Pune's Real Estate Market Rebounds
The Pune real estate market has experienced a resurgence, with sales figures returning to levels seen before the COVID-19 pandemic. Demand for affordable residential properties is particularly strong, driving an increase in both property prices and the market share held by larger real estate developers. This has led to renewed confidence in the market after the downturn of the first half of 2020.
Gera Pune Residential Realty Report
Gera Pune Residential Realty's bi-annual report provides a comprehensive analysis of the current state of Pune's real estate sector. The report indicates that sales have not only recovered but have reached a level comparable to pre-pandemic figures. The firm observes an average property price increase of approximately 3.4% across Pune city. Furthermore, inventory levels have reached a six-year low, both in absolute numbers and as a percentage of the total market. Interestingly, over the past five years, the total number of projects has decreased by more than 14%, and the number of new units launched has fallen by roughly 38%, concurrent with growing demand for luxury and premium-plus property segments.
The Gera Pune Residential Realty report further highlights an escalation in costs for new projects, specifically those featuring larger units, such as 3 BHK configurations. The report clearly illustrates a shift in sales towards higher-value properties. This increase in demand has contributed to the overall market's price increases. Notably, properties greater than 800 square feet have not witnessed the increased demand as the 1200–1450-square-foot segment has.
Related Article:-Impact of Coronavirus on Real Estate
Sales Trends and Market Recovery
Overall sales growth is steadily returning to pre-pandemic levels. The high-end segment has seen a particularly rapid increase in sales activity, with the Gera Pune Residentiality Report specifically noting a 24% growth rate in sales for properties between 1200 and 1450 square feet. In contrast, the segment of properties exceeding 800 square feet has not yet registered comparable growth. The first half of 2020 presented significant challenges for Pune's real estate landscape, marked by declines in sales across both residential and commercial sectors. These earlier downturns were attributed to initial pandemic uncertainty. The market’s upward trend therefore shows significant recovery in the second half of 2020.
Insights from Rohit Gera
Rohit Gera, MD of Gera Pune Residential Realty, commented on the impact of unforeseen events like the pandemic: “Uncertain events have the ability to change the market dynamics. Lockdown and Pandemic is no different. The launch of several new residential projects collapsed in the first half of the year due to Covid-19.” He acknowledged the difficult period the market underwent and the significant dip in new launches during the initial months of the pandemic and lockdown.
Mr. Gera further elaborated on the subsequent recovery: “However, the new project launch recovers in the second half of 2020 and the sales are somewhat comparable to the period same as 2019.” He also pointed to the positive impact of new development regulations introduced by the Maharashtra Government, stating that these rules have energized developers and encouraged the planning of new projects. This new momentum, according to Gera Developments estimations, should trigger higher inventory levels in the coming years to meet the anticipated surge in demand.