National Property Index (NPI) grew by 1 per cent as per Magicbricks PropIndex (Jan-Mar 2014). The index in its third year showed that home-buyers preferred to be in the wait-and-watch mode due to the general elections.
“Capital values fell in all cities, except Pune. Over 30 per cent of the tracked localities registered a fall of 1-9 per cent. However, rental values rose by 2-16 per cent across India with over 50 per cent localities across cities registering a rise.” the latest Magicbricks PropIndex reports.
City Index values, computed as a ratio of number of listings to prices, rose by 1-3 per cent, indicating that buyers who purchased for regular rental returns were winners. Ahmedabad and Ghaziabad registered a negligible drop of 1 per cent in the index values.
“The year 2014 started with anticipation among real estate stakeholders concerning the 16th general elections in the country. These Lok Sabha elections kept the Indian Real Estate Market in the wait-and-watch mode. This was reflected in the National Property Index, registering a 1 per cent change in the Jan-Mar 2014 quarter.” explains Sudhir Pai, Business Head, Magicbricks.com
Mid-budget range of Rs 30-50 lakh remained the preferred category, especially in Bangalore and Pune.
Premium luxury properties remained oversupplied across cities despite a robust demand of over 20 per cent. Mumbai topped the chart with maximum demand for properties worth Rs 1 crore and Above, followed by Delhi and Gurgaon.
High-end properties worth Rs 2 crore and above remained more in demand in Delhi, Gurgaon and Mumbai. In all other cities luxury demand remained in the
Rs1 crore and Above range.
Robust Smaller Markets
In the current PropIndex issue, Greater Noida has been incorporated as an independent city, recording growing demand for residential properties and offering several options in the affordable range.
“The formation of a new government is expected to infuse fresh life into the real estate market and improve home buyer sentiments. In the Jan-Mar 2014 quarter, property markets remained sluggish. However, robust demand from end-users arrested any significant change in property values.” adds Jayashree Kurup, Content & Research Head, Magicbricks.com
- Rental values rose in nearly 75 per cent localities. Of these, 35 per cent registered an increase of over 5 per cent
- Large housing units of 4BHK & Above worth over Rs 2 crore were more in supply than in demand, increasing the demand-supply gap in the last six months
- A small rise of 3-4 per cent was noted in capital values during the Jan-Mar 2014 quarter. Localities such as Greater Kailash-I, Safdarjung Enclave, Shivalik, Malviya Nagar and Panchsheel Enclave in South Delhi registered the maximum increase of 3-4 per cent
- Over 82 per cent localities recorded a rise between 2-16 per cent in the average rental values
- Rumours of resolution of litigations on the Dwarka Expressway led to it rising from the fifth to the third position in the chart of the top ten preferred localities for sale
- Golf-Course Road was given the thumbs down by consumers for both sale and rent because of the ongoing metro work along the stretch. This downgraded the locality preference by 2 points
- Sectors 100, 137 and 143 along the Noida-Greater Noida Expressway and Sectors 74 and 78 posted over 25 per cent increase in the capital values in the last two years
- Delay in possession reduced the preference for Sector 128 by one position
- Upcoming new projects in Lal Kaun at low base price of Rs 2,600-3,300 per sq ft captured the buyer’s attention. This pushed up the locality in the top ten preference chart
- Panvel and Ulwe offered maximum options in the Rs 20-40 lakh range, in the new developing projects in Navi Mumbai in the Jan-Mar 2014 quarter
- The average rental price recorded a rise of 3-12 per cent in over 90 per cent of the tracked localities
- Robust rental market led to improvement in the gross rental return on investment to 1.87-3.47 per cent
- Demand for residential housing increased by 2 per cent for properties worth Rs 1-2 crore, however, supply remained stable
- Pune noted a rise in average capital values in over 80 per cent of the tracked localities
- The city offered maximum number of newly built ready-to-move-in multi-storey apartments in the range of Rs 50-60 lakh in the 2BHK category. Maximum availability was in Wakad and Pimple Saudagar
- Demand for premium properties worth Rs 1 crore and Above increased by
4 per cent, while it dropped by 5 per cent in properties worth Rs 40-70 lakh
- SG Highway moved up three positions to settle at number three due to commercial set-ups and availability of both ready-to- move-in and under-construction properties at affordable prices
- Over 70 per cent localities recorded a rise of 2-10 per cent in the average capital values
- Vadapalani and Virugambakkam in the Central-west and Nungambakkam in the Central witnessed a sharp drop of 10 per cent
- Of the tracked localities, 50 per cent recorded a rise in rental values
- Demand and supply for luxury units dropped by 2 per cent for properties worth Rs 1 crore and Above
- The buyer demand shifted from 2BHK to 3BHK units. Maximum properties delivered were in the 3BHK segment, within the budget of over Rs 70-80 lakh
- Central Bangalore witnessed the maximum demand for high-end units worth Rs 1 crore and Above
- Bellandur, Whitefield and Marathahalli in East Bangalore clocked the highest increase of over 15 per cent in average capital values in the past one year
- Over 70 per cent of the tracked localities recorded a rise in rental values
Full report details can be accessed here – propindex.magicbricks.com
ClIent Speak on Propindex
“Real estate sector not being so organized as compared to other major sectors, this (Property Index) data is really helpful in bringing more insight to developers for decision making. Nice detailing and survey done.”
