Gera releases Pune Residential Realty Report – July’18
Gera Developments, pioneers of the real estate business in Pune, Goa and Bengaluru, yesterday presented the Gera Pune Residential Realty Report for July 2018. The report reveals that the steep drop in the number of new apartments being launched has led to a reduction in the total inventory under development as well as a reduction in the absolute number of apartments available for sale.
From a peak inventory available for sale at 107,402 apartments in June ‘16 the inventory available for sale currently stands at 79,546 apartments. This puts unsold inventory at approximately Q1 2015 levels. The current inventory available for sale at 26.29% (79,564 apartments) is just below the Dec ‘13 unsold inventory which stood at 26.34% (55,377 apartments).
The result of the slowdown in the realty sector is clearly visible in the number of new apartments being launched. On an annual basis, the drop from the year July ’14-June ’15 to the year July ’17 – June ’18 new apartment launches have dropped by nearly 50% from 110,824 apartments to 56,410 apartments.
Mr. Rohit Gera, Managing Director, Gera Developments said, “Pune’s residential real estate market continues to be in a state of stress. Developers have cut back substantially on project launches. With the implementation of RERA, capital has been forced to flow towards project execution, which has contributed to the slow-down in launches of projects. Sales too have continued to see a drop on a year on year basis. The impact of slower sales is also visible on the rates – the slow reduction in average rates continues. The reduction of project launches however, has led to some good news in terms of percentage of inventory available for sale,at 26.29% of the total inventory available, this percentage of unsold inventory is near a 4.5 year low. This could turn into great news as and when the sentiment turns.”