Sale of residential properties in Pune down by 20.6% in the first half of 2021: Report
Sales of residential properties in Pune were down by nearly 20.6% year-on-year (Y-O-Y) in the first half of 2021 at 16,220 units. A total of 20,431 units were sold during January-June period 2020. Total new launches in the city during the January-June period of 2021 stood at 12,558 units, 26.3 per cent up over 9,944 units unveiled in the same period of 2020.
Launch of new residential properties in Pune has witnessed 26.3% growth year-on-year during the first half of 2021 despite the sales dropping by nearly a fifth in wake of the Covid-19 pandemic, showing optimism among developers, according to a report by online real estate brokerage firm PropTiger.com.
Total new launches in the city during the January-June period of 2021 stood at 12,558 units, 26.3 per cent up over 9,944 units unveiled in the same period of 2020.
On the other hand, sales of residential properties in Pune were down by nearly 20.6% year-on-year (Y-O-Y) in the first half of 2021 at 16,220 units. A total of 20,431 units were sold during January-June period 2020.
In its quarterly report Real Insight (Residential) – April-June 2021, PropTiger, reported that 2,810 units were launched in the second quarter, up 125 per cent from 1,251 units in the year-ago period.
"Our research and market analysis points towards an upward movement in demand in the real estate sector. Residential properties have become affordable as interest on home loans continues to rule low and prices quite stable over for many years now,” said Mani Rangarajan, Group COO, Proptiger.com.
The residential market of Pune had been one of the best-performing markets in the first three months of 2021.
However, like the adjoining Mumbai, here also the pace of recovery was hit by the second wave in the following quarter. Demand in Pune took the worst hit amongst the top-eight cities in the second quarter of 2021.
“Even if we keep the affordability factor aside, there is a growing urge among potential homebuyers to own a property as work-from-home culture is going to stay in the near future and COVID led to the importance of home ownership. All these factors and the fast recovery in the economic activities are aiding the growth of the residential segment," Rangarajan added.
The majority of the new supply in this quarter was concentrated in the peripheral localities of Mahalunge, Ravet, Dhayari and Yewalewadi. These micro-markets together accounted for 68 per cent of the total new launches.
In terms of configuration, 72 per cent of the units launched were of 2 BHK configuration, followed by 3 BHK, which had a share of nearly 19 percent. The developers focus on larger configurations comes on the back of shifting buyer preference as many organisations continue to work from home under the current scenario.
During the quarter, the top-eight cities witnessed new supply to the tune of 21,840 units, a 74 per cent rise from the completely washed-out April–June 2020. However, as compared to the preceding quarter, the new supply declined by 59 per cent.
On a half-yearly comparison, new launches in the top-eight cities increased significantly by 55 percent in the first half of 2021 as compared to the same period in 2020. Total number of new units launched during the first six months of 2021 stood at 74,876 units.
The total sales of the city stood at 2,495 units, a decline of 49 percent compared to the same period of the previous year. It was the highest decline recorded in the quarter among the top cities. On a quarterly basis, the decline was 82 per cent over the January-March period.
Still, Pune recorded the third-highest sales volume among the major cities, led by Mumbai and Delhi NCR. Like Mumbai, remission of stamp duty cuts, increasing infections, and lockdown had a significant bearing on-demand in Pune.
Nearly 53 per cent of the total sales were recorded in the projects priced below 45 lakh, followed by units in the price bracket of Rs 45–75 lakh with a share of 35 per cent. Only 12 percent of the sales were concentrated in more than Rs 75 lakh price bracket.
Peripheral localities of Ravet and Tathawade in the PCMC region and the IT hub of Hinjewadi in Pune South were the key micro markets that witnessed maximum demand during the April-June 2021 quarter.
The unsold inventory in Pune stood at 1,28,206 in June 2021 after registering a 5 per cent YoY decline. Pune holds the second-highest unsold inventory after Mumbai. Nearly 60 percent of this stock falls in the less than INR 45 lakh price bracket. Also, out of the total unsold stock, 20 per cent falls under the ready to move in category.
“There has been a pick-up in the demand as the second Covid wave subsided. Market reports and analysis suggest the coming months are going to be good for the real estate sector, provided we maintain at least the current pace of vaccination and India is saved from any other wave of the Covid pandemic," said Rangarajan.
