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Quarterly residential real estate analysis of top 8 cities in India

Pune Real Estate Report Apr-Jun 2021

1126 Jul 19, 2021 Download Report
  • The second wave of COVID-19, withdrawal of stamp duty waiver from April 1 onwards and the two-month lockdown till May end dampened the home buying sentiment in Pune in Q2 2021.
  • New launches declined by around 65 percent, QoQ, to 3,300 units. Shortage of construction workers and a 50 percent hike in raw materials costs impaired the new housing supply across budget categories.
  • Despite the market conundrum, property prices in Pune remained unchanged. Instead of reducing the home values, many developers rolled out payment flexibility plans.
  • Unsold inventory in Pune increased marginally from 87,000 units in Jan-Mar 2021 to 89,000 units in Apr-Jun 2021. The demand-supply disequilibrium contributed to the trend and the quarters required to dispose of this stock stand at 12.
  • Office leasing and outright investments in Pune declined by nearly 50 percent, QoQ. Grade A floor plates measuring 250 sq ft in Baner, Wakad and Pimpri were popular among investors with a Rs 45-50 lakh budget.

 

PUNE REALTY AT A GLANCE

Property Prices
Rental Rates
Demand
Supply
* Property prices represent quarterly change * Rental 'asks' represent yearly change

* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com

 

99ACRES' OUTLOOK

The second wave of COVID-19 dampened the home buying sentiment in Pune in Q2 2021. The withdrawal of stamp duty waiver from April 1 and the two-month lockdown till May-end also impacted residential enquiries and transactions dearly. While sales in the first two months dipped by 70-80 percent, June witnessed a marginal revival with the relaxation in curfew norms. Nevertheless, the QoQ transactions were still at a 70 percent low.

New launches declined by around 65 percent, QoQ, to 3,300 units. Shortage of construction workers, a 50 percent hike in raw material cost and delayed building permits due to the lockdown impaired the new housing supply in the city. Maximum additions were the phasewise launches by developers, such as Kolte Patil, Godrej Properties and Goel Ganga Developers. Struggling to sustain the manpower and overhead costs, Grade B and C builders stayed at bay.

Despite the market conundrum, property prices in Pune remained unchanged. Instead of reducing the home values, many developers rolled out flexible payment plans, such as a 100 percent refund on deal cancellation until a year and a 3-month down payment scheme. Many builders even negotiated with banks for early home loan disbursals for their customers.

Unsold inventory in Pune increased marginally from 87,000 units in Jan-Mar 2021 to 89,000 units in Apr-Jun 2021. The demand-supply disequilibrium contributed to the trend and the quarters required to dispose of this stock stand at 12.

 

Key micro-markets across budget segments

Key micromarketsAverage Capital 'Asks'Average Rental 'Asks'Rental Yield
Within Rs 40 lakhChakan2,900-3,600103.24%
Talegaon3,400-4,100102.89%
Rs 40 lakh - Rs 1 croreWagholi4,200-5,000123.03%
Undri4,500-5,500133.27%
Kiwale4,800-5,400132.00%
Rs 1 crore and aboveBaner6,600-7,800182.75%
Hadapsar5,700-6,600173.61%
Wakad5,900-6,900183.09%

* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments

 

 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
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