TOP 10 CITIES IN THE INDIAN REAL ESTATE MARKET

PROPEQUITY

Creating Investor Intelligence

TOP 10 CITIES
IN THE

INDIAN REAL ESTATE MARKET

[MAY 2015]

10 CITIES
IN THE
REAL ESTATE MARKET
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10 Cities
in the Indian
RealINDIAN
Estate Market

FOREWORD

[MAY 2015]

Samir Jasuja
Founder and Managing Director, P E Analytics Pvt Ltd.

This year, only 2 major economies have been given

positive outlook by all major rating and multilateral
agencies. Besides the United States, India has made it to
the platform, despite downgrades witnessed throughout
last year.
India stands at the crossroads, and is on the path of
achieving growth rate in the range of 7% to 10%,
surpassing that of China in this year itself.
India has already achieved the medium-term objective of
six per cent Consumer Price Index (CPI)-based inflation
(January 2016 target, as set by RBI), and industry is
looking optimistically at 2015-17 period. Government on
its part is attempting to rejuvenate the economic
machinery with easing of bureaucratic red-tape, FDI in
infrastructure, real estate, and defense. Even though there
is high level of gross NPAs in the banking system, and
consumer spending has shown only partial signs of
recovery, the economic platform will hopefully find steady
ground
The market tidings look positive with oil and commodity
prices coming down significantly. Indias major exports
market like USA is witnessing positive growth and job
opportunities.
Consequently ,with tumbling oil prices suppressing the
current account deficit, the Modi Government is looking
to spend heavily on infrastructure, including the creation
of 100 smart cities.
The real estate sector, which saw significant slowdown in
supply and absorption in the last four quarters, is
desperately seeking a revival in the coming one to two
years.
In this backdrop, PropEquity evaluated the fourteen top
cities of India, and ranked them. As the Indian economy
shows signs of recovery, these are the cities, which have
shown maximum resilience to the present market
challenges on account of strong fundamentals, and will
lead the way for real estate growth of India, going
forward.

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CITY SELECTION
The selection of the cities is done on a national and
regional level.

REGION

NORTH REGION

WEST REGION

CITY
GURGAON
GHAZIABAD
NOIDA
GREATER NOIDA
FARIDABAD
PUNE
AHMEDABAD
THANE
NAVI MUMBAI
MUMBAI
HYDERABAD

SOUTH REGION

CHENNAI
BENGALURU

EAST REGION

KOLKATA

All the constituent cities of the Mumbai Metropolitan

Region along with Ahmedabad and Pune constitute the
West region. Five cities from NCR (exception being Delhi
city, which accounts for insignificant and sporadic supply)
have been selected for our analysis. Other cities, which
have been included are the top three cities from the
South, and Kolkata from Indias East.

[MAY 2015]

10 CITIES
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METEMPSYCHOSIS MUSINGS
Six years ago in August 2009, we published the first edition
of the top 10 cities report in India.

Ten key parameters have been taken into account to generate

the rankings, including the price, supply, absorption,
inventory, and new launch trends. We have also looked at
execution delays and the size of the market in value terms.
With the benefit of hindsight, we have compared where each
city stood then, to how they are positioned now.
Mumbai, which ranked 1st five years ago, has now slipped to
the 8th position, while Bengaluru, which did not even figure in
the first five cities, has climbed to the top.

Overall, the city which have fallen the most in rankings is

Noida (from 4th to 11th) and Mumbai (from 1st to 8th), while
the cities which climbed the most is Hyderabad (from 10th to
4th).
In terms of regions, the southern region, which ranked 3rd out
of the four regions, has overtaken the northern region in
regional rankings while it has become 1st at the city level.
All NCR cities occupy the bottom rankings, depicting the
weakness in the region.

[MAY 2015]

RANK

2009

RANK

2015

MUMBAI

BENGALURU

PUNE

PUNE

THANE

CHENNAI

NOIDA

HYDERABAD

CHENNAI

AHMEDABAD

BENGALURU

THANE

GURGAON

KOLKATA

AHMEDABAD

MUMBAI

KOLKATA

NAVI MUMBAI

10

HYDERABAD

10

GURGAON

11

GHAZIABAD

11

NOIDA

12

NAVI MUMBAI

12

GHAZIABAD

13

GREATER NOIDA

13

GREATER NOIDA

14

FARIDABAD

14

FARIDABAD

GAINERS

LOSERS

STUDY APPROACH
The study is divided into two parts, the first being the ranking of the cities
on various individual base indicators. The second part of the study deals
with composite rankings, calculated through the study of advanced
indicators. These composite rankings lead to the Attractiveness Index for
the top cities.
The base indicators used in the report are listed below
1. Projects Launched

