Ever since the four major transit infrastructures – Eastern Freeway, Metro Rail VAG Line, Santacruz-Chembur Link Road and Monorail Phase 1 became operational, the time taken to travel from Kurla-Ghatkopar corridor to the eastern, western suburbs, South Mumbai and Thane has reduced. The route which took over two hours to cross, now with swift metro links takes less than 30 minutes. Similarly, the Eastern Freeway has enabled the traffic to take a direct route to South Mumbai, rather than taking the Eastern Expressway.
As the travel time to work places has reduced due to development, the demand for properties in areas across the stretch of Kurla West, Tilak Nagar, Ghatkopar East, Sindhu Wadi and Ghatkopar West has increased in the last six months.
“The demand for properties has increased and is totally based on the ‘pricing’ of the properties. The stretch has properties in various budget ranges which works in favor of the corridor,” says Vinil Kabra, director, Kabra Estate and Investment Consultants.
As per the Magicbricks data, a 1BHK apartment of 500 sq ft in Kurla is offered in a budget range of Rs 65-80 lakh while the same sized apartment is priced at Rs 75 -90 lakh in Ghatkopar West. Similarly, a 2BHK unit of size 800-1000 sq ft is available for Rs 1-1.25 crore in all the three localities.
If we talk about capital appreciation here, the recently released PropIndex (Jul-Sep 2014), the India Apartment Index by Magicbricks, shows the highest capital appreciation of 6 per cent in Ghatkopar West in the last three months. Kurla West and Ghatkopar East have also witnessed similar trends of price appreciation within a range of 1-4 per cent during the same period.
Binaifer Jehani, director, Crisil agrees, “In Mumbai, while most micro-markets are likely to see capital appreciation of 4 per cent on an annual basis during 2015 and 2016, micro markets such as Thane and Kurla-Ghatkopar could witness a higher annual rise of 6-8 per cent. The increase in prices in Kurla-Ghatkopar will mainly be driven by improved connectivity with the completion of the four large infrastructure projects.”
Since these areas are established localities of Mumbai, the social and physical infrastructure is quite robust. However, lack of open spaces and parking areas in Ghatkopar West and Kurla are major concerns for the residents.
If Bandra-Kurla Complex (BKC) meant anything for Mumbaikars, it was being a younger cousin to Nariman Point, one of the pioneer Central Business Districts (CBD) of Mumbai. While the focus shifted from Nariman Point to BKC, housing demand in and around this region also witnessed a significant rise.
Today, with the Mumbai Metropolitan Regional Development Authority (MMRDA) allocating Rs 65 crores to develop civic amenities in BKC, the residential sector could be a healthy beneficiary . The residential space allocated is approximately 10 per cent while commercial dominates the realty space here. With the area proposed to get `smart’, the upcoming residential projects would benefit and more so, the high networth individuals (HNIs).
While noted developers have slowly taken to launching their residential projects in BKC, public attention has been around the MMRDA’s plan to convert it into a smart business district. So, what is in store? Energy-efficient street lighting, smart parking, Wi-Fi access, digitised scrutiny of construction proposals and even CCTVs with advanced video analytics.
“A smart business district means the vicinity and real estate projects would be the ultimate beneficiaries.If the funds for civic amenities are rightly allocated, the residential sector would be positively impacted and the area would become cleaner,“ says Rahees Rijwi, realtor at Confirm Deal. “Impetus for having a residence here is so that the HNIs have the benefit of walk-to-work. While back offices of many MNCs are moving to budget-friendly areas, top officials have already parked their money in some of the ultra-luxury projects in BKC,” shares Santosh Rathod, proprietor, HNI Realtors, as he names some of the rich-and-famous who have recently bought properties in BKC.
While prices in BKC are in the range of Rs 40,000-50,000 per sq ft when it comes to a reputed developer, prices in Bandra east, the new micro-market, range between Rs 25,00035,000 per sq ft. Prices vary depending upon the exact location of the house, brand of the developer and the amenities provided to end-users.
Dhanraj Suvarna, manager-residential, JLL India, says, “The real benefit would be to areas outside BKC and not just around it. When buyers plan on investing in BKC or Bandra, they are definitely not talking about affordability. There are takers even for flats priced in the range of Rs 70,00075,000 per sq ft in Mumbai; so at existing rates, BKC’s pricing is not crippling when it comes to actual buyers.” BKC’s social fabric and proximity to workspaces is the most obvious reason why residential units, catering to HNIs, are coming up here. However, the best part is how BKC’s prominence has facilitated realty development and housing demand outside BKC namely Bandra, Kurla, LBS Road, Sion, Kalina and Mahim.
