Pune Realty Witnesses 2% Dip in Average Housing Price YoY
Pune’s real estate market has seen a two per cent price correction on a year-on-year basis, said Pune’s residential market report released by international property consultant Knight Frank. The weighted average price in Pune region has seen a 2 percent dip.
Residential markets both in Pune and Mumbai had benefited from the stamp duty cut announced by the government to boost the market last year. The holiday, which ended on March 2021, saw the region reporting a 74 per cent growth in sales.
Thus, as against the 16,870 units sold during the first half of 2020, the region reported sales of 17,474 units in the first half of 2021. Similarly, as against the complete wash-out in the second quarter of 2020, the corresponding quarter of 2021 saw better sales, although the second wave of Covid-19 was particularly harsh. This is mostly due to a modified lockdown, which allowed for activities to continue with certain restrictions.
Pune region, the report stated, has reported 50,545 units of unsold units in H1 2021 (January to June) as compared with 42,855 units unsold in the H1 2020. Launches also saw an uptick, with the first half of the current year reporting 20,477 units against 10,049 last year. In the first half of the current year, average weighted price in the region was pegged at Rs 4,010/sq/ft as against Rs 4,072/sq/ft same time last year.
The residential sales in Pune started to show resurgence in home sales and launches, especially during Q3 2020 and Q4 2020 after the reduction of stamp duty rates; this momentum was also carried into Q1 2021. However, as the second wave of the pandemic began unfolding, the momentum dropped, with Q2 2021 registering a sequential drop of 72% in volume of home sales and 87% in new home launches.
Despite the closure of stamp duty window and the second lockdown, homebuyers were active in the market in Q2 2021 and as several developers were willing to absorb the burden of increased stamp duty rates this led to closures of transactions. It is interesting to note that despite the second wave being more severe than the first wave and even without the stamp duty concessions, many homebuyers have purchased their homes, a very encouraging sign for the sector.”