Real Insights: Real Estate Overview

Mira Road May-2015 A CommonFloor Report

Executive Summary Mira Road is a fast growing real estate hotspot in the Mumbai Metropolitan Region (MMR) in recent times. The suburb is situated just beyond Dahisar in the far northern part of Mumbai and is part of Mira Bhayandar. It is governed by the Mira Bhayandar Municipal Corporation (MBMC). The area emerged as a destination for affordable housing in Mumbai a few years ago. The area grew rapidly due to its great connectivity to prime suburbs of MMR and its affordable property prices, and emerged into a fully developed area. The area continues to witness growth even today, attracting several home buyers and tenants. The following report tries to identify the various factors that drive the real estate growth in Mira Road. Further, the report identifies the present real estate market scenario in terms of housing sale and rent, the key real estate trends, top builders and projects available, the civic issues, the opportunities available for area’s future growth, amongst others. To summarize, Mira Road is currently on a realty growth track. The area appears as one of the top destinations for affordable housing in Mumbai, despite its continuously growing property prices. As such, it continues to be popular among the middle income group for both purchase and rent. Considering the planned infrastructure initiatives and the increasing demand for housing, one can expect a considerable growth in the area’s real estate market in the near future.

Index Executive Summary ................................................................................................................................................................................. i Index ............................................................................................................................................................................................................. ii List of Figures ........................................................................................................................................................................................... iii List of Tables ............................................................................................................................................................................................ iii Introduction ............................................................................................................................................................................................... 1 Connectivity and Infrastructure .................................................................................................................................................. 1 Major landmarks ................................................................................................................................................................................. 2 Civic issues ............................................................................................................................................................................................ 2 Market Outlook ........................................................................................................................................................................................ 2 Residential launches from 2010-2014...................................................................................................................................... 3 Major builders and projects ........................................................................................................................................................... 3 BHK-wise and segmentation split in 2013-14 ....................................................................................................................... 4 Price trends ................................................................................................................................................................................................ 4 Weighted Average Price (WAP) ................................................................................................................................................... 4 Resale trends from 2013-2015 .................................................................................................................................................... 5 Housing rentals from 2014-2015................................................................................................................................................ 6 Rental yield ........................................................................................................................................................................................... 6 SWOT analysis .......................................................................................................................................................................................... 7 Key points ................................................................................................................................................................................................... 7

List of Figures Figure 1: Mira Bhayandar Location and Context ...................................................................................................................... 1 Figure 2: Residential launches in Mira Road, 2012 - 14 ........................................................................................................ 3 Figure 3: BHK wise availability in Mira Road ............................................................................................................................. 4 Figure 4: Classification of Housing segments ............................................................................................................................. 4 Figure 5: Weighted Average Prices in Mira Road, 2014 -15 ................................................................................................ 5 Figure 6: BHK Split for resale, 2014 – 15...................................................................................................................................... 5 Figure 7: Average resale prices in Mira Road, 2014 -15 ........................................................................................................ 5 Figure 8: Average rentals in Mira Road, 2014 - 15 ................................................................................................................... 6 Figure 9: Average rental yield in Mira Road, 2014 - 15 ......................................................................................................... 6

List of Tables Table 1: Important infrastructure projects in Mira Road ..................................................................................................... 2 Table 2: Major builders and projects in Mira Road .................................................................................................................. 3 Table 3: Average absolute rentals in Mira Road, 2014- 15................................................................................................... 6

Introduction

Figure 1: Mira Bhayandar Location and Context

(Source: Google Maps) Mira Road is one of the fastest growing real estate hotspots in Mumbai Metropolitan Region (MMR) in recent times. Situated in the far northern part of Mumbai just beyond Dahisar, the locality is part of Mira Bhayandar. It is governed by the Mira Bhayandar Municipal Corporation (MBMC). Various factors such as connectivity to some of the prime suburbs and business areas, growing infrastructure and relatively affordable prices in comparison to the expensive suburbs have been the key drivers of the area.