“Post the bhumi pujan for the third phase of the metro rail that is touted as a mammoth infrastructural progress, property prices are expected to rise further. As per the plan, with 27 underground stations, the Colaba to SEEPZ route via Kalbadevi, Girgaum, Worli, BKC and the airport, would be a boost to the realty – both, commercial and residential in BKC and the adjoining areas,” say most trend watchers.
Is building BKC as a smart area, a feasible plan? “Much depends on the authority’s plan. Wadala is to be developed as the next BKC and they have a masterplan. Similarly, it will take off only if the MMRDA has set goals and a plan to develop it.” “Apart from the obvious reasons that BKC is famous for, much is also because of the efforts that are locally taken up. Most of Mumbai has space constraints and a green cover is missing. At BKC, the road-divider beautification project was taken up some time back, conserving old plants which are usually trashed,” says Sharad Gadekar, a banker in BKC.
Residents like Gadekar inform that while having a flat in BKC does boost one’s status, civic amenities matter and welfare initiatives go a long way too. For the white collar professionals, wanting to walk-to-work, BKC is the new smart answer.
Source: Times Property, The Times of India, Mumbai
Chembur sheds ‘heritage’ tag to make way for redevelopment
Chembur is all set to see a new wave of development as it is no more a ‘heritage’ precinct to be preserved!! Know more with Magicbricks-
It was almost 15 months back when Chembur Citizen Forum initiated resistance against the ‘heritage’ status of Chembur Gaothan, Old Chembur and St Anthony’s Society which also stalled the ongoing re-development projects. But now the fight seems to be almost over for the residents here.
“The Government has expelled Chembur area, except some Church buildings, Jain temple and Deulwadi, from the list of heritage areas. This move has given a green signal to start the stopped projects again and welcome the newer ones,” says Hemant Petare, general secretary, Chembur Citizen Forum.
According to Petare, over 500 buildings, deemed under the category, need repairing or re-development. Now, as the tag has been taken away, repairing can be done or re-development can be initiated at the earliest.
Will this give way for high-rise buildings as well? Mumbai’s Chembur Gaothan is one of the oldest localities of Mumbai where majority of the buildings are in damaged conditions and need urgent repair. Although, some buildings are still in the list of heritage sites, majority of the residential buildings are freed from the status.
However, since the plot sizes are small, high-rises might remain a distant dream until group housing development policies are enforced. “Most of the plots here are sized between 500-1000 sq meters, hence only mid-size buildings can be a possibility,” adds Petare.
Will new stock bring down the prices? Chembur is one of the prime localities of the metropolitan region because of its proximity to the Bandra-Kurla Complex and easy connectivity to South Mumbai. The area also witnesses robust housing demand from professionals working in nearby areas. Due to limited supply and unending demand, property values are high in the area.
As per the Magicbricks data, capital values range from Rs 14,000-18,000 per sq ft. Moreover, almost 60 per cent of the properties available in Chembur are 2 or 3BHK units, priced between Rs 1-6 crore. But since the area is gearing up for new supply, will this bring down the rates? Local realtors don’t think so!
“There are a number of charges involved for getting approvals and clearances’ that bringing down the prices is not a possibility in the Chembur property market. However, fresh properties can impact the sentiments and boost demand further in times to come,” says Jaysinh Kapadia, president, The Association of Real Estate Agents (AREA) – Mumbai
He further adds, “Availability of modernised, new properties in established localities is a boon for any property buyer but this part of Chembur lacks quality infrastructure and needs renovation in every aspect to command comparable prices to Tilak Nagar, Indira Nagar, RCF Colony or Shastri Nagar.”
Kapadia also pointed out that amenities and quality of product will be some deciding factors on whether Chembur will ride on the priority list of prospective home buyers. So, very soon, the congested and crowded suburb of Mumbai can boast of a modernised skyline.
Surbhi Gupta, Magicbricks.com Bureau
Surbhi Gupta is a real estate correspondent in Magicbricks’ editorial team with the flair of analysing the industry trends and scenario.
For those who had invested along the stretch from Thane to the Central Business District of Belapur, there is more than one reason to cheer. From physical infrastructure to an expanding job market, and from the metro rail to better connectivity to the upcoming commercial markets, the real estate market expects a positive impact in times to come. This impact is clearly visible in the capital values of Ghodbunder Road, Kolshet Road, Airoli, Majiwada, Ghansoli, Vasant Vihar or Vashi. As MagicBricks.com data indicates, over the last two years, all these areas have reported a rise in capital values in the range of Rs 650-3500 per sq ft, depending upon the location.
