
Fig
ures
in p
erce
ntag
e(%
)
Figures in Rs lakh
8
28 28 29 29
23 21
13 14
(Apr-Jun 2013)
(Jul-Sep 2013)
Budget wise Analysis - City Level
DEMAND
40
30
20
10
0<20 20-40 40-60 60-100 100 &
above
11
Fig
ures
in p
erce
ntag
e(%
)
Figures in Rs lakh
9
1921
26 2520 21 24 24
(Apr-Jun 2013)
(Jul-Sep 2013)
SUPPLY
9
DEMAND - S UPP LY ANALYS I S
Budget Wise Analysis
City Level graphs represent demand and supply in differentbudgets in the city in two quarters. Zonal Demand and Supplygraphs decode specific requirements, listings and changingavailability of these units across zones in each quarter.
Buyer demand analysis includes city and zone level analysis of three parameters - Budget, Configuration andProperty Types. Each of these have been analysed from the supply and demand perspective. These give insightinto a city’s real estate profile in the quarter.
7 8
BANGALORE74VOL3, ISSUE 2; JUL-SEP, FY 2013-14 propindex.magicbricks.com
Property wise Analysis - City Level
60
50
40
30
20
10
0
45 45
3 3
16 16
31 31
(Apr-Jun 2013)
(Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
Multistorey Single Residential Residential Villaapartment floor house plot
DEMAND
5 5
60
50
40
30
20
10
0
52 54
12 12
8 8
23 21
(Apr-Jun 2013)
(Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
Multistorey Single Residential Residential Villaapartment floor house plot
SUPPLY
5 5
Property wise Analysis - DEMAND
120
100
80
60
40
20
0
Q1 (Apr-Jun 2013)
Q2 (Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
South Bangalore North Bangalore Central Bangalore West Bangalore East Bangalore
Multistorey apartment Single floor Residential house Residential plot Villa
Q1 Q2
44
16
33
44
16
33
39
21
36
39
21
36
69
15
10
70
16
10
33
21
43
32
24
41
Q1 Q2 Q1 Q2 Q1 Q2
50
13
25
51
14
25
Q1 Q2108
Property wise Analysis - SUPPLY
120
100
80
60
40
20
0
Q1 (Apr-Jun 2013)
Q2 (Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
South Bangalore North Bangalore Central Bangalore West Bangalore East Bangalore
Multistorey apartment Single floor Residential house Residential plot Villa
Q1 Q2
53
15
21
50
10
24
50
31
44
9
36
68
8
68
10
7
53
8
3039
Q1 Q2 Q1 Q2 Q1 Q2
58
7
15
59
14
Q1 Q289
8
12 8
1815
87
12118
44
9
7
City Level Analysis
l Supply of multi-storey apartmentscontinued to rise with a marginalincrease of 1-2 per cent recorded inthe last six months. However,demand remained unchanged inthe Jul-Sep 2013 quarter.
l Residential plots, the second mostpreferred property type, witnessedno change in supply. In the lastthree months, availability droppedby 2 per cent with maximumsupply for plots sized between 1000-1500 sq ft.
l Demand and supply for villasremained unchanged. Maximumsupply was registered for villas inthe size range of 2900-3900 sqft.
Zone Level Analysis
l Demand remained highest formulti-storey apartments across thecity except in West Bangalore,where highest demand was forplotted units. However, supplycontinued to be highest for multi-storey apartments across zones.
l Nelamangala, Nagarbhavi,Tumkur Road and Mysore Roadcontributed to about 60 per cent ofthe total demand for plots in WestBangalore.
l East Bangalore continued towitness the maximum supply formulti-storey apartments in the city,followed by South Bangalore. Bothdemand and supply in thiscategory remained robust with asmall fluctuation of 1-2 per cent.
l Maximum demand and supply forvillas was witnessed in EastBangalore with 1-2 per centvariation from the last quarter.Whitefield and Sarajapur offeredthe maximum number of optionsfor buyers looking for villadevelopment.
l In North Bangalore, demand formulti-storey apartments and plotsremained stable. Yelahanka,Vidyaranyapura, Hebbal andSahakar Nagar were the mostpreferred residential destinationswith close to 35 per cent of the totaldemand in the region.