Connectivity and Infrastructure Mira road provides excellent connectivity to Mira Bhayandar as well as various other parts of MMR. The area has Western Express Highway (WEH), which is part of NH-8, passing through it. It is also connected to Ghodbunder Road in the east, thus providing connectivity to the western suburbs with the eastern suburbs, Thane and Navi Mumbai. Regular BEST buses are available in the area. Several MBMT (Mira Bhayandar Municipal Transport) and TMT (Thane Municipal Transport) buses too ply between the area and Thane. Apart from buses, one may find autos and taxis to commute in the area. Besides road, Mira Road is also accessible by rail as the western line of the Mumbai suburban railway passes through it. There is also an extension of the Mumbai metro from Dahisar proposed up to Mira Road. There are proposals for several other road projects. Mira road has a good civic and social infrastructure. Reliance Energy, Tata and Bombay Suburban Electric Supply (BSES) provide 24x7 electricity to the area while MTNL and other major telecom operators provide telecom services. The civic authorities are improving the drainage system here and have several civic infrastructure upgrades in pipeline. MMRDA has developed a skywalk near the Mira Road railway station, providing relief for the residents. The development authority has also widened existing roads. 1

Mira road already has a decent number of educational institutions and healthcare services including hospitals and nursing homes. There are entertainment facilities such as cinema halls and malls. The area has the Sanjay Gandhi National Park to its east. Besides good connectivity and social infrastructure, the area provides good connectivity to business hubs such as Bandra Kurla Complex (BKC), SEEPZ and Lower Parel via WEH. One may reach South Mumbai via the Bandra-Worli sea link. Some of the important infrastructure projects in the area as follows. Table 1: Important infrastructure projects in Mira Road

Current infrastructure WEH passes through it. Hence well connected to western suburbs. Also well connected to South Mumbai via WEH and Bandra-Worli Sea Link

Planned/Upcoming infrastructure Plans to extend Mumbai metro line 10 from Dahisar to Mira Road, up to Virar

Is connected to Ghodbunder Road, providing connectivity to western suburbs, eastern suburbs, Thane and Navi Mumbai Has BEST, TMT and MBMT buses. Auto-rickshaws and taxis also available

Proposed 4-laning of Gorai-Bhayandar Road and widening other roads. Plans of increasing water supply, upgrading the storm-water drain systems, establishing two new fire stations and slum rehabilitation

A new sewage treatment plant has already been set up The Mahim-Mira Road Fast Track Bus Corridor, which is part of the proposed MMR BRTS has already come up in the area

Major landmarks -

Sanjay Gandhi National Park Thakur Shopping Mall Maxus Mall Vardhman Fantasy Park Cinemax Rassaz Shopping Mall Orchid Ozone Mall

Civic issues Like any other area in Mumbai, Mira Road too faces some civic issues. Some of them are: -

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Off late, the Mira Road area has witnessed illegal encroachment on footpaths. Hence, pedestrians are forced to walk on roads. Some of the societies are facing irregular water supply and damage in water pipelines. There have also been reports of insufficient water supply. There have been complaints of bad road conditions near Hyderi Chowk and Kashigaon. The road work from Vimal Dairy is still pending creating problems to civilians. The road leading to Beverly Park too is known to be in bad condition. There have been issues related to improper garbage disposal.

Market Outlook Mira Road is one of the areas in MMR that emerged on the Mumbai real estate map owing to its affordability and good connectivity. The area was once a village governed by the gram panchayat. However, as land prices were going up in the prime suburbs, builders and developers slowly started moving to the outskirts with Mira Road being one of those areas. They started developing townships in an erstwhile village. With time, the infrastructure in the area started growing and ever since, has attracted 2

more builders into the area. With the area witnessing growth, Mira Road has become one of the hotspots for property investments and rentals. According to Mr Mariyam Malik of Zelfa Enterprises, “Mira Road is now completely developed. Areas such as Poonam garden, Ramdev Park, Beverly Park and areas close to Cinemax theatre are among the most sought after localities on Mira Road”.

Residential launches from 2010-2014 Mira Road has made its presence as a more affordable alternative to the most sought after western suburbs, in recent years. As such, it has witnessed significant real estate activity in terms of project launches. The following graph gives an idea about the trend of units launched since 2010.