End-users have been banking on the numerous upcoming infrastructure projects, one of them being the metro rail network. Deepak M, consultant at Shri Sai Property Consultants, says, “Of late, Thane has been a fast-moving market. Buyers have the benefit of sound living standards and almost half the price it would take to live in Mumbai. Most buyers also foresee property prices going up.” Initially, while it would have taken close to 50 minutes to commute to Mumbai, with the metro, the time taken would be down to 20 minutes. This positively impacts the property markets of Vasant Vihar, Majiwada, Pokhran Road 1 and 2 as well as Ghodbunder Road and Hiranandani Estate.
Affan Ansari, a local realtor in Thane, informs, “Majiwada Junction Flyover cuts across the busiest routes of Thane. Strategically planned, commuters from Mumbai would have easy access to Kalyan. This flyover, already half operational, facilitates to and fro connectivity to Mumbai, Nashik and other areas where most of the economic drivers are.” So, whether you are working in Borivli, Malad or Mulund, the three flyovers planned here, are getting developed in phases and will facilitate travel. By easing connectivity, Majiwada also opens investment options in the region. With capital values slowly picking up, most residential pockets in Thane would see more number of takers.
Shoaib Khan, consultant at Just a Home, says, “Thane’s realty banks on planned vision of developing the area as per the needs of the end-users.” This said, Thane’s most active residential pockets are in Ghodbunder Road, catering to both, commercial and residential development, with many new projects under construction. Connectivity to the Eastern and Western Express Highways in Mumbai has been a determinant. Other residential pockets like Kasarvadavli and Anand Nagar, have generated interest from professionals looking for mid-segment properties.
While you may be working in Wagle Estate, etc., Thane offers property options in the vicinity. Moreover, with the later phase of the Jawahar Lal Nehru Port Trust having been inaugurated in August this year, employment avenues have been generated in the port and allied industries of the SEZ.Thus, the Thane to Belapur belt is expected to get a real estate push in the wake of an expanding job market.
Take Navi Mumbai and the stretch that extends from Thane to the epicentre of the job market in Belapur, and also through Vashi, Airoli, Ghansoli and Koper Khairane.Among active residential markets in this belt is Ghansoli which draws investors from Navi Mumbai. With a considerably less land bank and more resale projects, Ghansoli is where you need to zero down. Majinder Singh, consultant at Jeet Properties, informs how “Much of the investment trends shifted focus to areas beyond Belapur like Kharghar, Ulwe, Dronagiri and Panvel but these are primarily investor-friendly destinations. Conveyance and connectivity are a major deterrents. However, if the Navi Mumbai Airport gets operational, the area would benefit.” Working professionals, mostly end-users, are opting for Ghansoli thanks to the CIDCO developed pockets or the secondary market in areas along the stretch.
“Options are many as G+30, G+32 flats are coming up in the area. All this makes it a sought-after destination as of now,” adds Singh.
“While prices in and around Belapur are relatively affordable when compared to Thane, buyers are opting for the latter due to better infrastructure – both, physical and social, in terms of schools, colleges, commercial areas, theatres and major upcoming
hubs. Market sentiments have improved within the last three months resulting in a good conversion ratio,” says Khan.
Many projects that got delayed because of pending approvals or clearance certificates have also come up in the market. Buyers can make use of this supply for a good negotiation. The festive season could be a favourable time for discounts and attractive packages.
Trend watchers note that the expectations of buyers have increased over time due to the upcoming developments, be it the airport, monorail for connectivity to Dahisar and Kalyan, metro network, flyovers, the Nhava Sheva link road or even the strategic location of Thane within the Delhi Mumbai Industrial Corridor.
Although some of these projects are future-bound, the impact on property and investment patterns is clearly visible.
Source: Times Property, The Times of India, Mumbai
The pattern of real estate development in any location is more or less similar. There is one trigger point from which all growth takes off. For instance, it could be proximity to an economic nerve centre and availability of land at economical rates leading to a spill-over effect. Or, it could be the location of a key establishment, such as the international airport in Bangalore north. It could be connectivity and government led initiatives leading to growth, as in the case of the Outer Ring Road (ORR). This has led to residential development in locations around for employees working in these corridors.
A growing residential population requires shopping centres, convenience stores, dining and
options at a convenient distance, giving a thrust to retail. The presence of retail, in turn, determines the attractiveness of a location.
Residential and commercial real estate of any kind have a symbiotic relationship. It is usually retail development that chases residential development. In other words, retail developers will seek to establish malls as close as possible to residential catchments.