5
Property Wise Analysis
The first graph, Property-wise Analysis – City Level, depictshow demand and supply statistics for different property typeshave changed at the city level over a period of six months.
The Property wise graphs by Demand and Supply comparebuyer requirements and the existing listings for variousproperty types in different zones in the six-month period fromApril 2013 to September 2013.
8
BANGALORE 75VOL3, ISSUE 2; JUL-SEP, FY 2013-14propindex.magicbricks.com
BHK Configuration - City Level
60
50
40
30
20
10
0
6 6
55 56
36 35
2 3
(Apr-Jun 2013)
(Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
1 BHK 2BHK 3 BHK 4BHK &above
DEMAND SUPPLY
60
50
40
30
20
10
02 2
44 4441 42
13 12
(Apr-Jun 2013)
(Jul-Sep 2013)
Fig
ures
in p
erce
ntag
e(%
)
1 BHK 2BHK 3 BHK 4BHK &above
BHK Configuration - DEMAND
120
100
80
60
40
20
0
Fig
ures
in p
erce
ntag
e(%
)
South Bangalore North Bangalore Central Bangalore West Bangalore East Bangalore
1 BHK 2 BHK 3 BHK 4 BHK & above
Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2
5856 575657 56 55
4245
57
BHK Configuration - SUPPLY
120
100
80
60
40
20
0
Fig
ures
in p
erce
ntag
e(%
)
South Bangalore North Bangalore Central Bangalore West Bangalore East Bangalore
1 BHK 2 BHK 3 BHK 4 BHK & above
Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2
45
44
40
46
44
52
5845
48 4447
46
46
42
35 36
6 6
3734 4946
6
3637 3335
66
13129
37
17 14
39
4040
12 10
24
22
24
16
City Level Analysis
l The maximum supply wasrecorded for 2BHK units followedclosely by the 3BHK category with42 per cent of the total supply inthe city. Maximum supply wasregistered for 2BHK units sizedbetween 1000-1500 sqft. In 3BHKcategory supply tops for units sizedbetween 1500-2000 sqft.
l Demand in the 4BHK and abovecategory were mainly forindependent houses sized between2000-3000 sq ft.
l On the other hand, city continuedto witness maximum demand inthe 2BHK category with over 50 per cent buyer interest. Withnearly 35 per cent demand, 3BHKunits were the second mostpreferred category.
l Supply of 1BHK units continued toremain low. Apartments having asize of 600-700 sq ft were the mostsupplied in this category.
Zone Level Analysis
l Demand and supply across variouscategories remained stable in allzones with small fluctuations of 1-3 percent recorded in the last sixmonths.
l Demand for 2BHK unitsoutstripped supply by 10-20 per cent across zones. Maximummismatch was witnessed in theNorth and Central zone. Localitiessuch as Richmond Town andCookes Town in Central andHebbal, Malleswaram andYelahanka in North Bangalorerecorded the maximum demand.
l Except in Central Bangalore,demand for 3BHK units rangedbetween 30-40 per cent across allzones. Supply for the sameoutstripped demand by a margin of5-10 per cent across all zones with amaximum disparity in North andEast Bangalore.
l Localities in and around ITcompanies such as Marathahalli inthe East and Electronic City inSouth Bangalore registered themaximum demand for 1BHK units.
Q1 (Apr-Jun 2013)
Q2 (Jul-Sep 2013)
Q1 (Apr-Jun 2013)
Q2 (Jul-Sep 2013)
6
8
BHK Configuration Analysis
The City BHK Configuration graphs represent demand andsupply of 1, 2, 3 and 4 BHK apartments in the city in twoconsecutive quarters – Apr-Jun 2013 and Jul-Sep 2013.
The BHK Configuration graphs by Demand and Supplycompares buyer requirements and the existing listings forvarious configurations in different zones in the six-monthperiod from April 2013 to September 2013.
