City PropIndex & City Price MonitorCity PropIndex exhibits how the respective city index has performed inthe quarter Apr-Jun 2011 vis-à-vis Jan-Mar 2011. City PropIndex reflectsthe weighted average of the price per square feet & the supply ofproperties across the city.City Price Monitor is computed basis a movement in the “average rateper square feet” across the city. It indicates percentageincrease/decrease in the average rate per square feet in the respectivecity during the period Apr-Jun 2011 vis-à-vis Jan-Mar 2011.
VOL 1, ISSUE 1, APR-JUN, FY 2011-12NATIONAL PROPERTY INDEX (NPI) APR-JUN 2011 n National Property Index (NPI) rose 3% n Economic corridors drove demand for residential property n New corridors displayed enhanced level of activity as compared to established city areas. n Changing trends in demand for affordable and premium properties across localities, shifted traditionalAPR-JUN 2011 and Chennai too posted 2-3% dip benchmarks during the Apr-Jun 2011 period.The first MagicBricks PropIndex The NPI is a weighted average of n High cost residentialfeaturing apartment properties in developments yielded low11 cities across the country went city indices. The biggest contributors to the NPI were the return vis-à-vis small ticketup by 3% in the Apr-Jun 2011 price developmentquarter as against the Jan-Mar most active markets of Mumbai,2011 quarter. There have been Gurgaon, Bangalore, Pune andsignificant regional variations. Ghaziabad. However, certain localities areThe increase in the National Each city index value depends on more active than others and canProperty Index (NPI) reflects the the type of property coming up in contribute significantly to theweighted average of rising and each locality and how well it index values of that city.falling supplies and prices across matches consumer demand.the cities. The index is impacted by the IN THIS REPORT:In the NPI, out of 11 cities number of properties in each National Property Index...............1covered, 8 have shown a positive locality and the locality’s weightage in the city, based on its Delhi.........................................4trend in their city index and 3cities have shown a decline in contribution to the city’s property Gurgaon....................................6their city index. databank. Noida & Ghaziabad.................... 8The cities such as Noida and The index is based on a mix of Mumbai....................................11Kolkata topped the Magicbricks newly developing and established localities as well as new and old Pune........................................14PropIndex with 13% and 11%increase followed by Gurgaon constructions. Ahmedabad..............................16and Ghaziabad from the NCR. The composite index value of a Kolkata...........,........................ 18Pune, Mumbai and Bangalore city draws from the changing Chennai....................................20posted 2-3% growth. index values of different Hyderabad................................22Delhi showed the steepest fall in localities. This indicates whether the city as a whole has shown Bangalore.................................24index values while Hyderabad rising or falling value trends. Annexures.................................27
VOL 1, ISSUE 1, APR-JUN, FY 2011-12 2 NATIONAL PROPERTY INDEX with average prices of Rs 16,000- Upcoming properties in Sectors 19,000 per sq ft fell in numbers and 76 and 78 in the Rs 3,000-3,200 perThere have been certain common received a lower weightage in this sq ft range witnessed boost inthreads across different city index quarter while affordable numbers and received a highervalues. properties in the value range of weightage in this quarter, adding Rs 6,000-7,000 in Dwarka and to the rise of the city’s indexl New properties in new Vasundhara rose in numbers and value. A similar trend was developing areas or redeveloped tipped the city’s index witnessed in Sectors 143 and 168 properties in older areas seemed downwards. along the Taj Expressway . to be in demand across the cities, primarily because they Noida showed 11% increase in Ghaziabad Index rose 7%. The boasted newer formats and index values. The major major contributors to the change lifestyle features. contributors to the change were were Indirapuram, Raj Nagar Sectors 76, 78, 143 & 168. Extension and Crossingsl Supply of new properties, especially along new corridors of growth have significantly impacted the index across different cities.l Capitalvalues across cities rose on the back of either enhanced demand because of local factors or a huge amount of supply of new projects along growth corridors at affordable rates.l Bothenhanced or crunched supply and rising or falling values have impacted city indicesDelhi, despite the 11% fall wasone of the most active propertymarkets with value growthregistered by most localities.However, the mix of propertychanged dramatically in thequarter. The major contributorsto the change were SafdarjangEnclave, Saket, Dwarka andVasundhara. Premium propertiesin Safdarjang Enclave and Saket