Rikesh Patel, Marketing Head, Pratham Enterprise, Vadodara
PropIndex is a must for all real estate professionals, providing valuable information on market trends on both macro and micro levels. The detailed analysis helps even a layman to understand every aspect of the current situation and the risk in investment. Keep up the good work. Best wishes for the future.
Amit Chopra, Director, Escala Realty India, Caranzalem, Goa
PropIndex has helped builders to understand the rate structure prevailing in a particular area and also helps to plan projects based on demand for the right product mix. It helps customers in forecasting property values in a particular area.
Hitesh N Poddar, Director Marketing, Nirman Group, Nashik
PropIndex gives me the right information about customer sentiments. An incredible job done by Magicbricks.com. I wish them good luck and waiting for some more innovative ideas to come through the Magicbricks box.
Sumit Goyal, MD, Nirwana’s Greens
PropIndex tells me the right rate and trends of properties Pan India. We follow the rates and trends of Delhi-NCR which was quite authentic. After that we plan to diversify towards the NCR.
Harmeet Singh, MD, Harji Realtors
About Magicbricks.com PropIndex:
PropIndex in its third year has accumulated a wealth of data/analytics on price/locality trends and market performance. PropIndex has been produced basis listing of apartments and their actual capital and rental values available on the website, since no credible property index can be a function of direct values as the changes are governed by multiple factors.
The data provided by PropIndex aids in decision making. Used in tandem with a host of advisory services available online at advice.magicbricks.com, the effort is to make this a one-stop shop for all property queries, requirements and information.
PropIndex is prepared and published by the country’s leading property portal Magicbricks.com, as a tool, which empowers property seekers and investors with detailed information on the movement of residential apartment prices and supply of properties in India.
Magicbricks has over 600,000 active properties posted by more than 1,50,000 active users in 300 cities and 10,000 localities. Users include owners, agents and developers.
Apartment values are based on listings on Magicbricks.com. These include multi-storey apartments and single units on plotted developments, referred to as builder floors.
The Index is structured in a way that individual properties are aggregated into their respective cities and then to the National Index. Weightages for PropIndex are based on the supply of properties within the locality/city. Based on this structure, PropIndex gives a realistic picture of trends in price/supply across different property markets in each city. Different weightages for Listed Price Monitor/Rent Monitor are used. Therefore, PropIndex along with tables provided for Listed Price Monitor, Rent Monitor, Yield Monitor and Capital Values gives a perspective of the property market performance in the quarter.
Listing and its values/supply provide a level of understanding into the market with meticulous data checks to prevent aberrations. These are based on statistical calculations, industry inputs and logical interpretations. The National Property Index (NPI) is indicative of the extent of activity and price movements in the major cities and localities active on Magicbricks.com. The index includes the top 11 cities (selected based on their activity levels) with an individual city report for each. While the NPI and its movements are of interest to the expert community of bankers, builders and investors, the PropIndex also explains the nuances of index movements at the locality level helping the consumer base on Magicbricks.com.
Insights into the consumer demand have been gathered through analysis of search information on the site. This helps to understand the best localities by demand, the type, configuration and the budget-wise preferences. The PropIndex is the result of meticulous research at the locality level and through detailed discussions with experts at Magicbricks.com’s offline and online initiatives. The Indian real estate market is dynamic and the PropIndex reflects those changes. Since it is derived from a dynamic database, additions and deletions of localities happen as a function of market changes.