ANNExUrES
Babu Sahibpalya- Hennuru 3250 to 3950
Banaswadi 3650 to 4600
Bannerghatta Road 3800 to 5050
Bellary Road 4450 to 5650
Benson Town 8200 to 10550
Brooke Field 4900 to 6000
BTM Layout 4550 to 6000
Cookes Town 6500 to 8250
Cox Town 5650 to 6350
CV Raman Nagar 3650 to 4700
Doddaballapur Road 3450 to 4350
Doddanakundi 3800 to 4200
Electronic City 3150 to 4100
Frazer Town 5400 to 6850
HBR Layout 3850 to 4850
Hennur 3450 to 4850
Hennur Main Road 4000 to 5200
Hennur Road 3900 to 5050
Hoodi 3250 to 4400
Hormavu 3300 to 4050
Hosa Road 3250 to 4050
Hosur Road 3100 to 4000
HSR Layout 4500 to 6000
Indira Nagar 6800 to 8400
ITPL 3650 to 4500
JP Nagar Phase 9 3250 to 4400
Jakkur 3750 to 4700
Jalahalli 3850 to 5200
JP Nagar 4150 to 5450
JP Nagar Phase 5 4400 to 5450
JP Nagar Phase 6 4600 to 5600
JP Nagar Phase 7 5250 to 7000
Kadugodi 3000 to 3650
Kaggadasapura 3550 to 4200
Kalyan Nagar 3900 to 4950
Kanakapura Road 3800 to 4950
Kengeri 3150 to 3750
Koramangala 5800 to 7750
Kundalahalli 3350 to 4100
Mahadevpura 4000 to 5200
Malleswaram 9400 to 12450
Marathahalli 3600 to 4600
Mathikere 4450 to 4900
MG Road Area 10550 to 13750
Mysore Road 3550 to 4450
Nagarbhavi 3500 to 4650
Nagawara 3700 to 4500
Old Airport Road 5050 to 6900
Old Madras Road 3950 to 4850
OMBR Layout 4250 to 4800
Outer Ring Road 4900 to 6650
Rajarajeshwari Nagar 3250 to 3950
Ramamurthi Nagar 3150 to 3900
Richmond Town 8750 to 11200
RT Nagar 4050 to 5250
Sahakar Nagar 4150 to 5300
Sanjay Nagar 6200 to 7850
Sarjapur 2950 to 3900
Sarjapur Road 4250 to 5750
Silk Board 3500 to 4550
Singasandra 3500 to 4100
Thanisandra 4150 to 5150
Thanisandra Road 4150 to 4850
Thubarahalli 3450 to 4200
Uttarahalli 3200 to 3850
Varthur 3350 to 4450
Vidyaranyapura 3350 to 4400
Whitefield 3850 to 5250
Yelahanka 3650 to 4900
Yelahanka New Town 3450 to 4750
BANGALORE 91VOL3, ISSUE 2; JUL-SEP, FY 2013-14propindex.magicbricks.com
CAPITAL VALUES – LOCALITY WISE
Average Listed Residential Apartment Prices
Locality Capital Values (Rs/Sq feet)
Locality Capital Values (Rs/Sq feet)
BANGALORE
D I S C L A I M E REvery effort has been made to make this Index as complete and as accurate as possible. MagicBricksaccepts no responsibility for inaccuracies in the information/data contained in this book. It shall haveneither liability nor responsibility to any person or entity with respect to any loss or damage caused, oralleged to have been caused, directly or indirectly, by the information contained in this book. Theinformation/data in this book is subject to change from time to time due to market condition.
CONTACT US
l Post your feedback to -
propindex @timesgroup.com
l Join our discussion forum at -
openhouse.magicbricks.com
l For business enquiries -
PROPINDEX TEAM
l Content & research: E Jayashree Kurup,
Dipti Tandon, Subodh Kumar, Vikram Jethwani,
rishab Jain, Sruthi Kailas, Shradha Goyal,
Bhawna Mongia, renu Arya,
Aradhana Mozumdar, Girish Bindal,
Puneet Kukreja & Bikash Kumar.
l Layout Design: Harsha Khattar
l Cover Page Design: raghav Krishnan &
rahul Nair
propindex.magicbricks.com VOL3, ISSUE 2; JUL-SEP, FY 2013-14
