Pune’s real estate sector showing signs of recovery, says report
Hit by the Covid-19 lockdown, Pune’s real estate market is showings signs of recovery during the unlock period, according to a report by Knight Frank India, a real estate consultancy firm. As per the report, 4,918 housing units were sold between the three months of July and September.
This was 60 per cent more as compared to 2,235 units sold during April to June quarter. In the pre-Covid-19 quarter (January to March), the number of housing units sold were 7,813.
As far as new launches are concerned, city has seen 6,721 projects being launched during July to September, compared to 785 in April to May and 12,650 between January and March.
According to Rajani Sinha, chief economist and national director (research), Knight Frank India, Maharashtra’s government’s stimulus and strong demand has led to increase in the sale. “Strong demand stimulus like the one by the Maharashtra government and historic low home loan interest rates have been the key reason for the current uptick residential sales. These measures have compelled end-users, those looking for good deals for their property, to make their purchase decision. Developers also took the opportunity to make a strategic offer, especially on their unsold inventory, to support the sales velocity,” said Sinha.
The state government in its efforts to revive demand in real estate sector reduced stamp duty from five per cent to two per cent. The concession will be applicable temporarily from September 1 till December 31.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “There has been a meaningful improvement in sales and launches in Q3 2020. Developers have been focusing on liquidating inventory and homebuyers inclined to purchase ready assets has translated into reduced unsold inventory levels in this quarter. For markets such as Mumbai and Pune, the additional push by the state government in the form of reduced stamp duty has helped in demand generation and revenue creation for the state government.”
According to the report, property prices in Pune have seen dip by around five per cent. In terms of rental values, there has been no change in Pune.
According to Suhas Merchant, president of Credai-Pune Metro, customers are preferring projects nearing completion rather than under-construction sites while purchasing flats. “Buildings reaching their completion stage with good infrastructure are fetching good demand and western side of the city which have big flats are also in demand. We expect the demand to pick up in the near future,” said Merchant.