Track2Realty: 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.
These are the findings of 99acres.com Insite which is a quarterly report focusing on buying and rental price trends in residential real estate across 7 major cities of India.
Commenting on the report, 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
| Locality | Price per square foot in Q1-14 (in Rs.) |
Price per square foot in Q2-14(in Rs.) |
% Increase |
| Bhiwandi | 2800 | 3600 | 22% |
| Kanjur marg (west) | 10750 | 13450 | 20% |
| Mulund | 11750 | 14350 | 18% |
| Khopoli | 2800 | 3350 | 16% |
| Malvani | 8750 | 9950 | 12% |
| Yari Road | 19250 | 21450 | 10% |
| Bhandup (East) | 12250 | 13500 | 9% |
| Sheel Phata | 4450 | 4900 | 9% |
| Mulund (West) | 13500 | 14600 | 8% |
Localities showing maximum decline in prices per square foot in Q2-14 over Q2-13
| Locality | Price per square foot in Q1-14 (in Rs.) |
Price per square foot in Q2-14(in Rs.) |
% Decrease |
| Oshiwara | 18200 | 15550 | -17% |
| kurla (west) | 12650 | 11450 | -10% |
| Dombivili (East) | 5450 | 5000 | -9% |
| Versova | 22250 | 20450 | -9% |
| Neral | 2600 | 2400 | -8% |
| Ambernath | 3300 | 3050 | -8% |
| 4 Bunglows | 18950 | 17550 | -8% |
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
| Locality Name | Rental for 3 BHK in Q2-13(in Rs.) | Rental for 3 BHK in Q2-14(in Rs.) | % Increase |
| Juhu | 80600 | 101400 | 21% |
| Santacruz (West) | 72800 | 91000 | 20% |
| Bandra (East) | 67600 | 81900 | 17% |
| Parel | 97500 | 117000 | 17% |
| Mira Road | 15600 | 18200 | 14% |
Localities showing maximum decline in rents of a 3BHK house in Q2-14 over Q2-13
| Locality Name | Rental for 3 BHK in Q2-13(in Rs.) | Rental for 3 BHK in Q2-14(in Rs.) | % Decrease |
| Oshiwara | 18200 | 15550 | -17% |
| kurla (west) | 12650 | 11450 | -10% |
| Dombivili (East) | 5450 | 5000 | -9% |
| Versova | 22250 | 20450 | -9% |
| Neral | 2600 | 2400 | -8% |
