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Pune Real Estate: Under Rs 50 Lakh Flats Account For 70% Demand; 500-800 Sq Ft Size Tops

Despite strong headwinds, 2022 recorded robust sales momentum, witnessing over 1.39 lakh property sales registrations in Pune district, said a new report.

Knight Frank India, in its latest assessment noted that Pune district saw property sale registration of 12,166 units in January 2023, contributing over Rs 441 crores to the state revenues.

Primary (from builder) and secondary (resale) residential deals accounted for 73% of properties registered in January 2023.

500-800 sq ft of apartment area emerged as the preferred product size while Rs 25-50 lakh as the preferred ticket size by homebuyers for residential properties in Pune district.

The report added that the total property value transacted stood at Rs 85,246 crore leading the state exchequer to collect Rs 4,843 crore in revenue from stamp duty and registration fees.

A shift in consumer sentiment towards home ownership has emerged as a key driver for continued property purchases while selectively conceding on other factors like area, location, grade of developer etc..

The market’s resilience is also demonstrated through the continued home purchases despite a rise in stamp duty rates of 1% on account of the metro cess.

2023 has continued the strong momentum with January 2023 recording property registrations over 12,000 units, a 34% YoY rise, the report added.

The property value transacted also records a 42% YoY rise leading to Rs 7,736 crore worth of properties transacted in January 2023 as compared to Rs 5,444 crore worth properties transacted in January 2022.

Government revenue collection also recorded substantial growth recording a 64% YoY jump in January 2023 on account of rise in stamp duty and property prices amongst other factors.

However sequential moderation in sales was recorded in January 2023, with property registrations recording a 9% MoM drop.

Residential properties hold a major share of property transactions in January 2023, 73% of property registered are residential deals.

Shishir Baijal, chairman and managing director, Knight Frank India said, “Pune residential market is primarily driven by end users and in the wake of recent headwinds, the market has shown great resilience towards home purchase. Despite consecutive repo rate hikes, implementation of metro cess, and devoid of any government incentive, home purchases continue to remain buoyant even while we do note a sequential decline this month. Supportive affordability, strong employment prospects and improving infrastructure should keep the home buyers interested in the city.”

Central Pune accounts to 80% of the transactions in January 2023

Central Pune covering Haveli Taluka, Pune Municipal corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) holding the largest share of residential transactions recorded a YoY jump in share for January from 79% in January 2022 to 80% in January 2023. West Pune that accounts for 12% of transactions in January 2023 holds the second biggest share covering areas like Mawal, Mulshi, Velhe. North, South and East hold a smaller share of residential transactions accounting to 8% in January 2023.

500-800 sqft carpet area dominates residential demand in January 2023

Housing demand for apartments with an area of 500-800 sq ft accounts for almost half the property transactions in January 2023. The share fell from 50% in January 2022 to 48% in January 2023. Under 500 sq ft homes account for 27% of transactions in January 2023 making it the second most preferred apartment size. Share of over 800 sqft apartment area increased from 22% in January 2022 to 25% in January 2023

In January 2023, Central and west Pune had a demand and market for a wide variety of apartment area options for homebuyers, with apartments under 800 sq ft dominating demand. The market for over 2000 sq ft carpet area is only present in central and west Pune. Demand for apartments in North Pune is majorly concentrated below 800 sq ft.

Under Rs 50 lakh apartments account for 70% of demand in January 2023.

Apartments having a value of Rs 25- 50 lakhs dominated housing demand in January 2023 accounting to 38% of transactions, the share has dropped from 41% in January 2022. Rs 50 lakhs – Rs 1 crore accounted for 33% of market share in January 2023 making it second preferred ticket size, the demand share has risen by four percentage points from 29% in January 2022.

Young homebuyers in Pune: 55% of homebuyers fall in 35- 40 years age group

Buyers in the age group of 30-45 years category had a share of 55%. Home buyers under 30 accounted for 23% share in Pune. While home buyers falling in the age group of 45- 60 years accounted for 17% of market share.

66% homebuyers are from within Pune

More than half the home buyers are located within the Pune region accounting for 66% of the demand. Homebuyers from neighboring regions like Aurangabad account for 14% of the market demand. Mumbai and Navi Mumbai region account for 7% of the market demand. Demand from Nagpur and Goa region also recorded accounting to 6% and 5% of the demand in January 2023.

The share of demand from outside Maharashtra is limited to 1% in January 2023. Central Pune and West Pune remain the preferred market for all home buyers. North Pune also records some demand from home buyers in Goa, Pune and Mumbai.

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