Juggy Marwaha, Managing Director South, JLL India, explains, “The challenge is to find the right location, right size and right configuration to build malls which are close enough to residential catchment without becoming a nuisance. In cases where mall developers have achieved the right equation, retail development will definitely lead to more residential demand in such areas. The demand comes not only from residences accessing from shopping malls but also people employed around shopping malls. Therefore, the perfect residential catchment for a retail destination will have a good mix of affordable and mid-income housing.“
Convenience of retail
As with most cities in India, Bangalore too developed organically without any strategic zoning of uses. Over the years, therefore, real estate development, especially retail real estate development, decentralised from the traditional Central Business District (CBD) and followed the population growth and ensuing housing as well as physical and social infrastructure development across various suburban and peripheral micro-markets of the city .
Ram Chandnani, Deputy Managing Director South India, CBRE South Asia, adds, “Such a decentralised development pattern of organised retail space resulted in consumers enjoying the convenience of quality shopping and entertainment options in proximity to their residential neighbourhoods, doing away with the need to travel to the city centre for serious shopping requirements. Thus, over the last decade, the city’s residents and consumers have begun to prefer residential neighbourhoods that are close to organised retail hubs, and vice versa.“
Retail in emerging locations
According to research by JLL India, Rajajinagar, Whitefield, HSR-Layout and Mahadevapura are some of the emerging micro-markets, which are witnessing rapid retail development. Of late, north Bangalore is gradually witnessing increased retail activity in areas such as Kammanahalli Main Road and Sahakar nagar while Marenahalli Road (JP Nagar Outer Ring Road stretch) in the south-west of the city is gaining prominence mainly due to limited shopping mall space in the vicinity.
Marwaha says, “Despite low commercial activity in north Bangalore, the region has witnessed increased residential supply. Shift in developer interest towards this location has given rise to many organised retail projects. Key developers have planned shopping malls here. The ORR-Sarjapur belt will become an attractive micro-market for retail development due to lack of existing and under-construction mall space. Meanwhile, north Bangalore and Old Madras Road have great potential for development of malls within the next three to five years.“
Outlook for the sector
Ram foresees Bangalore’s retail market remaining robust, and continuing to grow over the next few years. With the development of new high streets, retailers have new avenues for expansions, as well as the possibility of closer interactions with customers. Shopping centre development in the city has also taken up steam, with newer developments being planned across the city.
He says, “Over the next few years, with large-scale shopping centres scheduled to become operational, Bangalore should double its organised retail offering, making it that much more attractive for the city’s consumers, who will have a wider shopping choice and more convenient retail destinations to choose from.“
Source: Times Property, The Times of India, Bangalore
Pune is probably the only real estate market in the country that has continued to remain positive in the last one year or so when markets across the country were reeling under the pressure of falling values and rising inventory levels. This positivity seems to have hit those looking for properties exclusively as an investment.
As per the latest Housing Sentiment Index (HSI) report by Magicbricks and IIM-B, the HSI for buyers looking to buy a property in Pune for investment has risen to 146 in the Jul-Sep 2014 quarter. This is a significant rise from the Apr-Jun 2014 quarter wherein the HSI for the same segment of buyers was reported to be 124. This implies that, investors targeting Pune are optimistic about the market and expect prices to rise in the coming months. This also justifies their decision to invest now.
Data with Magicbricks also supports investments in Pune. For instance, Pune is the only city which has managed to record a rise in the City Index value (which is a direct function of the supply and capital values in the market) quarter-on-quarter in the last one year. This is also visible in the capital appreciation that prime residential localities witnessed in the last one or two years.
As per PropIndex, some of the top ten preferred residential localities for sale in Pune, which have performed consistently, include Wakad, Kharadi, Magarpatta, Hadapsar and Wagholi. All these localities have recorded a rise of 15-25 per cent in capital values in the last two years while the appreciation has been as high as 40-50 per cent in the last three years.
NRI investments in Pune are also at an all time high. As per a recent report by ASSOCHAM, Pune was the third most preferred city for investment by NRIs.
What has kept Pune’s real estate burgeoning is the emergence of a robust IT/ITeS sector along with the traditional manufacturing business. While IT has catapulted it to a level where it can easily compete with major cities such as Mumbai and Delhi in terms of real estate growth, the recent emphasis on the manufacturing sector by the new government would only enhance its potential as an investment destination.
Increased employment in the city in the recent past has also given an impetus to the housing need in the city. “All industries in Pune are booming today. The city’s impressive commercial space absorption statistics provide a reliable indicator of the generated employment as well. Factoring in that Pune saw approximately 4.7 million sq ft of Grade A office space leased in 2013, and using the rule of thumb that every 100 square feet result in one generated job, Pune has generated 47,000 jobs or more in 2013. The compounded annual growth rate of job creation over the last five years has been in double digits – setting a pace that indicates Pune will soon overtake larger metros like Mumbai to become one among the five key cities of India,” highlights Om Ahuja, CEO, residential services, JLL India.
