Real Estate in Pune – An Ever Evolving Market (Q2 CY 22)
Pune’s realty market is on an optimum path of recovery after the hit of the pandemic, and the recent global economic disruption. 2022 is being hailed as a lucrative year for the city, and the overall residential sales are expected to surpass those of the last 5 years. This boost in sales velocity can materialize only if property prices are aligned with the demands and buying capacity of consumers.
The sales trends maintained a consistent pace across Q1 and Q2 of CY 2022:
- 23, 857 unit sales in Q1
- 22, 741 unit sales in Q2
The sales for this year are expected to exceed an all-time high of 1 lac+ units.
Residential real estate witnessed a boost in Q1 and Q2 combined of 2022, in terms of both inventory and sales. Developers made more inventory available in the market, which increased by 106% from Q1 and Q2 combined of 2021. The residential sales too increased by 20-25% Y-o-Y, with an expected split between resale and new properties.
Residential Sales Trends of Q2 CY 2022
The sales metrics collated from Q2 of CY 2022 convey a trend of purchasing sentiments which are favorable towards specific localities, configurations and prices.
1 . Zone-Wise Trends
The Top Selling Zone:
West Pune emerged as the highest-selling geographical zone in Q2 2022. The preferences leaned heavily towards 2BHKs for mid-segment pricing, particularly within the price range of Rs. 60-65 lacs.
Within the entire west zone, there are differences in the preferred price segments and carpet area for properties within different micro-markets.
The top-selling micro-markets for West Pune were:
West Pune attracts a lot of young homebuyers who are keen on starting a family and desire an upgrade from 1BHK units to spacious 2BHK units in micro markets like Wakad, Tathawade, Punawale. The zone is also attracting families who want to upgrade from a 2 BHK to a 3 BHK in micro-markets like Balewadi and Baner. Due to its proximity to Mumbai-Pune expressway, the zone is highly preferred by investors, home buyers from Mumbai and migrants from other cities. It has the perfect opportunity for such homebuyers to thrive in, as it offers good employment, connectivity, safety and lifestyle amenities. This strong base of infrastructure in the west makes it highly appealing for residential settlements.
The Next-Best Selling Zone:
East Pune was the next best-selling zone, wherein 2BHK and 1BHK units witnessed the most real estate sales. The most-preferred pricing in this zone was in the affordable segment.
East Pune had demand for affordable as well as premium properties, differentiated by the particular micro-markets.
The top-selling micro-markets of the East were:
East Pune offers homebuyers a comfortable lifestyle with rich infrastructure, amenities and a safe neighborhood. Most of the homebuyers in this zone upgrade from suburban areas, seeking a better lifestyle. For them, 1 & 2BHK’s are the perfect type of property to invest in. The appeal of East Pune lies in the fact that it was the origin of Pune’s industrial and IT evolution, and also houses the offices of leading MNC’s like Barclays, HCL etc.
2. Primary and Secondary Sales Trends
Secondary sales account for 10-12% of the total sales in the city.
This trend is influenced by homebuyers who are looking to move in immediately, and who opt for resale properties over new launches. Furthermore, investors who were waiting for the market to open to cash out their real estate investment have also finally succeeded, which has also caused an increase in secondary sales.
Post the economic headwinds in the country, increase in repo rates and home loan interest, people are trying to reduce the risks associated with their home buying and are moving towards safer options.
Homebuyers today are well-informed and have very clear preferences. The current homebuyer sentiment is leaning heavily towards properties for self-use, which is largely due to the uncertainty caused by the pandemic.
The demand and sales data complement each other, displaying a rise in both these parameters for homebuyers:
- The demand in Q2 CY 22 increased by 8.1% QoQ compared to the increase of 3.1% QoQ of Q1
- This rise in demand for residential real estate can be attributed to the stabilizing economy, hybrid working model and buying capacity of homebuyers
- The unsold inventory declined 13% Y-o-Y
Post-Pandemic Homebuyer Trends
The pandemic played a significant role in the evolution of homebuyer sentiments, and the following crucial trends have been witnessed in this year as compared to the pre-pandemic year of 2019:
- Factors such as early possession, larger carpet areas, and the preference for amenities have increased
- 43% of people have shown an inclination to move to the suburbs
- A preference for 3BHK’s witnessed among 18% of homebuyers
The maximum sales are driven by people between the ages of 25-65, and from industries like IT and manufacturing. The comfort of using technology among today’s homebuyers has enhanced the internet searches for homes, which are currently 1.7 Lac+.