5. Total Unsold Stock

2. Projects Offered Possession

6. Launch price increase

3. Units launched

7. Inventory overhang

4. Units absorbed

8. Size of market

ATTRACTIVENESS INDEX

POSITIVE
INDICATORS

PropEquity, as Indias number one provider of real estate data, analytics,

and consulting, has been tracking over 16,000 developers, and 65,000
projects in 40 cities across India. Based on our experience, we at
PropEquity have used some advanced indicators, which define the health
of any real estate market, to find the most bankable cities of India. Such
advanced indicators are listed below:
1. Size of the market ( used as base)
2. Increase In Size Of Market
3. Possession /Launch Ratio (Project Launched In 2009-2011)
4. Absorption To Supply Ratio (Unit Based)
5. CAGR of Absorption (2013 2014)
6. Absorption In New Launches
7. Increase In Absorption Prices
NEGATIVE
INDICATORS

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STUDY BRIEF

8. Total Unsold Inventory To Yearly Absorption Ratio

9. Average Delay In Project Execution (Months)
10. Construction Committed To Construction Completed

Note: 1)Scope of the study includes Apartments, Independent Floors, and

Villas only, and does not take into account Plotted developments. The
study only looks at the residential supply in the organized domain, and
does not include housing schemes by government bodies.

[MAY 2015]

2) The scope of time utilized for this study is 2 years (January2013 to

December 2014), except for calculation of delays, where 4 year period is
taken, and project completion trend, where 2009-2011 period launched
projects are considered

600

(AVERAGE NUMBERS FOR JAN 2013 - DEC 2014)

500
400
300
200
100

Bengaluru witnessed the highest average number

of project launches in the 2013 - 2014 period
with almost 500 projects, followed by Pune.
Bengaluru alone accounted for 20% of the total
projects launched in Indias top 14 cities in 2014.
All three cities from the Mumbai Metropolitan
region figure in the top six, led by Thane.
The five cities of NCR, surprisingly, were the
bottom five of the 14 cities, in terms of new
launches.

[MAY 2015]

All the southern cities were in the top seven.

VII

VIII

IX

GREATER NOIDA

VI

AHMEDABAD

KOLKATA

IV

HYDERABAD

MUMBAI

III

NAVI MUMBAI

II

CHENNAI

THANE

PUNE

BENGALURU

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RANKING PROJECTS LAUNCHED

450

(YEARLY AVERAGE NUMBERS FOR JAN 2013 - DEC 2014)

400
350
300
250
200
150

100
50

PUNE

CHENNAI

AHMEDABAD

HYDERABAD

THANE

NAVI MUMBAI

MUMBAI

KOLKATA

GURGAON

BENGALURU

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RANKING PROJECTS OFFERED POSSESSION

II

III

IV

VI

VII

VIII

IX

Not

surprisingly,

Bengaluru,

owing

to

its

professionalism, and being an end user market,

lead in project completion, witnessing more than
500 projects getting completed in 2014, a
whopping 50% rise over 2013 numbers.
Pune, standing neck to neck with Bengaluru, has
also shown significant commitment to end users in
terms of delivery.
None of the cities from the MMR figure in the top
five.

[MAY 2015]

Not surprisingly, the five cities of NCR region were

again at the bottom of the barrel. Chennai was the
only city, which saw a decline in projects getting
completed in 2014, as compared to 2013.

80

(000 UNITS FOR JAN 2013 - DEC 2014)

70
60
50
40
30
20
10

PUNE

THANE

GREATER NOIDA

NAVI MUMBAI

CHENNAI

MUMBAI

AHMEDABAD

GHAZIABAD

KOLKATA

BENGALURU

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RANKING RESIDENTIAL SUPPLY

II

III

IV

VI

VII

VIII

IX

Bengaluru witnessed the highest average unit

launches in 2013 - 2014 period, with more than
70 thousand units getting launched.
Historically, the NCR, the MMR, and the southern
region have witnessed equal number of unit
launches. This has changed drastically this year,
wherein the south has led with 40% of the new
supply, out of the three regions.
New Supply in key cities fell considerably over the
last two years, falling the least in the southern

[MAY 2015]

region (36%), and the most in MMR (50%).

Noida was the only city, witnessing an increase in
its supply (10%), while Thane fell the most (60%)

70

(000 UNITS FOR JAN 2013 - DEC 2014)

60
50

40
30
20
10

PUNE

THANE

GREATER NOIDA

AHMEDABAD

CHENNAI

NAVI MUMBAI

HYDERABAD

MUMBAI

KOLKATA

BENGALURU

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RANKING RESIDENTIAL ABSORPTION

II

III

IV

VI

VII

VIII

IX

Although absorption fell across Pan India, Bengaluru,

Pune

and

Thane

have

shown

slightly

better

absorption levels compared to other cities

The South region witnessed much better absorptions
compared to NCR & MMR w.r.t. to new launch
absorptions. Last year south absorbed almost 50%
of the total units launched.
All 14 cities saw decline in absorption over last year.
In line with the trend in new launches, the south
maintained the lead with least drop in the number of

[MAY 2015]

units absorbed (17%), compared to 23% for MMR,

and a massive 53% for the NCR.

