MUMBAI

PROPERTY CAPSULE
2015

MUMBAI

Ghodbunder Road
1%

Manpada
2%

Borivali (East)

Kalyan
Kalyan

6%

Andheri (East)
Year 2015 failed to bring the muchneeded relief to the real estate market
5%
of the Mumbai Metropolitan Region
(MMR). While the real estate markets
of Bangalore, Pune and Kolkata showed
some resilience, Mumbais realty continued
to suffer. Property registrations and new
launches witnessed a dip in most
of the zones.

Powai
-2%

Seawoods
-3%

Kharghar
4%

Navi Mumbai
Navi Mumbai

Cue Parade

High property prices and unsold inventory

continued to plague the landscape. Additionally,
proposed increase in Floor Space Index (FSI), state
governments draft Development Policy 2034 and
delay in infrastructure development marred the
citys realty. Even the financial schemes, low down
payment options and freebies offered by developers
failed to infuse momentum into the market.

-6%

Jan-Mar 2015 Vs Oct-Dec 2015

Interestingly, the subdued sentiments of buyers were

not shared by investors. The city witnessed a rise in
Private Equity (PE) investments and Foreign Direct
Investments (FDI) in 2015, while Rupee devaluation
led to increase in investments by Non Resident
Indians (NRIs), especially from Dubai and Singapore.
This brought the much-needed liquidity in the cash
crunched market of the MMR.

Delay in the
construction of
major infrastructure
projects
marred Mumbai
Metropolitan
Regions realty.

Investment by
HNIs, PE firms
has increased
significantly in
the MMR in the
last one year.

The year also heralded the growth of Mumbais

commercial market, especially e-commerce and
Banking, Finance Services and Insurance (BFSI)
companies. Vacancy level in commercial setups
dropped and a few big tickets sales took place. The
Versova-Andheri-Ghatkopar metro network and the
Santacruz-Chembur Link Road, which were completed
last year, have contributed to the improvement in
commercial activity in the Secondary Business Districts
(SBD) of West and Central Mumbai.

According to experts, the rise in PE and FDI funds is

due to the growth in GDP, controlled inflation and
various lucrative schemes being offered by developers.
However, most of these investments have only been
made in projects of reputed builders.

POLICY CHANGES
Increase in stamp duty charges
The cabinets approval to increase stamp duty by one
per cent and levy cess on Transfer of Development
Rights (TDR) for redevelopment projects in the MMR,
was not welcomed by private builders. The move is
expected to further increase property prices.

Keeping in mind the increasing enquiries by NRIs, few

developers have even launched projects particularly
for NRIs in Thane and Navi Mumbai.

Mumbai Development Plan 2034

In February 2015, a draft of Development
Plan 2034 was released by the Municipal
Corporation of Greater Mumbai, which
faced a lot of criticism by residents,
developers and activists. The plan was later
scrapped and a revised plan is expected to
be released soon. The uncertainty looming
over the Development Plan kept many
developers from launching new projects.

2015
4%
2%

2%
2%
1%

H1

Increasing Floor Space Index (FSI)

In March 2015, the state government
increased the FSI in Mumbai suburbs from
0.33 to 0.60 (on payment a premium).
The amount of premium was increased to
60 per cent of the current Ready Reckoner
rate, from 30 per cent charged previously.
This led to a rise in property prices in
Andheri, Bandra, Chembur, Ghatpokar,
Juhu and Santacruz.

H1

1%

H1

H2

H2

MMR

H2

Navi Mumbai

Thane

Spoilers:

Growing number of illegal constructions in Navi

Mumbai are upsetting the realty scenario.
In November, Bombay High Court announced
demolition of 99 illegal buildings.

MUMBAI

Capital and rental values remained unchanged in

Mumbai with developers maintaining property prices
in order to infuse some positivity among home buyers.
Absence of end-users scarred the real estate market
of Mumbai heavily. Localities in central suburbs saw
robust activity in the last one year.

Even though work on NAINA has begun, the project

has been delayed for years, impacting the real estate
market of nearby localities

Delay in the construction work of various SEZs has

impacted the commercial and residential market

Growth Drivers:

The Reserve Bank of Indias repo rate cut by 25 bps in

March 2015 and 50 bps in September 2015 brought
some cheer among end-users

Increasing NRI and PE investments allowed developers

to complete their existing projects

Construction work on Phase-II of monorail connecting

Wadala to Jacob Circle commenced

Spoilers:

Delay in the construction of Mumbai Urban Transport

Project (MUTP), Jogeshwari-Vikhroli Link Road (JVLR),
SantacruzChembur Link Road (SCLR), Metro and
monorail Phase-I have led to subdued sentiments

