Property prices shoot up 9% in Pune in June quarter
Pune, 19th September , 2022: Property prices in Pune have increased by 9% YoY in Pune in the April-June quarter of 2022 amid an increase in benchmark lending rates and upward pressure on input costs owing to the ongoing geo-political tensions, as reported by online real estate company PropTiger.com backed by REA India.
According to the report, titled Real Insight Residential – April-June 2022, the average property price for new and existing inventory in this western city of India stood at Rs 5,400-5,600 per square foot as of June 30, 2022.
Despite this spike, property prices in Pune are comparatively lower than in other major cities in India such as Mumbai, Hyderabad, Bengaluru, and Chennai. Apart from these cities, analysis done by REA India-backed PropTiger.com also includes Ahmedabad, Kolkata, and the Delhi-National Capital Region.
|Price in INR/sq. ft as of June’22|
|City||Price INR/sq. ft as of March’22||YoY % growth|
|India||6,600 – 6,800||7%|
*Weighted average prices as per new supply and inventory
Source: Real Insight Residential – April-June 2022, PropTiger Research
“The steep hike in property prices coupled with rising repo rates have to an extent cast a shadow on the homebuyer sentiments in Pune, which is also visible in the residential realty growth momentum that has slowed down sequentially. However, the repo rates still remains below the pre-pandemic levels of 6-7%. Along with this, the impending festive season and upward trend witnessed in office offtake will act as strong sentiment boosters for the fence-sitting buyers in Pune in near future.” said Vikas Wadhawan, Group CFO, Housing.com, PropTiger.com & Makaan.com.
Sales and new supply growth momentum in Pune slows down in the June quarter
Sales and new supply in Pune, both recorded a dip of 16% and 14% respectively in April-June 2022 quarter, as compared to the previous quarter. Despite the decline, residential new launches and demand in Pune are 90% closer to the pre-pandemic levels of 2019. A total of 13,390 units were launched in Pune during the three-month period while 13,720 homes were sold during the quarter.
Micro-markets such as Ravet, Hinjewadi, Moshi, Tathawade and Wakad witnessed the maximum demand in Q2 2022. Majority of sales in Hinjewadi and Moshi were concentrated in the INR 25-45 lakh price bracket, and INR 45-75 lakh price bracket in case of Ravet, Tathawade and Wakad. Homebuyers in Pune continued to prefer units in the 2 BHK configuration, which took a share of 53 per cent in the overall sales in the city.
“Pune, though takes the second highest share in residential demand amongst the top-eight metros, the city has witnessed a 16 per cent sequential drop in property sales in the quarter ending April-June 2022. With controlled new launches and an increase in property prices due to input cost pressures, Pune’s property market has been put on the backfoot. Although with strong fundamentals in place and the opening up of offices will push the demand back in positive zone in coming quarters.” said Ankita Sood, Director and Head of Research, Housing.com, PropTiger.com & Makaan.com.
Inventory overhang in Pune down to 25 months: lowest in top-8 cities after Kolkata
Developers in Pune are sitting on the highest unsold stock of 1,17,990 units, after Mumbai, as of June 30, 2022. However, while the sales velocity has moderated in the city sequentially it still remains well above the bottomed quarter of Q2 2021 owing to the second wave of the pandemic. Hence, builders are expected to take 25 months as of June 2022 to clear this unsold stock as against 44 months at the end of Q2 2021.