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MUMBAI
An apartment, admeasuring approximately 1,780 sq ft, was leased out at Planet Godrej in Mahalaxmi at a monthly rental of Rs 1.5 lakh. This flat is located in Central Mumbai and the rental values of mid-ranged apartments in this location fall in the range of Rs 1.25–2.75 lakh per month. The aforementioned property, therefore, is within the expected range. Central Mumbai, much like other locations in the city, had seen a drop in demand, resulting in correction in values in the first half of 2009. However, over the past quarter, stability has been witnessed in both rental and capital values. The location is expected to remain stable in the short to medium term, as demand seems to be inching back for rental apartments.
CHENNAI
An independent house in Besant Nagar, admeasuring 3,800 sq ft, was leased out at an approximate rental value of Rs 75,000 per month. This is a high-end residential unit, which is located in South Chennai, including R.A. Puram, Boat Club Adyar and so on. Another apartment, admeasuring 2,285 sq ft, was leased out at Santhome in South Chennai at a monthly rental value of Rs 85,000. The average rental values in this location are between Rs 75,000 and Rs 2,25,000 per month. Thus, the rental values of both the residential units fall within the expected range. The location has seen steady rental values over the last quarter and has witnessed a rise of approximately 25% in values over the previous years, largely due to existing as well as new demand. The rental values in this location are expected to remain steady in the short term on account of restricted supply and buoyant demand.
HYDERABAD
Sale transaction of a villa, admeasuring 2,200 sq ft, was recorded in Kapra, Hyderabad. The villa is situated in a high-end gated community (villa project) called Saket Mithila. The cost of the villa was around Rs 70 lakh (approximately Rs 3,182 per sq ft). The project was launched in 2006 with a total of 100 villas in a land parcel of 11 acres. The capital values in this location would range between Rs 2,500-3,000 per sq ft and this sale, therefore, is within the prevalent range. Kapra is located in the North Eastern part of Hyderabad and is a new location being explored by residential developers. The demand that is being seen is largely for villas from the indigenous business community, retirement homes or second homes end users.
RESIDENTIAL MARKET
The pan-India residential demand is estimated to be over 7.5 million units by 2013 across all categories, including the economically weaker sections; affordable; mid and luxury segments. The demand for top seven cities is estimated to be 4.5 million units by 2013. Of the total expected demand across India, 43% is likely to be generated in tier-I cities, i.e., Bangalore, Mumbai and NCR. Mumbai is likely to witness the highest cumulative demand of 1.6 million units by 2013 due to various development projects and increasing urbanisation. Hyderabad and Bangalore are likely to have the highest CAGR of 14% in the next five years. The affordable and mid-segment category, likely to constitute 85% of the total residential demand, will be the primary focus of most developers.
Source: Cushman & Wakefield, a real estate consultancy firm, offers research and advisory services in property-related matters
Courtesy:- ET dt:- 18/12/2009
