PUNE: New homes launches and sales in Pune declined significantly during the April to June quarter as the Covid-19 crisis, economic uncertainty and lockdowns impacted the city according to Real Insight: Q2 2020, a report by PropTiger.com, part of the Elara Group that also owns Housing.com and Makaan.com.
New launches of 1,251 units during Q2’2020 represented 86% quarter-over-quarter and a 92% year-over-year decline. About half of the units launched were in the Rs 45 lakh–75 lakh price bracket. Chinchwad, Wakad, and Kondhwa were the only localities with new launches.
Sales declined 74% YoY while dipping 68% QoQ. Builders sold a total of 4,908 units in Pune during the quarter as compared to 18,580 units in Q2 2019. Localities like Hinjewadi and Wagholi contributed significantly to sales. Also, buyers continued to prefer 2 BHK as the most preferred configuration with nearly two-thirds of the total sales falling in this category. Nearly 62% of the total sales during Q2 2020 were units priced less than Rs. 45 lakh.
Mani Rangarajan, Group COO, Housing.com, Makaan.com, and Proptiger.com said, “As anticipated, demand was adversely impacted due to the current pandemic and the resulting economic uncertainty combined with growing unemployment. We are unlikely to see new launches increase significantly for the next few quarters as developers wait for demand revival and augment their cash flows through sales of existing units. We believe that the decline in sales is temporary and the long-term potential of Pune, a major IT hub, remains intact.”
“On the positive side, we are seeing increasing digitization of real estate with significant growth in online demand and developers and buyers moving strongly along the adoption curve for products such as virtual tours, drone shoots, video calls, and online booking platforms.,” adds Mr. Rangarajan.
Inventory overhang at 30 months
Pune has an unsold inventory of 135,124 units lower than 12% when compared to the same time last year with the ready-to-move-in category comprising 16% of this stock.
Pune ranks the second after Mumbai in terms of unsold inventory among the eight cities which were analyzed by Proptiger.com. Inventory overhang which is the time it will take to liquidate existing unsold inventory is at 30 months.
Price growth flat after registering a price appreciation of 2% compared to June 2019, average property value in Pune is at Rs. 4,951 psf. Hadapsar, Kharadi, and Tathawade are among the localities that saw some upwards movement in pricing
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
2014 The Global Indian New Network (TGINN)