E-Paper
Gera Developers realty sector report highlights affordability and builder credibility
The Pune-based Gera Developers residential report on Pune’s realty sector (July-December 2019) indicates that affordable housing is at an all-time high. It also
The Pune-based Gera Developers residential report on Pune’s realty sector (July-December 2019) indicates that affordable housing is at an all-time high. It also states that genuine buyers are purchasing homes only from credible developers.
According to Gera’s report total inventory is at an all-time high. The inventory for sale has also risen after falling since June 2017, indicating that supply is outstripping demand.
The total number of units under development reached a peak level of 3,27,670 units in June 2017. Since then, on account of a reduction in new project launches, the total inventory contracted for next two years and finally rebounded by 3 per cent to 3,01,731 units in June 2019 from 292,842 in December 2018 while it grew further by another 12 per cent to 2,26,186 units.
“As of December 2019, affordability is at an all-time high. The consistent reduction in rates and the salary increments have led to a situation where the house cost is 3.71 times the salary. This makes it affordable,” said Rohit Gera, managing director, Gera Developments.
“This is certainly a strong increase in purchasing power. Customers, however, are no longer willing to buy homes from any developer. Those with a track record, with high standards of governance and a strong view of customer needs, are finally getting rewarded by customers with buoyant sales and price premiums.
“The sector seems poised at a crossroad. We have seen an increase in supply that is more than the demand. If the union budget brings in any incentives for purchasing of homes through demand stimulation incentives, the industry could see a big change for the positive for many more developers. If however this doesn’t happen, the prolonged stress can lead to many more fatalities along the way leading to further consolidation of the sector,” added Gera
The report states that implantation of Maha-Rera has reduced the projects in Pune from 3,733 projects in June 2017 to 3,490 in Dec 2019.
“As of December 2019, the total number of projects on hold (where work has commenced and presently stopped) has reached 249. These 249 projects consist of 40,023 apartments and based on our prior data, 23,466 apartments are sold. This means approximately 24,000 families are stuck with incomplete projects at present,” said Gera.
The solution to which, according to Rohit Gera, is for customers to come together and build their homes instead of losing on their token amount being stuck.
The report states that the Pune market consists of 3,490 live projects of which 2,386 are less than 100 units. The report also highlighted that new launches in the city have increased significantly by 37 per cent. In 2019, 99,541 apartments were launched as compared to the 72,503 launched in 2018.
According to the report, there is a significant increase in new inventory launched in the premium as well as the luxury category and witnessed growth rates of 44.5 per cent and 31.9 per cent respectively.