At a time when real estate enthusiasts are planning to invest due to multiple discounts and low base prices prevailing across markets, Pune definitely seems to be an ideal choice worth venturing into.
Sruthi Kailas, Magicbricks.com Bureau
Sruthi Kailas is a keen market researcher and is currently a part of the content and research team of Magicbricks.com
Global companies shifting to Pune may boost realty
Ravi Kirloskar, a banker working in the Bandra Kurla Complex, Mumbai, gets to know that in the near future he might have to move to Pune. His search for a rental accommodation in Pune has already started…
Pune, so far home to many migrant employees from elsewhere in India, comes up with great news for the real estate! Many reputed financial players have taken up office space in Pune’s Airport Road while others are queuing up at reputed developer firms to make their bookings. Where can we expect the impact to be most in Pune?
Popular residential areas along the Airport Road includeVishrantwadi, Yerwada, Viman Nagar and Nagar Road.“Kharadi, also a sought after rental destination, is away from the hustle bustle of city life and yet just a little over 3km from the Airport Road, says Poonam Kothari, broker, Vimal Trendy Homes Property Management Company.
“There is an excess demand for rental housing while the supply is seemingly less,” adds Kothari. This brings us to what Ashutosh Limaye, head, Real Estate Intelligence and Research has to say. “While most of the new office base seems to have come to the Airport Road, the good news for residential real estate is that there are multiple corridors that would be favourably impacted. No single corridor can be said to receive undue advantage of this shift,” notes Limaye.
“Pune’s dependency on the IT/ITeS sector is significant. With the inclusion of BSFI, the economic drivers have diversified. This would surely translate into a direct indicator of residential growth,” adds Limaye.
“In and around Pune’s business catchments, this dynamic is very clear. With an increase in housing demand there is a firming up of residential prices. One can also expect mid to long term capital appreciation,” says a local property consultant.
What is working well? Cost advantage – both for companies and buyers. “Most banks had to have an office close to the Reserve Bank of India. But the operating costs were escalating and since support teams do not interact with clients, maintaining an office on the site becomes difficult,” says Kirloskar.
To add to it, realtors also believe that rational pricing when compared to Mumbai and the benefit of being a smaller city, the commute time to work or school is less, reducing the overall cost of living.
While the rental market is positively impacted, in due course of time, the capital market also stands a good chance. An upcoming edition of PropIndex (Jul-Sep 2014), the India Apartment Index by Magicbricks, suggests that Wakad, Magarpatta and Pimple Saudagar are popular rental markets. There is a good chance that prospective tenants might want to stay in these areas, all within 18 km distance.
Otherwise driven by the IT/ITeS population working at Hinjewadi, the locality boasts proximity to infrastructurally sound markets of Baner, Aundh, Balewadi and Pashan. Its closeness to Pimpri-Chinchwad Industrial Area is also one of the reasons why most of the spill-over population from Aundh and Baner decides to zero on Wakad.
“Additionally, the Pimpri Chichwad Municipal Corporation (PCMC) has been working for improved sanitation and drainage facilities. Roads and infrastructural development, regular supply of water and electricity have also been strong reasons,” says Vikram Joshi, owner, Sree Ganesh Properties.
Central Pune’s Magarpatta area calls in prospective tenants employed from either multinational companies, IT parks, Cybercity, tele-communications as well as BPOs. For most buyers it is a strategic location, with proximity to NH-9 that aids connectivity to Pune’s central areas works. The upcoming commercial areas are also inviting.
While owning a home in Pimple Saudagar might not fit everyone’s budget, the rental market with all comforts of a well established social infrastructure, might be pleasing to everyone. “Rental values are slowly climbing but maintenance costs are comparatively less, as compared to other localities,” says Ganesh Vidyarthi of GVK Properties.
From the connectivity point of view, Pimple Saudagar’s proximity to Hinjewadi, the railway station and the airport works well for most buyers.
Throughout the city, 2BHK units are preferred. Magarpatta, being the costliest, has values between Rs 16,000-21,000 per month. As for Wakad and Pimple Saudagar, you could get a standard flat for within Rs 16,000 monthly.
Sneha Sharon Mammen, Magicbricks.com Bureau
Sneha is a real estate market research enthusiast and is currently part of the content and research team of Times of India’s property wing- Magicbricks