VOL 1, ISSUE 1; APR-JUN, FY 2011-12 3Republik. The latter two are newly but have clocked significant rise indeveloping areas where properties the number of listings, have TOP YIELD GROSSERSare in the possession stage. further weakened the index. Rental yield is a factor of the changes inTherefore, there was an increase Average values fluctuated across rental values locality-wise vis-a-vis thein numbers and received higher the city, based on local drivers. changes in capital values. Given belowweightage in this quarter and are the top yield-grossing localities ininclined the city index upwards. The Chennai Index showed 3% each city dip. Madipakkam and PerungudiGurgaon Index remained 6% up were the major contributors to the Locality Gross yieldin this quarter. New supply in dip. Fall in values by 6-8%, EM Bypass, Kolkata 5.77%upcoming areas such as Gurgaon- together with increase inFaridbad Road and Sector 92 weightage in this quarter, pushed OMR Road, Chennai 5.33%resulted in higher weightage in the index down. However, other Kondapur, Hyderabad 4.67%this quarter coupled with increase active localities such as Bandra East, Mumbai 4.53%in values, pushing the index Medavakkam and Velacheri,upwards. Other locations such as where values and weightage rose SG Highway, Ahmedabad 3.82%Sohna Road and Golf Course Road in this quarter, has arrested the Hadapasar 28, Pune 3.78%registered increase in values by fall of the index.5-10%. However, there was a fall in Indirapuram, Ghaziabad 3.27%weightage on account of fall in Inspite of registering an uptrend Sector-82, Noida 3.11%number of listings. The city in values in majority of the locations, the Pune Index showed Vasundhara Enclave, Delhi 2.73%average remained 2-6% up.Aberrations were noticed in eight a nominal increase of 3%,localities, which may simply be a primarily dropped in number of listings in localites such as CAPITAL GAINSfunction of market dynamics orweak infrastructure. Magarpatta and Kharadi. Though The table given below indicates values rose overall in these maximum increase in capital values inThe Kolkata Index rose 11% localities, there was a fall in the each cityprimarily because of a rise in the number of listings in these areasnumber of listings and values in leading to a lower weigthage in Locality % Changeareas such as New Town, EM this quarter. Noida, Sector-45 19%Bypass, Jadavpur and Alipore. Allthese localities registered a spurt Mumbai’s property market Bangalore, Koramangala 19%in values coupled with significant remained flat except for new developing pockets such as Powai- Delhi, Panchsheel Enclave 17%increase in numbers and receivedhigher weightage in this quarter. Kanjur Marg, Navi Mumbai areas Chennai, Porur 15%All localities in the Kolkata city of Virar and Vasai as also theindex rose by 2-9%. Kalikapur Thane, Kalyan, Mira Road and Mumbai, Majiwade 14%registered a 14% rise even though Bhayender areas, where 3-12% rise Kolkata, Kalikapur 14%the number of listings held steady . in values buoyed up the index byThe only areas that dropped in 2-3%. Worli too showed positive Gurgaon, Dlf City Phase II 13%values in the city index were trends. Hyderabad, Nizampet 13%Santoshpur and Baguiati with a The Ahmedabad city index4-5% drop. showed a nominal increase of 2% Ahmedabad, Bodakdev 13%Hyderabad’s property market has on the back of increase in values Pune, Warje 11%been depressed because of in majority of the locations acrosspolitical turmoil, even though the city. Ghaziabad, Raj Nagar Extn 3%economic activity still remains The Bangalore Index rose bystrong. Professionals from the IT 2-3%. Banerghatta Road andsector are the main drivers with Koramangala registered a rise inrealtors offering special discounts values while the number ofto woo them. The Hyderabad city listings remained steady.index fell 3%. Upcoming localitiessuch as Manikonda and Kondapur, New investment hubs such asdropped in values and rose in Sarjapur Road, Hebbal, Yelahanka,number of listings, thus inclining Marthahalli and Whitefield havethe index downwards. On the shown 3-7% rise in values andother hand, old localities such as stable number of listings. AirportBegumpet and Maredpalli, which Road was the only locality thattoo have registered fall in values showed 13% rise in values.
