Mumbai realty prices see modest appreciation in Jan-March

99acres.com

>> Average property prices in Mumbai have seen 2% increase  in Q2-14 over Q1-14

>> Average rentals in Mumbai have  seen 3% increase  in Q2-14 over Q2-13                                                                                            Mumbai, 3rd September, 2014: 99acres.com Insite is a quarterly report focusing on buying and rental price trends in residential real estate across 7 major cities of India.  According to this report, in Mumbai, the residential property prices per square foot have seen a minor increase in Q2-14 as compared to Q1-14.  Annual comparison (Q2-14 with Q2-13) shows a 7% increase in capital prices.Rentals of a 3 BHK house have also witnessed northward movement with yearly comparison showing a 3% growth in Q2-14 as compared to Q2-13. Commenting on the report, Mr. Vineet Singh, Business Head, 99acres.com, said “Mumbai real estate market is grappling with high property prices which is a perennial problem.  The region is witnessing a slack due to delay in new project launches caused primarily by multi window clearance system. The complexity in project clearance coupled with ever changing rules is stagnating the Mumbai real estate market. The city’s realty will face better times only when the rules and regulations are made more pliable”. If we compare the price trends with other metros, Delhi –NCR region has seen no change in capital prices while Bangalore has seen a dip of 5% in prices per square foot while in terms of rentals, Delhi-NCR region has seen a dip of 3% and Bangalore has witnessed a 4% increase in rents in Q2-14 as compared to Q2-13.  Price Analysis                The quarter on quarter comparison shows a miniscule increase in prices per square foot.  The builders in the region have adopted wait and watch mode since the assembly elections are due next year and builders expect policy changes to wrought in post the elections. The city will see a wave of housing especially in the areas of Thane and beyond and Infrastructural reforms will see better connectivity with the periphery areas.Localities showing maximum increase in price per square foot in Q2-14 over Q1-14

Localities showing maximum decline in prices per square foot in Q2-14 over Q2-13

Rental Analysis:Annual comparison shows a 3% increase in rents. Mumbai witnesses lot of immigrant population which creates demand for rental housing. The city is also facing redevelopment of old houses especially in areas of Andheri and Goregaon. It will further give thrust to the rental landscape in the region.   Localities showing maximum increase in rents of a 3BHK house in Q2-14 over Q2-13

Localities showing maximum decline in rents of a 3BHK house in Q2-14 over Q2-13

Methodology The price trends have been compiled for the previous two quarters from Oct- Nov-Dec 2013-Jan-Feb-March 2014. The localities covered in the section have been carefully chosen to reflect popular demand and supply destinations. The report reflects trends on property prices for the residential apartment segment and the underlying dataset is that of the asking prices (and not the transaction prices). The unit for measuring property rate is price per square feet and the quarters are defined as per the calendar year. The Analytics team of 99acres.com employed the following methodology for plotting the trends: Data cleansing - Our team has taken utmost care to ensure spam listings do not skew the numbers that we present in this report. Since the figures we have quoted here are asking prices and not the actual transaction prices, it was important to identify entries which were spurious and eliminate them from the data set. The following due diligence has been conducted to ensure hygiene of the data:>> Sample size was carefully chosen to ensure significant number of data points as well as to cover as many localities as possible. >> Outliers were identified and treated.

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