120

(000 units till December 2014)

100
80
60
40
20

PUNE

NAVI MUMBAI

MUMBAI

CHENNAI

AHMEDABAD

II

III

IV

VI

VII

VIII

The western region alone accounts for more than 45%

of the total 7.6 lac of unsold stock in the 14 cities.
MMR (215,203 units), NCR (188,751 units), and
Bengaluru (100,406 units) together account for more
than two third of unsold inventory of the top 14 cities.
NCRs inventory swelled by 14%, owing to increases
in

inventories

in

Noida,

Greater

Noida,

and

Ghaziabad, while that of MMR and Southern region

shrunk marginally.
Ahmedabad,

Thane,

and

Hyderabad

showed

maximum resilience, with more than 10% decline in

[MAY 2015]

their inventories from last year, while Kolkatas

inventory swelled by 24% to 37,426 units

HYDERABAD

GREATER NOIDA

GHAZIABAD

BENGALURU

THANE

Thousands

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RANKING UNSOLD STOCK

IX

18%

(FOR JAN 2013 - DEC 2014)

16%
14%
12%
10%
8%

6%
4%
2%

IV

Despite a significant slowdown in real estate sector

across India over the last two years, the new
launch prices have continued to rise unabated,
ranging from 5% to 16%, on a compounded
annualized price rise (CAPR), over a 4 year period.
The maximum increase was witnessed in Gurgaon,
with a CAPR of 16%, followed by Thane at 14%,
and Pune and Mumbai at 12% each.
Mumbai continues to be the most expensive city
with weighted average price of INR 16,000 psf,

[MAY 2015]

followed by Gurgaon at INR 6,700 psf, a distant

2nd.

VI

VII

VIII

IX

AHMEDABAD

NAVI MUMBAI

GHAZIABAD

GREATER NOIDA

BENGALURU

III

FARIDABAD

II

MUMBAI

PUNE

THANE

0%

GURGAON

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RANKING LAUNCH PRICE INCREASE

70

(IN MONTHS FOR JAN 2013 - DEC 2014, basis absorption over an year)

60
50
40
30
20
10

GREATER NOIDA

NOIDA

MUMBAI

GHAZIABAD

NAVI MUMBAI

GURGAON

THANE

KOLKATA

HYDERABAD

FARIDABAD

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RANKING INVENTORY OVERHANG (IN MONTHS)

II

III

IV

VI

VII

VIII

IX

Of the major cities of India, Faridabad was hit the

most in terms of sales velocity, and thus has the
highest two year average inventory overhang of
more than 65 months

Not surprisingly, all the five cities of NCR had

inventory overhang of more than 50 months at the
start of this year.
Bengaluru had the lowest overhang at the start of

[MAY 2015]

this year, at 22 months, followed by Pune at 24,

and Ahmedabad at 25 months.

400

(INR Bn FOR JAN 2013 - DEC 2014)

350
300
250
200
150
100
50

II

III

IV

VI

VII

VIII

Bengaluru, leading with INR 360 Billion of primary

yearly sales, is the only city that witnessed an
increase in its market size (4%) from last year.
Mumbai, falling 13%, follows closely with INR 340
Billion worth of sales.
The other INR 100 Billion markets left in India are
Pune (INR 216 Bn), Gurgaon (INR 165 Bn), Thane
(INR 163 Bn), Chennai (INR130 Bn), G. Noida
(INR 106 Bn), and Hyderabad (INR 100 Bn).
The market size of NCR fell by a whopping 58%
(down to INR 264 Billion from INR 552 Billion),

[MAY 2015]

followed by a 12% fall in MMR. South was the only

resilient market, falling by a mere 2%

Note: Size of the market is defined as the value of total apartments sold annually by all the developers in a particular city.

IX

AHMEDABAD

NOIDA

HYDERABAD

GREATER NOIDA

CHENNAI

THANE

GURGAON

PUNE

MUMBAI

BENGALURU

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RANKING SIZE OF MARKET

TOP 10 CITIES IN THE INDIAN REAL ESTATE MARKET

PROPEQUITY
Creating Investor Intelligence

TOP 10 CITIES

ATTRACTIVENESS INDEX

[MAY 2015]

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ATTRACTIVENESS INDEX
STUDY OF ADVANCED INDICATORS
This chapter deals with study and analysis of the
advanced indicators that drive the cities real
estate potential. While some of the indicators
represent the current situation of the sector,
others provide a glimpse into the future.
Note: All the analysis is done in number of units, unless specified otherwise

FOLLOWING IS A LIST OF INDICATORS WE HAVE USED IN THE ANALYSIS:

SIZE OF MARKET

POSSESSION /LAUNCH RATIO (PROJECT

LAUNCHED IN 2009-2011)

