E-Paper
Pune registers 74% YoY growth in residential sales: report
Home sales in Pune has witnessed a significant growth of 74 per cent year-on-year (YoY) to 17,474 units in the first half of 2021 against 10,049 units in the same period during 2020, according to a “India Real Estate January – June 2021” report released by Knight Frank India on Thursday
Home sales in Pune has witnessed a significant growth of 74 per cent year-on-year (YoY) to 17,474 units in the first half of 2021 against 10,049 units in the same period during 2020, according to a “India Real Estate January – June 2021” report released by Knight Frank India on Thursday.
This performance, according to the report, can be attributed largely to robust sales clocked in first quarter of 2021 which was whipped by the lower stamp duty window and a low base of second quarter of 2020. New launches in Pune also grew by 52 per cent to 20,477 units in H1 2021 from 13,435 units in H1 2020. The healthy increase in launches is mainly due to the lower base effect and less stringent lockdown during the second wave of Covid-19. The government permitted construction activity, followed by guidelines which aided launched to grow.
The residential sales in Pune started to show resurgence in home sales and launches, especially during the third quarter in 2020 and fourth quarter in 2020 after the reduction of stamp duty rates; this momentum was also carried into first quarter of 2021. However, as the second wave of the pandemic began unfolding, the momentum dropped, with Q2 2021 registering a sequential drop of 72 per cent in volume of home sales and 87 per cent in new home launches.
With reference to the performance of micro-markets, markets in the West (which includes Aundh, Baner, Wakad, Hinjewadi, Bavdhan, Pashan) and East (which includes Viman Nagar, Kharadi, Wagholi, Hadapsar, Dhanori) continued to dominate sales in Pune.
In H1 2021, markets in the West had the highest- 39 per cent share of new sales followed by the East at 23 per cent. Proximity to office hubs is the reason why these markets are witnessing greater traction. The homebuyers are cognizant of the fact that they will be required to go to the office at least a few days a week once things return to normal and are showing a preference for locations close to employment hubs.