Figure 2: Residential launches in Mira Road, 2012 - 14

(Source: Real Insights by CommonFloor) -

Figure 2 suggests that Mira Road has witnessed launch of several number of units in 2012. The period after that has witnessed fewer launches, owing to the overall slowdown in the real estate sector in the country. Most builders have focused on project completion and improving sales in the last two years than launching new projects. Nonetheless, the area still witnessed a total of over 11,000 new units available from 2012-2014. One may also see from figure 2 that Mira Road offers apartment projects of varying sizes, from as small as 50 units to as large as 1,000 units or more.

Mira Road has not yet witnessed any significant project launches during the first quarter of 2015.

Major builders and projects The following table gives some of the major builders in the area and their project in Mira Road details. Table 2: Major builders and projects in Mira Road

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Projects

Builders/Developers

Buddha Ozone 4 Darvesh Horizons Hubtown Iris Dhwani Height Annapurna Villa VV Amazon Valley

Buddha Enterprises Darvesh Group Hubtown Ltd Dhwani Properties Annapurna Realtors M/S V V Realty

Approx Total Units 208 430 77 68 16 500

BHK Availability

Project Status

Completion date

1BHK 1BHK 1BHK 2BHK 2BHK 1BHK

Ongoing Ongoing Ongoing Ongoing Complete Ongoing

Dec 2016 Dec 2016 Dec 2017 Dec 2015 Jun 2014 Mar 2017

BHK-wise and segmentation split in 2013-14 As per CommonFloor data, most of the available projects in the locality are apartments. Figure 3 shows the BHK-wise availability of apartments in the locality while figure 4 shows the price segments of the available projects.

Figure 3: BHK wise availability in Mira Road

Figure 4: Classification of Housing segments

Source: Real Insights by CommonFloor.com

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Source: Real Insights by CommonFloor.com

Figure 3 indicates that Mira Road offers almost 50 per cent of 1 and 2BHK apartments each, with only a small number of 3BHK apartments. This indicates that most of the units are focused towards small families and bachelors in the middle income group. From figure 4, it is also visible that most of the projects are available in the affordable and midsegment while very few projects are available in the luxury segment.

Price trends Weighted Average Price (WAP) The following graph shows the weighted average property price in Mira Road since the year 2013.

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Figure 5: Weighted Average Prices in Mira Road, 2014 -15 (Source: Real Insights by CommonFloor)

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Figure 5 suggests that the WAP in Mira Road is about 7,400 per sq. ft. This is much less compared to that of several other suburbs in Mumbai such as Andheri, Bandra and Powai. This is primarily because the area was developed much later than the aforementioned areas. The limited infrastructure too has led to lower property prices here. Apartments in Mira Road West are slightly expensive compared to those of Mira Road East, mainly due to better development and more amenities.

Resale trends from 2013-2015 Besides fresh project launches, Mira Road also offers residential units for resale. The following figures give an idea about the type of residential units available for resale and the property values of properties available for resale.

Figure 6: BHK Split for resale, 2014 – 15 (Source: Real Insights by CommonFloor.com) Figure 7: Average resale prices in Mira Road, 2014 -15 (Source: Real Insights by CommonFloor.com) -

Figure 6 suggests that most of the residential units available for resale are 1 and 2BHK units, followed by 3BHK units. Figure 7 shows the approximate property values of units available for resale. While figure 4 gives us the WAP of projects being launched, figure 6 gives a closer approximation of the present market value of properties in Mira Road. The approximate resale value in the area is about Rs 7,500 per sq. ft.

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Housing rentals from 2014-2015 Besides offering apartments for sale, Mira Road also offers a significant percentage of apartments for rent in Mira Road. This is because of affordable rental value and good connectivity to key business areas in Mumbai such as BKC and SEEPZ SEZ. The following table (table 3) and figure 8 show the approximate rentals in Mira Road. Table 3: Average absolute rentals in Mira Road, 2014- 15

BHK Type 1 2 3

Avg Rentals (Rs/month) 6,000-12,000 11,000-16,000 15,000-23,000

Figure 8: Average rentals in Mira Road, 2014 - 15 (Source: Real Insights by CommonFloor.com)

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From table 3 and figure 8, it may be seen that the rental prices in Mira Road are far less than that of other expensive western suburbs such as Andheri and Bandra. The average monthly rent per sq. ft. in Mira Road is about Rs 17 whereas the rental prices in the suburbs such as Andheri and Bandra are in the range of Rs 30-90 per sq. ft.