ABSORPTION TO SUPPLY RATIO (UNIT BASED)

CAGR OF ABSORPTION (2013 2014)

Used as a base indicator to eliminate the base effect problems

Indicates possession track record for and if market is oversupplied

Indicates absorption to new launch trend for past 2 years

Indicates changes in absorption numbers in the last two years

ABSORPTION IN NEW LAUNCHES

Indicates absorption trend for newly launched projects

INCREASE IN ABSORPTION PRICES

Indicates changes in absorption prices in the last two years

[MAY 2015]

INCREASE IN SIZE OF MARKET

Indicates if the market is growing or shrinking in value terms

TOTAL UNSOLD INVENTORY TO AVG YEARLY

ABSORPTION RATIO

Indicates how big is the unsold inventory in different markets

AVERAGE DELAY IN PROJECT EXECUTION

(MONTHS)

COMMITTED TO COMPLETED RATIO FOR

CONSTRUCTION

Indicates by how many months units got delayed, which offered

possession in the last 4 years
Indicates the expected future construction as compared to past
performance

NO OF UNITS/PROJECTS
OFFERED
POSSESSION
INCREASE
IN SIZE OF MARKET
(In %ge, FOR JAN 2013 - DEC 2014)

I
20%

+ve

4%

0%
-20%

-47%

-40%
-60%
-80%

FARIDABAD

GURGAON

GREATER NOIDA

GHAZIABAD

NOIDA

AHMEDABAD

NAVI MUMBAI

HYDERABAD

CHENNAI

MUMBAI

THANE

KOLKATA

PUNE

BENGALURU

-100%

The first advanced indicator for measuring the health Bengaluru and Pune, saw significant increase in their
of the real estate sector is the change in the size of share in Indias top 14 cities, while the share of NCR
the market.
went down (from 28% in 2012 to 16% in 2014)
While markets in NCR and MMR were the traditional Bengaluru is the only city out of the top 14, which
frontrunners before 2011, other prominent markets witnessed an increase in its market size from last
emerged, and dethroned the previous leaders.
year.

NO OF UNITS/PROJECTS
OFFERED (for
POSSESSION
PERCENTAGE
COMPLETED PROJECTS
2009-2011 LAUNCHES)

II
100%

+ve

93%

80%
60%
26%

40%
20%

GREATER NOIDA

NOIDA

GURGAON

FARIDABAD

GHAZIABAD

MUMBAI

THANE

KOLKATA

BENGALURU

PUNE

NAVI MUMBAI

CHENNAI

HYDERABAD

0%

AHMEDABAD

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ATTRACTIVENESS INDEX

[MAY 2015]

Of the total 7,300 projects launched in 14 cities Ahmedabad leads the rankings with 93%
between 2009 to 2011 period, 2,100 i.e. around completions, followed by Hyderabad (84%), Chennai
30% of the total projects, are still under construction. (82%), and Navi Mumbai (81%).
All five cities of NCR have been the worst performers, All cities from the southern region had more than
with less than 50% of the projects still under 75% completion rate, making this region the most
construction, essentially taking more than twice the reliable destination in terms of project delivery.
committed time.

NO
OF UNITS/PROJECTS
POSSESSION
ABSORPTION
TO SUPPLYOFFERED
RATIO (UNIT
BASED)

III
130%
120%
110%
100%
90%
80%
70%
60%
50%
40%

+ve

120%

GHAZIABAD

FARIDABAD

GREATER
NOIDA

MUMBAI

KOLKATA

NAVI MUMBAI

GURGAON

BENGALURU

PUNE

NOIDA

THANE

HYDERABAD

CHENNAI

AHMEDABAD

76%

The third advanced indicator is the ratio of the sales compared to units launched.
number of units absorbed to the number of units
launched, and indicates the sales conversion in the NCR was the worst performer where four out of five
cities had less than 80% absorption to supply ratio,
market.
leading to a higher inventory build-up in the coming
The graph above displays the absorption to supply years
ratio calculated from Jan 2013 to Dec 2014 for the
South region was the best performer overall, with all
top 14 cities in India.
its cities having more than 80% absorption to supply
Ahmedabad, Chennai, and Hyderabad lead the ratio.
chart, being the only cities witnessing more residential

NO OF
UNITS/PROJECTS
OFFERED
CAGR
OF ABSORPTION
(2013 POSSESSION
2014)

IV

+ve

[MAY 2015]

Bengaluru was the best performer, even though its

sales fell by 7% in 2014, compared to 2013. Over
the last four years, Bengaluru is the only city which
had a positive growth in its absorption numbers.

FARIDABAD

GHAZIABAD

GREATER NOIDA

GURGAON

NOIDA

NAVI MUMBAI

HYDERABAD

CHENNAI

KOLKATA

THANE

PUNE

We constantly look at the changes in the absorption

rates of various asset classes in real estate to gauge
the sectors performance. What is clearly visible as a
trend is that all of the top 14 cities in India have seen
negative growth in absorption over the last year.

