- The homebuying sentiment in Pune improved in Jan-Mar 2021. Amid the reduced stamp duty rates, over 14,000 property registrations were recorded in the city in the studied period.
- The first quarter of the year 2021 saw the addition of over 9,500 residential units. Grade A builders accounted for the maximum share of fresh housing supply.
- The unsold inventory declined from 92,000 units in Oct-Dec 2020 to around 87,000 units in Jan-Mar 2021, and the quarters required to dispose of this stock stand at 12.
- The rental scenario, however, remained worrisome amid plummeting demand. Despite reduced rentals, the vacancy rate in the segment continued to grow, QoQ.
- The COVID-19 vaccine roll-out improved the office space leasing in Pune by 10-20 percent in Jan-Mar 2021 against the same period last year.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The homebuying sentiment in Pune improved in Jan-Mar 2021. Stamp duty rate at three percent until March 2021 against five percent till Auguest 2020, coupled with the lucrative home loan interest rates for first-time homebuyers, boosted residential demand across Maharashtra, including Pune. While enquiries were stable, the conversion rate witnessed a steep hike, QoQ. Resultantly, over 14,000 property registrations were recorded in Pune in Jan-Mar 2021. Of this, nearly 90 percent were new registrations, spilling over from the previous quarter.
The first quarter of the year 2021 recorded the addition of over 9,500 residential units. Grade A builders, such as Goel Ganga Developers, Kolte Patil Developers, Godrej Group and Shapoorji Pallonji Group, accounted for the maximum share of fresh housing supply.
Demand outpacing supply boded well for the unsold residential stock in Pune. From 92,000 units in Oct-Dec 2020, the inventory overhang declined to around 87,000 units in Jan-Mar 2021, and the quarters required to dispose of this stock stand at 12.
The rental scenario, however, remained worrisome amid plummeting demand. Despite reduced rentals, the vacancy rate in the segment continued to grow, QoQ, as many tenants terminated their rent agreements due to the rising COVID-19 cases. The prolonged work-from-home trend also marred rental sentiment across locales. And, the situation is unlikely to improve anytime soon amid the mass exodus of the migrant labours to their hometowns and the government taking stringent measures such as implementation of partial lockdown to curb the spread of COVID-19.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Chakan||2,900-3,600||10||3.24%|
|Rs 40 lakh - Rs 1 crore||Wagholi||3,900-4,900||12||3.03%|
|Rs 1 crore and above||Wakad||5,800-6,800||17||3.09%|
* 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