Pune has seen a steady increase in property acquisition and with January 2024 recording the second-best monthly performance in the last 24 months. Knight Frank India, in its latest assessment, noted that 17,785 properties were registered in Pune in January indicating a substantial rise of 46% compared to the same month last year.
Stamp duty collections during this period amounted to Rs 589 crores, marking a notable 34% year-on-year increase for January.
Also Read: Will Home Prices Be Affordable Again? Housing Market Predictions For 2024
Of the total transactions registered 70% were for residential purchases, reflecting the confidence among homebuyers in Pune, driven by favourable affordability and a positive outlook on property ownership, the report said.
Increase in the purchase of Higher Value Segment (above Rs 1 crore) in January 2024
In January 2024, registration of residential units priced between Rs 50 lakhs and Rs 1 crore was the highest, comprising 32% of all housing transactions in the month. Similarly, the share of properties priced between Rs 25 lakhs and Rs 50 lakhs stood at 31% of the market share, a close second.
Interestingly, the higher value segment, comprising properties priced at Rs 1 crore and above, experienced growth in its market share. This segment’s share increased from 10% in January 2023 to 14% in January 2024, indicating a rising preference for properties in this price range.
Higher demand for larger apartments sustains
In January 2024, apartments within the range of 500 to 800 sq ft, had a substantial 41% share. Apartments with an area under 500 sq ft also garnered significant attention, comprising 33% of transactions in January 2024, making it the second most preferred apartment size.
Notably, there was a significant shift towards larger apartments, with those exceeding 1000 sq ft experiencing an increase in market share from 12% in January 2023 to 14% in January 2024.
Shishir Baijal, chairman and MD, Knight Frank India, said, “Pune’s real estate market continues to demonstrate growth, buoyed by a strong desire for homeownership, an attractive affordability level, and a supportive business environment in the city. January 2024 saw a robust 46% year-over-year increase in registrations, signalling a promising start to the year. The rising preference for larger properties reflects the dynamic nature of Pune’s real estate market.
Additionally, the incremental growth in the category of properties priced higher than Rs 1 Crore also serves as a fine indicator of the city’s economic fundamentals, enabling buyers to make longer-term financial commitments and expose themselves to high-value investments. With ongoing infrastructure improvements and economic growth, Pune’s residential market is consolidating its strong foundation, laying the groundwork for a thriving real estate sector.”
Central Pune accounted for 75% of total residential transactions in January 2024
In January 2024, Central Pune, which encompasses Haveli Taluka, Pune Municipal Corporation (PMC), and Pimpri Chinchwad Municipal Corporation (PCMC), continued to dominate residential transactions, maintaining its significant share at 75%. While dominant, this share has declined somewhat compared to the same period in the previous year as new supply in the rest of the city increasingly meets the contemporary needs of the Pune homebuyer. \
West Pune, covering regions like Mawal, Mulshi, and Velhe, held the second-largest share of residential transactions, accounting for 15% of the total in January 2024.
Conversely, North, South, and East Pune collectively held a smaller share of residential transactions, comprising 11% of the total in January 2024, albeit their shares have seen a marginal rise over the same time last year.
54% of homebuyers in 30- 45 years age group
Homebuyers in the age group of 30 – 45 years constituted the largest buyer segment, holding a substantial 54% share of the market. Those under the age of 30 accounted for 24% of the market share, while homebuyers in the 45 – 60 years age category represented 16% of the market.
This distribution can be attributed to Pune’s status as a robust end-user market, where individuals often rely on bank financing to facilitate their home purchases. Consequently, there is a strong presence of professionals in the market, particularly in the 30 – 45 years age bracket, which is the largest segment.
Comments
0 comment