AHMEDABAD

-32%

-7%

MUMBAI

0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
-80%
-90%

BENGALURU

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ATTRACTIVENESS INDEX

Mumbai and Pune witnessed their sales declining by

15%. All the cities in the NCR fared much below par,
with sales falling between 40% to 80%
South was again the best region, with its cities
restricting the decline in sales by less than 30%.

NO OF UNITS/PROJECTS
OFFERED
POSSESSION
ABSORPTION
PRICE INCREASE
(for 2013
2014)

V
12%

10%

8%

+ve

5%

4%
0%
-4%

GURGAON

AHMEDABAD

NOIDA

GREATER NOIDA

FARIDABAD

NAVI MUMBAI

MUMBAI

CHENNAI

HYDERABAD

PUNE

GHAZIABAD

THANE

BENGALURU

KOLKATA

-8%

Increase in average price of units absorbed is a key All three cities from the South performed well, with
indicator that depicts if the market can absorb units average absorption prices increasing by more than
at higher prices.
6%.
Kolkata and Bengaluru stand out with price of Although, absorption has declined visibly in the MMR
absorbed units increasing by 10% in the selected region, the prices continue to rise unabated. This is
period
not a healthy sign and is one of the primary reasons
for MMR region losing its sheen.
Of the top 14 cities, three cities have shown negative
price growth, with two of them being from NCR.

NO OF
UNITS/PROJECTS
OFFERED
POSSESSION
AVERAGE
ABSORPTION
IN NEW
LAUNCHES
(PERCENTAGE)

VI
34%

+ve

33%

32%

29%

30%
28%
26%
24%
22%

MUMBAI

NAVI MUMBAI

KOLKATA

FARIDABAD

NOIDA

GREATER
NOIDA

GHAZIABAD

AHMEDABAD

THANE

GURGAON

PUNE

HYDERABAD

BENGALURU

20%

CHENNAI

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ATTRACTIVENESS INDEX

[MAY 2015]

The health of the real estate market has a direct with one third of the supply launched in 2013- 2014
correlation to how quickly the newly launched supply period, getting absorbed in the same year.
is absorbed in the market.
Amongst West markets, Pune and Thane are also
Following that concept, we have calculated the 2013 doing well with the absorption standing at greater
- 2014 average absorption of units in the year of than 30%, overtaking Mumbai, whose new launch
their launches.
absorption average has dropped to 24%.
All three key south cities namely Bengaluru, Chennai,
and Hyderabad have a visible lead in the market,

OF UNITS/PROJECTS
POSSESSIONRATIO
TOTALNO
UNSOLD
INVENTORY TOOFFERED
YEARLY ABSORPTION

VII
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
-

-ve

9.4

To have a holistic understanding of the current

unsold stock present in the market, we look at the
unsold stock as a multiple of the past years
absorption figure. The lower the inventory multiple,
the better is the citys performance.
NCR, as a majorly investor driven market, has seen
its inventory overhang levels reach unprecedented
highs of over 50 months.

Bengaluru and Pune are the best performers with

inventory ratios of less than 2 years.
Southern region has shown the best performance with
three cities coming within the bottom five of the
rankings.

NO OF UNITS/PROJECTS
OFFERED
POSSESSION
AVERAGE
DELAY IN PROJECT
EXECUTION
(MONTHS)

VIII
40

BENGALURU

PUNE

AHMEDABAD

CHENNAI

HYDERABAD

THANE

KOLKATA

MUMBAI

NAVI MUMBAI

GURGAON

NOIDA

GHAZIABAD

FARIDABAD

GREATER
NOIDA

3.1

-ve

37

35
30
25

18

20
15
10

[MAY 2015]

One of the oldest indicators in the sector is the

comparison of the average delay in months for
projects that got significantly delayed. We calculated
the average delay in months for all the projects that
were slated to be delivered in the 2011 to 2014
period.
Greater Noida leads with 37 months of average
delay in projects during the review period.

Ahmedabad

Chennai

Bengaluru

Hyderabad

Pune

Navi Mumbai

Kolkata

Thane

Ghaziabad

Mumbai

Noida

Gurgaon

Faridabad

Greater Noida

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ATTRACTIVENESS INDEX

All NCR markets have more than 23 months of

average delays, while markets in MMR witnessed
average delays between 18 to 24 months.
South region was again the best performer with
average delays between 14 to 16 months only.

