Real Estate

Pune’s real estate market in consolidation mode: Report

Our Bureau Pune | Updated on January 07, 2020 Published on January 07, 2020

Inventory for sale has also risen after falling since June 2017

The Gera Pune Residential Realty Report for July-December 2019 released today stated that the realty market in Pune is in consolidation mode.

In 2017, it took 40 projects with the highest sales-per-project to cumulatively sell 10,000 homes. By 2019, that number has dropped to 17 projects. Developers with a track record are getting rewarded with sales driven by high consumer demand, the report said.

The share in sales of the Top 20 Developers has gotten stronger especially post-RERA. The offtake is at a four-year high (94,383 units), an increase of 15 per cent over the last 12 months.

Affordability Index shows highest affordability compared to the last eight years. Trends in affordability over time indicate that affordability is at an all-time high as on December 2019.

According to the report, inventory for sale has also risen after falling since June 2017 indicating supply outstripping demand.

“ This suggests that the market has accelerated in the last six months in terms of construction activity. From a peak inventory at 107,402 apartments in June 2016 it has dropped to 89,887 apartments now. Inventory available for sale grew by about12 per cent as well over June 2019 (when it was 80,062 units). However, inventory levels are down by 16 per cent from 2016 peak” the report added.

Since the implementation of RERA, the number of live projects in Pune has reduced from 3,733 projects in June 2017 to 3,490 in December 2019. The total number of projects on hold (where work has commenced and presently stopped) has reached 249. These account for 40,023 apartments and based on our prior data, 23,466 apartments are sold. This means approximately about 24,000 families are stuck with incomplete projects.

Published on January 07, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.