The construction of Trans Harbour Link Road (WorliSewri connector) has been put on hold

THANE & BEYOND THANE

Thane continues to be the refuge of mid-segment
home buyers. Though the region witnesses
slow commercial growth, some of the major
office transactions and leasings took place along
Ghodbunder Road this year.
Growth Factors:

State government approved of an additional 0.33 FSI

for residential and commercial projects

The proposed Wadala-Ghatkopar-Thane-Kasarvadavali

metro is expected to reduce the time travel, thus
positively impacting the realty market of nearby areas

PROPERTY TYPE

Most of the housing supply in Mumbai is in the price

bracket of Rs 1crore and above, making it difficult for
majority of buyers to afford a property in the city

JAN-MAR 2015

OCT-DEC 2015

Residential Apartments

97%

Independent Houses/Villas

1%

97%
1%

Builder Floors

2%

2%

NAVI MUMBAI
In comparison to Mumbai and Thane, Navi Mumbais
realty performed better in the last one year. The region
had the advantage of better planned infrastructure
and presence of commercial and industrial sectors.
The micro-markets of Panvel, Kharghar, Ulwe, Taloja
and Kalamboli performed especially well.

BUDGET

Affordable Housing

Construction work on Navi Mumbai Airport Influence

Notified Area (NAINA) commenced

Nearly 80 per cent of the work of Line 1 of Navi

Mumbai metro corridor has been completed

OCT-DEC 2015

33%

38%

20%

22%

37%

36%

(Within Rs 60 Lakh)

Growth Drivers:

JAN-MAR 2015

High-Income Housing
(Rs 60 Lakh - Rs 1 Crore)

Luxury Housing (Rs 1-2 Crore)

Ultra Luxury Housing (Rs 2-5 Crore) 10% 4%

Spoilers:

READY TO MOVE VS UNDER CONSTRUCTION

JAN-MAR 2015

OCT-DEC 2015

Ready to Move

62%

63%

Under Construction

38%

37%

High unsold inventory has impacted the real estate

market of Thane

Several illegal constructions have sprung up in

the region

Age of inventory has significantly gone up in the region

FUTURE OUTLOOK

CONFIGURATION

JAN-MAR 2015

1BHK
2BHK
3BHK
4BHK

32%
43%
20%
5%

OCT-DEC 2015
38%
41%
18%
3%

The Swapnapoorti Scheme by CIDCO offering

affordable homes in Kharghar magnetised buyers

Most of the projects launched in Thane targeted the

mid-segment group, which attracted a lot of enquiries

IN NEWS

Municipal Corporation
of Greater Mumbai
proposes an increase in
FSI across the city

APRIL 2015
State government scraps
Mumbai Development
Plan 2015-2034
Government hikes Stamp
Duty rates for the city

JUNE 2015
Environment Ministry
refuses green approval to
Trans Harbour Link
CIDCO announces an
online approval system
for real estate projects
Environment ministry
approves the coastal road
project

The revised Mumbai Development Plan 2034 is one

of the most anticipated policy changes for 2016

A housing regulatory authority is also expected to be

established by 2016

With the Maharashtra government planning a new

International Business and Finance Centre (IBFC)
along the Thane-Belapur Road, it is expected to be
the most sought-after destination for office spaces
in the near future

Under-construction metro from DN Nagar and

Andheri East to Dahisar and monorail from Wadala to
Jacob Circle are expected to impact the rental market

The IT/ITeS Policy 2015 is expected to increase

the footprint of these companies in Mumbai and
Navi Mumbai.

JULY 2015
Maharashtra CM
announces completion of
Navi Mumbai
International Airport by
2019

JANUARY 2015
FEBRUARY 2015

Ready reckoner rates in

Mumbai surge by 30-40
per cent

SEPTEMBER 2015
MARCH 2015

Work on second phase of

Mumbai monorail
commences
CM approves of additional
FSI for Thane projects

Mumbai Municipal
Corporation revises
property tax structure
Mumbai government
decides to raise premium
on incentive FSI

AUGUST 2015
Maharashtra
government
announces new
IT/ITeS policy oering
extra FSI to IT rms

OCTOBER 2015
Government hikes
stamp duty on
property transactions
by 1 per cent

NOVEMBER 2015
MAY 2015

Smart city like

makeover proposed for
Palghar
State government
proposes a super
expressway between
Nagpur and Mumbai

Maharashtra
government plans
50,000 budget homes

DECEMBER 2015
State govt decides
against increasing
ready reckoner rates
in 2016
Maharashtra
government sanctions
Rs 53,000 crore for
infra projects

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