NO OF UNITS/PROJECTS
OFFERED
COMMITTED
TO COMPLETED RATIO
FORPOSSESSION
CONSTRUCTION

IX

-ve

12.0
10.0

10.5

8.0
6.0
4.0

2.2

2.0

AHMEDABAD

FARIDABAD

HYDERABAD

CHENNAI

PUNE

KOLKATA

NAVI MUMBAI

THANE

BENGALURU

MUMBAI

GHAZIABAD

GURGAON

NOIDA

GREATER
NOIDA

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

ATTRACTIVENESS INDEX

Humungous supply expected to come in the next two Southern region, with future commitments of less than
years is a major concern for some of the markets, 2.5 times the past deliveries, has a much higher
which had below par delivery records.
probability of delivering to its commitments.
To effectively look at the committed delivery for the Pune is also favorably placed with a ratio of less than
future, we calculate the ratio of the committed 2, which it should be able to achieve with less
delivery of units in 2015-2016 period, to the actual difficulties.
delivery of projects in 2013-2014 period.
Ahmedabad leads in this category, being the only city
NCR stands out with four out of its 5 cities taking the in top 14 cities of India, which has lesser committed
top positions, and having future annual commitments average future deliveries compared to its past
of more than 3 times of what was delivered in the performance.
past.

[MAY 2015]

TOP 10 CITIES IN THE INDIAN REAL ESTATE MARKET

CALCULATION METHODOLOGY
Most of the variables that we have used
in our analysis are in different units and
formats, making them incomparable.
To make sense of such diverse set of
data,

we

have

used

ranking

technique, which normalizes a set of

data points and puts them on an equal
footing.
The

variables

are

segregated

into

positive and negative, based on their

effect on the residential real estate
sector.

While

positive

variables

are

given rankings of 14-1 (fourteen being

best), the negative variables are given

rankings of 1-14.

The resultant ranked variable are then

subjectively given weights based on
PropEquitys

experience

of

these

variables and their impact on the sector.

The weighted scores are thus calculated,
to arrive at cumulative scores for each of

[MAY 2015]

the cities. The city with the highest

cumulative score is ranked the highest

ABSORPTION IN NEW
LAUNCHES

POSITIVE

INCREASE IN ABSORPTION
PRICES

POSITIVE

INCREASE IN SIZE OF MARKET

NEGATIVE

TOTAL UNSOLD INVENTORY

TO YEARLY ABSORPTION RATIO

KOLKATA

THANE

NEGATIVE

AVERAGE DELAY IN PROJECT

EXECUTION (MONTHS)

FARIDABAD

GURGAON

NOIDA

MUMBAI

GHAZIABAD

THANE

KOLKATA

NAVI MUMBAI

PUNE

HYDERABAD

BENGALURU

CHENNAI

AHMEDABAD

NEGATIVE

CONSTRUCTION COMMITTED
TO CONSTRUCTION
COMPLETED

NOIDA

GURGAON

GHAZIABAD

MUMBAI

BENGALURU

THANE

NAVI MUMBAI

KOLKATA

PUNE

CHENNAI

HYDERABAD

FARIDABAD

AHMEDABAD

FARIDABAD

GURGAON

AHMEDABAD

MUMBAI

FARIDABAD

GHAZIABAD

NAVI MUMBAI

GHAZIABAD

FARIDABAD

GHAZIABAD
FARIDABAD

G. NOIDA

KOLKATA

NAVI MUMBAI

NOIDA

GURGAON

FARIDABAD

AHMEDABAD

NOIDA

13

BENGALURU

GURGAON

G. NOIDA

MUMBAI

GHAZIABAD

MUMBAI

12

PUNE

G. NOIDA
NOIDA

G. NOIDA

GURGAON

KOLKATA

NAVI MUMBAI

G. NOIDA
HYDERABAD

CHENNAI

11

KOLKATA

FARIDABAD

G. NOIDA

GHAZIABAD

NOIDA

NAVI MUMBAI

THANE

KOLKATA

BENGALURU

THANE

10

AHMEDABAD

CHENNAI

NOIDA

FARIDABAD

NOIDA

G. NOIDA

GURGAON

BENGALURU

PUNE

PUNE

HYDERABAD

NAVI MUMBAI

AHMEDABAD

HYDERABAD

CHENNAI

NOIDA

GURGAON

NAVI MUMBAI

AHMEDABAD

GHAZIABAD

AHMEDABAD

THANE

KOLKATA

THANE

MUMBAI

CHENNAI

HYDERABAD

GURGAON

THANE

PUNE

CHENNAI

MUMBAI

NAVI MUMBAI

HYDERABAD

CHENNAI

NAVI MUMBAI

PUNE

PUNE

HYDERABAD

HYDERABAD

MUMBAI

MUMBAI

GHAZIABAD

PUNE

CHENNAI

GURGAON

THANE

HYDERABAD

MUMBAI

NOIDA

THANE

BENGALURU

KOLKATA

BENGALURU

GHAZIABAD

PUNE

POSITIVE

G. NOIDA

CAGR OF ABSORPTION (2013

2014)
BENGALURU

POSITIVE

AHMEDABAD

ABSORPTION TO SUPPLY RATIO

(UNIT BASED)
AHMEDABAD

POSITIVE

BENGALURU

POSSESSION /LAUNCH RATIO

(PROJECT LAUNCHED IN 20092011)