Rental yield The following graph (fig 9) gives the rental yield trend since 2014.

Figure 9: Average rental yield in Mira Road, 2014 - 15

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(Source: Real Insights by CommonFloor.com)

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Figure 9 indicates a decent rental yield of almost 3 per cent. On an average, one may say that the rental yield of about 3-4 per cent is good in the country. This is mainly due to the low property prices, low rentals and a good demand for rental properties in the suburb by the lower income groups.

Hence, if you plan to invest in property in the area from the point of renting it out, Mira Road proves a good area to invest.

SWOT analysis The following table gives the SWOT analysis of Mira Road. Strengths Has very good connectivity to various parts of MMR including Mumbai, Thane and Navi Mumbai due to major highways Offers affordable housing with a price range of up to Rs 40 lakh Has a well-developed infrastructure Opportunities

Weakness

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The area faces several civic issues such as drinking water problem, illegal encroachment on several roads and improper garbage disposal

Threats

A proposal is made to extend the Dahisar metro line up to Mira Road, which will improve connectivity. A slew of infrastructure upgrades are planned to improve the area around Mira Road

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Though well connected, the distance from key business areas and the delay in road/rail projects may prove a threat for the area’s growth

Key points The following key points are obtained from the report -

Mira Road has emerged as one of the affordable housing destinations in Mumbai in recent years owing to the skyrocketing property prices in the prime suburbs such as Andheri, Powai and Bandra.

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Great connectivity to rest of Mumbai, Thane and Navi Mumbai, coupled with affordable property prices have been the major drivers of growth in the area.

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Mira Road has a completely developed civic and social infrastructure, and the infrastructure continues to grow.

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The area faces certain civic issues such as bad roads, illegal encroachments and improper garbage disposal.

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Mira Road has witnessed significant project launches in the last five years. The highest number of project launches was in 2012 after which, project launches have slowed down. This is because of the economic slump over the last couple of years and the decision by builders/developers to focus more on project completion and clearing inventory.

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One may find a significant number of 1 and 2BHK apartments in the area. A few 3BHK apartments too may be found in the area. 7

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About 48 per cent of the available units in the area are in the affordable budget range (up to Rs 60 lakh) and about 48 per cent are in the mid-segment (Rs 60 lakh – 1.2 crore). Only the remaining apartments are in the luxury segment (Rs 1.2 – 2 crore).

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The WAP of new projects in the area is about Rs 7,400 per sq. ft.

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Though Mira Road is a relatively new entrant on the real estate map of Mumbai, it still offers properties for resale. Most of the properties available for resale are 1 and 2BHK apartments. A few 3BHK units too are available for resale.

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The market value of property, indicated more accurately by the resale value, is approximately Rs 7,500 per sq. ft.

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Mira Road also caters to people looking for rental accommodation in the area. The approximate rental price in the area is about Rs 17 per sq. ft. The average rental yield in the area is about 3 per cent, which is a decent value for home owners.

CommonFloor.com, Bangalore maxHeap Technologies Pvt Ltd Tower B, 4th Floor, Diamond District, #150, Old Airport Road, Kodihalli, Bangalore – 560 008 Authors Karthik Kashyap Senior Research Associate [email protected] Bangalore

Shankhadeep Chaudhuri Senior Research Associate shankhadeep.chaudhuri@commonfloor. com Bangalore

Priyanka Kapoor Sr. Research Analyst [email protected] om Bangalore

Meha Singla Associate Director -Domain Research (Real Estate) [email protected] Bangalore

Disclaimer: The document above is written by the Domain Research Team at Commonfloor.com, India’s fastest growing real estate website known for its unbiased prognosis in Real Estate sector. The information provided in this report is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps. It should be considered as a guideline and not in absolute certainty. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is confidential and the sole property of CommonFloor.com. It should not be reproduced in any form, in part or whole, without prior permission.

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