The reports stated that the Pune housing market evolved towards the mid and premium segments during this period.
As per Knight Frank’s data, roughly half of all housing sales in India between January and June this year were executed in Pune and Mumbai. Also driving sales were historically low interest rates offered by lenders for home loans, and strong hiring in IT and ITeS sectors. They also noted that housing prices contracted by around 2% over the past year. The first half of 2021 was also marked by a rise in unsold inventory — 18% over the same period in 2020 — with roughly seven quarters of inventory left to sell.
“The sales in the latest half-yearly period were driven largely by the stamp duty concessions in the first three months of 2021, reduction in home loan rates to an all-time low, demand for larger homes, better job prospects in the IT sector, increased savings, economic revival after the first wave, and price cuts and discounts offered by developers. Despite the closure of the stamp duty window and the second lockdown, homebuyers were active from April to June 2021, and as developers were willing to absorb the burden of increased stamp duty, it led to closure of transactions,” said Paramvir Singh Paul, Pune director of Knight Frank.
Overall, Knight Frank’s data shows that housing sales in the first half of 2021 grew by 74% over the corresponding period in 2020, considering that part of March and all of April-June 2020 were a washout because of strict lockdowns. Both Knight Frank and Gera noted that the market in Pune was growing in its eastern and western fringes.
Gera, in its Pune realty report, added that premium segment homes were taking in an increasing share of the housing pie, with increasing disposable income and low interest rates pushing the market towards branded and large realty projects. “We have seen the biggest gains in the Hinjewadi-Baner-Balewadi areas, and sales dropped the most in core city areas. Budget and value offerings dropped, as did luxury. However, the premium segment — Rs 5,000-6,000 per square foot — increased in sales, and the share of 3BHKs increased. Affordability has gotten better, and is currently at 2004 levels,” said Rohit Gera, managing director of Gera Developments.