METHODOLOGYMagicBricks to their respective city as price movements across which in turn is weighted to cities and localities in thePropIndex the National Index. major cities active onMagicBricks PropIndex is a Weightages for PropIndex MagicBricks.com. The indextool which empowers are based on the supply of includes the top 11 citiesproperty seekers and properties within the (these have been choseninvestors with detailed locality/city Based on this . based on their activityinformation on the structure, PropIndex gives a levels) and has anmovement of residential realistic picture of trends in individual city report forapartment prices and price/supply across each of these cities. Whilesupply of properties in different property markets the NPI and its movementsIndia. No credible property in each city We have used . are of interest to the expertindex can be a function of different weightages for community of bankers,direct values as the changes Price Monitor/Rent builders and investors, theare governed by multiple Monitor. Therefore, read as PropIndex has also takenfactors. a whole, PropIndex along care to explain the nuances with tables provided for of index movements at theMagicBricks PropIndex has Price Monitor, Rent Monitor, locality level that wouldtaken this reality into Yield Monitor and Capital help the huge base ofaccount and produced an values. PropIndex gives an MagicBricks.com.index based on listing of excellent perspective of the consumersapartments and their property marketcapital and rental values on The PropIndex has been put performance in the quarter.the website. together through While listing and its meticulous research at theMagicbricks.com has over values/supply provide a locality level and through4 lakh active properties level of understanding into detailed discussions withposted by more than 1,00,000 the market, there are experts who have regularlyactive users in 300 cities and meticulous data checks to been offering market advice3,500 localities. Our users prevent aberrations and comments on variousinclude owners, brokers and creeping into the Index. forums in thebuilders. These are based on MagicBricks.com’s offline statistical calculations and and online initiatives.Methodology logical interpretations. The real estate markets in While listing and itsApartment values and India are dynamic and the values/supply provide alistings form the basis of PropIndex reflects those level of understanding intothe MagicBricks PropIndex. changes. Since it is derived the market, there areThese include multistorey from a dynamic database, meticulous data checks toapartments and single units there will be some additions prevent aberrationson plotted developments, and deletions of localities creeping into the Index.referred to as Builder Floors that happen as a function These are based onon MagicBricks.com. of market dynamics. These statistical calculations and will be reflected in futureThe Index is structured in logical interpretations. editions of the Index. Thesuch a way that Individual The National Property MagicBricks PropIndexproperties are aggregated Index (NPI) is indicative of will be released on ainto respective localities the extent of activity as well quarterly basis.which in turn are weighted
GLOSSARY & DEFINITIONSThere is a wealth of information within these pages. For better readability, we have presented somedata as tables and others as graphs. Between them, you will find how property markets haveperformed in the Apr-June quarter from many different perspectives – from a capital appreciationperspective, from a rental/yield realization perspective & from a supply of properties perspective.We recommend that you evaluate the city report in its entirety – that will provide a roundedperspective of the performance of the property market within each city Here are details of what .you will find in each of the city reports enclosed within-1. City Property Index – This is a composite index which is a function of supply of properties as well as the average capital appreciation/drop in various localities of the city in the quarter. The city index is the weighted average of the average rate per square feet in that locality & the supply of properties from that locality Premium localities (with higher average rate per square . feet) as well as localities with higher supply of properties will have a bigger impact on the Index. E.g. if the supply of properties from a premium locality drops, that locality will end up having a lower weightage in the index which in turn will push the Index downwards (and vice-versa). On the other hand, supply of properties remaining unchanged, the index will be influenced by capital appreciation within the locality .2. Price Monitor - This reflects the capital appreciation/drop within a locality It is calculated . basis a movement in the “average rate per square feet” within that locality . By and large, the movement in the “average rate per square feet” reflects capital appreciation/drops. However, in a few selected cases, we have observed that the average rate per square feet moves due to a change in mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher per square feet rate, changes over the quarter). In these few circumstances, the Price Monitor will in turn depict reflect this input. Such changes have been explained in the text of the City reports.3. Rent Monitor - This reflects the rental appreciation/drop within a locality It is calculated . basis a movement in the “average rent per square feet” within that locality. By and large, the movement in the “average rent per square feet” reflects rental appreciation/drops. However, in a few selected cases, we have observed that the average rent per square feet moves due to a change in mix of apartments within that locality (e.g. if the ratio of premium apartments, which command a higher per square feet rent, changes over the quarter). In these few circumstances, the Rent Monitor will in turn depict reflect this input. Such changes have been explained in the text of the City reports.4. Yield Meter – Yield is the annual rate of return earned on property Yield meter depicts the . gross yield percentages across the various localities. Gross yield is a ratio of average annual rental value to the average capital value of the property.5. Capital Value Tables (given in Annexures) - This shows the actual range of Prices within which properties were available in each locality Prices are shown in rupees per square feet . basis; these are the prevailing rates for properties in each locality.
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