The real estate landscape is exhibiting signs of revival, particularly within the luxury housing segment, as apparent in Pune, where sales figures have shown a notable uptick. The sluggish market trend that has adversely impacted real estate activities across the nation seems to be less pronounced in this property sector.
Sale of Luxury Housing regains pace in Pune.
According to recent reports from real estate experts, Pune's real estate market has experienced a consistent rise in luxury housing sales, which stand out when compared to other regions in India. A significant finding from the data shared with Times of India by Cushman & Wakefield India indicates that almost 50% of luxury housing units are being introduced in Bangalore, while Pune contributes a modest 8%.
Shveta Jain, the executive director of Cushman & Wakefield India, highlighted that despite the overarching sluggishness in the real estate sector, there remains a strong demand for luxury housing. This demand can be attributed largely to a growing demographic of high net worth individuals (HNIs).
Ashutosh Limaye from JLL echoed similar sentiments, asserting that, regardless of the global economic slowdown, the Indian real estate market continues to maintain a degree of stability. The increase in luxury housing demand has invigorated builders to initiate projects worth several crores.
However, the demand for luxury housing is not uniform across different metropolitan cities. While places like Pune, Bangalore, and Hyderabad have shown improved demand, cities such as NCR, Kolkata, and even Mumbai have reported a stark decline.
Cushman & Wakefield India also noted that Goregaon East in Mumbai and Gurgaon in NCR topped the charts for the highest appreciation, with recorded value increases of 44% and 42%, respectively. Meanwhile, Hebbal in Bangalore and certain western regions of Hyderabad followed closely with value appreciations of 21% and 13%.
In 2012, Pune witnessed the launch of three luxury housing projects, a significant increase compared to the two launched in 2011. Each of these new units bears a price tag starting from over Rs. 1 Cr and can go as high as Rs. 7 Cr. Remarkably, the total luxury housing units in Pune surged by 250%, outpacing the overall housing unit growth of 170%.
Sanjay Bajaj, Managing Director of JLL Pune, noted that Pune holds a more favorable demand ratio for the luxury housing segment compared to other locations in the country. He attributed this to better amenities and attractive land pricing.
Rishabh Siroya, managing director of a real estate firm, emphasized that the luxury housing sector tends to remain insulated from recessions, suggesting that market fluctuations hardly impact this niche. Mr. Abhisheck Lodha, managing director of Lodha real estate group, pointed out that luxury housing accounts for only 4% of the total residential market in India.