CHENNAI

POSITIVE

KOLKATA

SIZE OF MARKET

BENGALURU

POSITIVE

FARIDABAD

RANK

G. NOIDA

[MAY 2015]
EFFECT

G. NOIDA

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market
ADVANCED INDICATORS RANKINGS
CITY SCORE
14

TOTAL

10.0%

100%

THANE

20132016

10.0%

PUNE

CONSTRUCTION COMMITTED
TO CONSTRUCTION
COMPLETED

20112014

10.0%

NOIDA

[MAY 2015]

-ve

AVERAGE DELAY IN PROJECT

EXECUTION (MONTHS)

2014

NAVI MUMBAI

-ve

TOTAL UNSOLD INVENTORY TO

YEARLY ABSORPTION RATIO

10.0%

MUMBAI

-ve

INCREASE IN SIZE OF MARKET

20132014

7.5%

KOLKATA

+ve

20132014

10.0%

HYDERABAD

+ve

INCREASE IN ABSORPTION
PRICES

20132014

10.0%

GURGAON

+ve

ABSORPTION IN NEW
LAUNCHES

20132014

10.0%

G.NOIDA

+ve

CAGR OF ABSORPTION (2013

2014)

20132014

7.5%

GHAZIABAD

+ve

ABSORPTION TO SUPPLY RATIO

(UNIT BASED)

20092011

FARIDABAD

+ve

POSSESSION /LAUNCH RATIO

(PROJECT LAUNCHED IN 20092011)

CHENNAI

15.0%

BENGALURU

WEIGHTAGE

20132014

AHMEDABAD

TIMEFRAME FOR
CALCULATIONS

+ve

SIZE OF MARKET

PARAMETERS

ADVANCED
INDICATOR

CITY SCORE
EFFECT

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

CALCULATION METHODOLOGY

Rank

14

11

13

12

10

Weightage

0.75

2.10

1.35

0.15

0.30

1.20

1.65

1.05

0.45

1.95

0.60

0.90

1.80

1.50

Rank

14

12

13

11

10

Weightage

1.05

0.68

0.90

0.30

0.38

0.08

0.23

0.98

0.60

0.45

0.83

0.15

0.75

0.53

Rank

14

13

12

10

11

Weightage

1.40

0.80

1.30

0.20

0.10

0.30

0.70

1.20

0.50

0.40

0.60

1.00

0.90

1.10

Rank

14

10

13

12

11

Weightage

0.70

1.40

0.90

0.10

0.20

0.30

0.40

0.80

1.00

1.30

0.60

0.50

1.20

1.10

Rank

13

14

10

12

11

Weightage

0.80

1.30

1.40

0.40

0.70

0.60

1.00

1.20

0.30

0.10

0.20

0.50

1.10

0.90

Rank

13

11

14

10

12

Weightage

0.15

0.98

0.60

0.38

0.83

0.30

0.08

0.68

1.05

0.53

0.45

0.23

0.75

0.90

Rank

14

12

10

13

11

Weightage

0.60

1.40

0.90

0.10

0.40

0.30

0.20

0.80

1.20

1.00

0.70

0.50

1.30

1.10

Rank

12

14

11

10

13

Weightage

1.4

1.1

0.1

0.3

0.2

0.5

1.0

0.8

0.7

0.6

0.4

1.3

0.9

Rank

14

12

13

11

10

Weightage

1.40

1.20

1.30

0.20

0.60

0.10

0.30

1.10

0.80

0.50

0.90

0.40

1.00

0.70

Rank

14

11

13

12

10

Weightage

1.40

0.60

1.10

1.30

0.40

0.10

0.30

1.20

0.90

0.50

0.80

0.20

1.00

0.70

9.5

11.9 10.9 3.2 4.2 3.5 5.4 10.0 7.6 7.4 6.3 4.8 11.1 9.4

XI

XII

XIII

NOIDA

GHAZIABAD

GREATER NOIDA

XIV

FARIDABAD

IX

GURGAON

VIII

NAVI MUMBAI

VII

MUMBAI

VI

KOLKATA

THANE

IV

AHMEDABAD

III

HYDERABAD

II

CHENNAI

PUNE

CITY RANKINGS

BENGALURU

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

FINAL CITY & REGION RANKINGS

REGIONAL RANKINGS
REGION

SOUTH
REGION

WEST
REGION

EAST
REGION

[MAY 2015]

