There has been a marked increase in the number of new apartments launched on a year-on-year basis in Pune.

June ’17 - Dec ’17 saw an increase in inventory of 24,792 apartments while in June ’18 - Dec ’18 saw 40,885 new apartments being added to the Pune market.

15% rise in sales

Sales have also risen by 15 per cent on a year on year basis. June ’17 - Dec ’17 saw 36,086 apartments sold in the primary market while June ’18 - Dec ’18 saw 41,562 apartments sold, according to the Gera Pune Residential Realty Report released on Tuesday.

The Gera Pune Residential Realty Report is a bi-annual initiative by Gera Developments that is aimed at garnering insights on both the supply and demand sides of the residential realty market in Pune.

According to the report, while it is typical for an improvement in demand to translate into a price rise, rates per square foot (psf) continued on the downward trend. The focus towards affordable housing which has now gathered pace is what is bringing down the average per square foot price.

There has been a further reduction of 2.21 per cent in average rates per square foot in the last six months and average rates across, the city is now at ₹4,582 psf.

This is the 6th consecutive half yearly price reduction – three years of downward trend in average rates psf.

The push towards affordable housing gathered momentum and Pune saw an increase in new launches driven by this segment.

New launches in the budget segment were up by 16 per cent in 2018 compared to 2017 and were up by 21% in the value segment. Together, both these segments (budget and value) constituted 69% of the total new launches.

‘Green shoots visible’

Rohit Gera, Managing Director, Gera Developments, said, “After a prolonged down cycle, it seems there are finally green shoots visible in Pune’s real estate market. Even though this is good news at a city level, the recent NBFC default scare on the back of the ILFS debacle is yet to unravel at an industry level and hence the best way to describe our current outlook is one of wait and watch with cautious optimism.

Nevertheless, the increase in fresh supply in the affordable segment is a big positive, as more home buyers enter the organized segment they will create a strong foundation for upgrades in the future and thereby creating demand over the long run.”

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