MMR's Dombivli ranks 1st on the list of top 10 most active Indian residential micro-markets, based on the number of new units launched during 2019. ANAROCK research reveals that this micro-market saw more than 7,130 new units launched in 2019, with average property prices hovering around INR 6,597 per sq. ft. (built-up area). The activity levels in the top 10 micro-markets are based on both demand and supply.
Panvel in Navi Mumbai ranks 2nd with nearly 5,900 new units added to this market at an average price of INR 6,170 per sq. ft. NCR's New Gurgaon was close behind in the 3rd spot with new launches touching nearly 5,400 units. Although New Gurgaon saw a generous supply, it was the only micro-market of the top 10 active residential hotspots where average property prices declined by 6% between 2016 and 2019. Average property rates here were INR 6,460 per sq. ft. in 2016 and fell to nearly INR 6,087 per sq. ft. in 2019.
MMR's Badlapur and Pune's Mahalunge ranked 4th and 5th. Located in close proximity to Mumbai in Thane district, Badlapur attracts increasing interest from both end-users and investors. Affordable prices and good connectivity to key areas in MMR have boosted its real estate prospects. In 2019, Badlapur saw new launch supply of nearly 5,350 units - with the lowest average property prices among the top 10 markets at INR 3,770 per sq. ft. Mahalunge in Pune saw approx. 4,650 new units launched during the year with average prices at INR 5,657 per sq. ft.
Interestingly, no micro-markets in Chennai and Kolkata feature in the top 10 list of most active residential hotspots. Developers in all top cities are now extremely selective with their choice of locations and focus on markets with high demand within specific budget categories.
Property Sizes - North & South Markets Outsize the West
Further analysis of the top 10 most active micro-markets reveals that new launch supply in the western cities of MMR and Pune was notably of smaller-sized units. For instance, the average property size in these cities' micro-markets was as low as 500 sq. ft. (Badlapur) while the maximum went up to 685 sq. ft. (Hinjewadi).
The average size of properties launched in Hyderabad's Kondapur was almost triple at 1,630 sq. ft. Similarly, average property sizes of units launched in Bangalore's Sarjapur Road and Electronic City were 1,305 sq. ft. and 1,140 sq. ft. respectively. NCR's New Gurgaon and Sohna also saw newly launched units with average sizes of 1,532 sq. ft. and 1,233 sq. ft. respectively.
Price Rises - Bangalore's Electronic City Tops Out
In a period of three years, the average property prices in the top 10 most active micro-markets also increased. Bangalore's Electronic City saw average prices increase by 11% in 2019 as compared to 2016. The current average price in this locality is INR 4,365 per sq. ft. Given the overall slowdown post the triple tsunami of DeMo, RERA, GST since 2016-end onwards, this price rise is remarkable.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.