NORTH
REGION

REGION
WEIGHTED SCORE
TOTAL
TOTAL REGION
CONSIDERING SIZE
REGION
RANKING
SCORE
OF CITY
(cumulative) SCORE/CITY

CITY

WEIGHTED
SCORE

SIZE OF
MARKET

BENGALURU

11.9

361

2.21

CHENNAI

10.9

130

0.73

HYDERABAD

10.0

100

0.52

MUMBAI

7.4

341

1.31

PUNE

11.1

216

1.24

THANE

9.4

163

0.79

AHMEDABAD

9.5

79

0.39

NAVI MUMBAI

6.3

72

0.23

KOLKATA

7.6

65

0.25

GURGAON

5.4

165

0.46

GHAZIABAD

4.2

48

0.10

NOIDA

4.8

84

0.21

GREATER NOIDA

3.5

106

0.19

FARIDABAD

3.2

0.01

REGION
RANKING
(PER CITY)

3.46

1.15

3.96

0.79

0.25

0.25

0.97

0.19

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

REPORT SUMMARY
The latest report by PropEquity on Indias top cities clearly puts the Southern region of India at the top
as three out of the top four cities are Bangalore (#1), Chennai (#3) & Hyderabad (#4). These cities
have topped over 50% of the parameters evaluated in the research. Bangalore has emerged as the
best city amongst the top 14 cities in India and has also ranked number 1 on 4 out of the 10
parameters evaluated ( i.e. size of the market, CAGR of absorption and total unsold inventory to

yearly absorption ratio). Pune has come a close second and has been solely responsible for helping
the western region to gain the second spot. As anticipated, the NCR region has failed to make its mark
on any of the parameters evaluated and thus, nosedived to the bottom the regional as well as city
rankings.

Given below are some of the key factors that had an impact on the performance of each region :

South India
Realty prices have remained at realistic levels and appreciated moderately in the weak market.
It is has primarily been an end-user market so did not get adversely affected when investors started
to withdraw from the market in the last couple of years.
Developers are not over extended as they have launched smaller projects and are well capitalized.
The land prices in the south are also much lower than the northern & western markets.

Many of the real estate projects in the Southern Region are sold post construction or when they are
about to be completed, which leads to increased homebuyers confidence. Developers are also not
heavily dependent on cash flows from sales to fund the projects and manage their finances more
efficiently.

[MAY 2015]

South Indian region has evolved as the IT hub of India since last decade and continuous increase in
demand of IT space during last few years has maintained the end user driven demand in these

cities.

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

REPORT SUMMARY
West India
Real estate sector in West India has been deeply impacted by the sluggish Indian economy.
The extremely slow process of getting various approvals by the government bodies has also added
to the challenges of the MMR real estate market.
Developers in the region are also in struggling as their balance sheets are over extended and debt
is piling up with significant interest payouts every year without any significant cash inflows.
Land in MMR is most expensive in India and that leads to any project that is launched to be priced
extremely high compared to any other city in India.
The commercial real estate market has really been the laggard in the MMR region with no uptake
whatsoever in the last few quarters.
The end users are sitting on the sidelines waiting for further price correction before they make their
final buying decision

North India
NCR has performed the worst of all the regions as it performed below par in all the key parameters
that affect the real estate scenario in India today.
Northern real estate developers have been deeply impacted by the slowing economy and have
taken the major brunt of the impact.
The primary reason why NCR has suffered the most is because there has been a flight of investors

and over 50% of the sales in NCR have been investor driven since last 5-7 years owing to the
exponential returns the market gave between 2009 2012.
Cities such as Gurgaon and Greater Noida have witnessed unprecedented sales in residential asset
class but the related infrastructure development has not materialized as per expectations. Due to
this the social infrastructure has also not caught up making these areas inhabitable. Key example of

[MAY 2015]

these micro markets being Dwarka Expressway, New Gurgaon Region, Yamuna Expressway &
Noida Extension.

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

REPORT SUMMARY
Developers have over extended themselves by launching huge townships and large sized projects,
which were difficult to execute and required significant funding. With paucity on bank lending on
these projects, the construction pace slowed down to alarming levels.
Prices in these regions went up very quickly making it out of reach of many end-user buyers.
Demand and supply was mismatched in the NCR region as whopping over 1.5 lakh units were

launched just in 2011-2012.

East India
Eastern region has maintained its third position in the regional ranking
Kolkata is at 7th position in the city rankings.
The market size of Kolkata increased in terms of percentage & absorption of units previously

launched was reasonably healthy.

Absorption levels of projects that have been launched recently is witnessing a slowdown thereby
showing that the eastern region is also not insulated during the current slowdown.

[MAY 2015]

10 CITIES
IN THE
REAL ESTATE MARKET
TopTOP
10 Cities
in the Indian
RealINDIAN
Estate Market

CONTACT:
VAISHALI PAWAH
Hand phone: +91 9810111697, +91 124 4522735
Email: [email protected]

OFFICE:

348, Udyog Vihar, Phase II, Gurgaon, Haryana

Website: www.propequity.in

[MAY 2015]

Mumbai | Hyderabad | Navi Mumbai | Greater Noida | Pune | Bangalore | Gurgaon

Thane | Noida | Chennai | Ahmedabad | Kolkata | Faridabad | Ghaziabad