Navi Mumbai Property Index is a weighted price index for the city. It reflects price movement in a set of localities for each city which have been selected basis predefined criteria. This criteria takes into account the share of a locality in the consumer preference in the city as well as a minimum number of actively traded properties. Price movement in each of the selected localities is reflected in the Index movement basis the weight assigned to localities.
Navi Mumbai Property Index saw a rise in index values of 1%. The average was about 0.6%. The highest gain was in Thane which saw the City Index increase by 3% while other component of Mumbai Metropolitan Region (MMR) Mumbai also had a 1% increment and decline, respectively. The City indices of Pune and Ahmedabad on the other hand remained stagnant at the same level in Oct-Dec 15.
In line with general lack of activity in the residential real estate market, comparing the Navi Mumbai Property Index nationally, it has remained stagnant at the same level as last quarter. This is in continuation of the general trend of inactivity observed over in the market last many quarters (including current period between October-December 2015).
Regionally, north India comprising of Delhi, Noida/Greater Noida, Ghaziabad and Gurgaon saw an average drop of 1.9% in index values. Compared to this, Index in south Indian cities on average saw a 1.3% increment in the Index during last quarter. Kolkata in the east, saw a marginal increment of 1% in the Index value, as compared to last quarter.
CREDAI welcomed the budget announcement, which are bound to have an impact on the Navi Mumbai Property Index, on the supply front for private sector’s participation and housing for all by 100% income tax exemption on such houses besides the MAT 30 sq m in metros and 60 sq m in non-metros. This will encourage the private sector to reach these areas that accommodate about 90% of the shortage. On the enabling side to the home buyers, the increment of a deduction of Rs 50,000 on the home loan for a house of Rs 50 lakh is a big attraction. Moreover, there will be a net to net saving of 50,000 rupees a year for such home buyers. Considering there has been a 100% exemption of service tax on such houses as well.
CREDAI is certain that this will spur the Navi Mumbai Property Index and the market, and induce the home buyer. Best part is that there is a timeline fixed for delivery of such affordable houses. All we ask for now is speeding up of the approval process as the whole project needs to be delivered in a time frame of about 3 years. So a single window clearance system of course would be a big enabler.
For the Navi Mumbai property index, prices rose in 48% localities by 1.9%, pushing up the Jul-Sep 15 Index value by 0.8%. The balance 52% localities saw prices drop by 4.6%, pushing down the Jul-Sep 15 Index by 2.0% leading to a net drop of 1.2% in Oct-Dec 15. Whereas in Thane, 62% localities saw an average price rise of 4.6%, pushing up the Jul-Sep 15 Index value by 3.6%. Prices dropped in 38% localities by 4.1%, pushing down the Jul-Sep 15 Index by 0.4% and a net increment of 3.2% in Oct-Dec 15. In Mumbai, 52% localities saw an average price increase of 7%, pushing up the Jul-Sep 15 Index by 2.3%. Balance 48% localities saw prices drop by 4%, pushing down the Jul-Sep 15 Index by 1.6% leading to net increment of 0.7% in Oct-Dec 15