1 . Locality Preferences
Preference for specific localities generally stems from the following factors:
- Proximity to workspaces
- Connectivity with social infrastructure
As per statistics, homebuyers in Pune prefer to have amenities like schools, hospitals and shopping complexes not more than 10 min from their homes. After the penetration of hybrid working module, people are willing to live at a distance from their workspace as long as their travel time is not higher.
With regards to the safety that they offer, localities like Wakad, Baner & Balewadi from the West and Kharadi, Hadapsar & Mundhwa from East are preferred. These localities also offer the convenience of being well-connected to workspaces, schools and shopping complexes.
2 . Configuration Preferences
Each configuration has seen higher demand in specific micro-markets:
- 1BHK is preferred in localities like Manjari and Kiwale
- 2BHK has greater demand in prime markets like Wakad and Wagholi
- 3BHK was concentrated in areas of Baner and Balewadi
A trend that has come forth upon a Q-o-Q comparison is there is greater demand for spacious homes in the mid and premium segment.
Pune as a whole is experiencing booming infrastructural growth, but the Western and Eastern zones have raced ahead in terms of development.
It is a bridge connecting Pune with Mumbai. It is infrastructurally rich, with a range of employment opportunities and lifestyle amenities. It has become a symbol of a cosmopolitan lifestyle, housing several trending social and cultural hotspots. A major advantage is also the employment opportunities offered here, due to proximity to businesses parks and IT hubs such as Pune IT Park.
- Balewadi, Hinjewadi, Baner have a wide variety of restaurants like Balewadi High Street.
- Popular retail and shopping complexes such as the Westend Mall and Xion Mall, and large-scale infrastructure like Phoenix Marketcity is under development.
- Seamless road network, availability of public transport and connectivity with rail and air transport.
- Leading hospitals like Jupiter and Manipal, and educational institutes like Orchid School and Symbiosis University are located in the West.
The existing and developing infrastructure base of West Pune has made it a thriving locality, and appealing for real estate investors.
It is a major residential hotspot, due to its infrastructural offerings:
- Koregaon Park and Kalyani Nagar are among the most popular areas for restaurants and pubs in Pune, catering to a wide range of the public.
- Attractive retail and shopping complexes, such as Amanora Park Town add to the aspirational value of this zone.
- A good network of highway and road connectivity, and close proximity to Pune airport
- Booming IT and Industrial employment hub, due to developments like Weikefield IT Park, Magarpatta Cyber City etc.
- A rich infrastructure of schools like ST. Bishop’s and St. Joseph’s, hospitals such as the Command Hospital and Jahangir, as well as gardens and gymnasiums.
All these elements have been responsible for East Pune becoming a flourishing hub for real estate.
Sustainability in Real Estate
The real estate industry has made a conscious switch towards adopting environmentally friendly construction materials, mechanisms and energy solutions. India has seen an increase of 31% across Pune and 5 other cities this year in the number of green real estate assets.
Sustainability has become the need of the hour, fueled by the increasing consumer sentiment that is demanding it. To align with these demands, properties that are resource-conservative are being developed, with elements like:
- EV charging stations
- Smart facades, which are designed to lower energy consumption
- Use of environmentally safe materials
A parameter to measure the sustainability of constructions is the ESG (Environment, Social, Governance) compliance. As of now, Pune has a share of 15% in the overall sum of ESG certified constructions in the country. While this is a gradual growth, the widespread consumer demand for green buildings is a driving factor for more and more constructions to align with the idea of sustainability.
Sustainability & UDCPR
Owing to the increase in awareness regarding it, sustainability has also been incorporated in the Unified Development Control and Promotion Regulations (UDCPR) 2020, wherein systems for constructions have been enumerated:
- Solar assisted water heating
- Rain water harvesting
- Waste-water and solid waste management
What Does 2023 Hold for Pune Real Estate?
2022 brought Pune’s real estate market on a path of holistic growth. This upward trajectory is expected to continue, and scale greater heights in the upcoming year. The predictions of 2023 for Pune, among other cities of India, are extremely positive for the sector of residential real estate.
In the span of 2023-2024, the following milestones are expected to be achieved by Pune realty:
- A contribution of 15% to the total sales
- A contribution of 18% to the new launches
- An increase of 6% in property prices, backed by the high demand
Consumer sentiment inclined towards nearing possession and ready inventory. Consumers have become more conscious of their buying pattern which makes it crucial to understand the sentiment, preference and behavior to create and market trends before any launch.
Thank you. Your comment will be visible after an approval.
Comments (0)No comments found.