94% of the new residential launches were in the affordable sub-INR 7.5 million segment
Pune office market vacancy at a historic low of 5.2%, transactions closer to half-yearly record: Knight Frank Report
PUNE: Knight Frank India today launched the 11th edition of its flagship half-yearly report – India Real Estate. The report presents a comprehensive analysis of the residential (across eight cities) and office (across eight cities) market performance for the period of January – June 2019 (H1 2019). The report findings establish that the number of residential launches in Pune increased by 52% in H1 2019 to 21,396 from 14,100 in H1 2018. The housing units sold saw an increase of 6% in H1 2019 to 17,364 from 16,451 in H1 2018.
Pune’s office market witnessed the addition of just 0.14 mn sq m or 1.5 mn sq ft of new supply during H1 2019. Such an acute supply crunch is forcing occupiers to scout for or enter into pre-commitments or built-to-suit (BTS) options. The information technology/information technology-enabled services (IT/ITeS) sector has been the largest driver of office space in Pune. The transactions activity in Pune continues to remain robust, with the city witnessing transaction of 0.35 mn sq m (3.8 mn sq ft). The average deal size increased from 4,166 sq m or 44,843 sq ft per deal to 5,043 sq m or 54,286 sq ft per deal.
RESIDENTIAL MARKET HIGHLIGHTS OF PUNE:
Paramvir Singh Paul, Branch Director-Pune, Knight Frank India said, “While new launches are back in the Pune market, the spurt in launches has not translated into significant growth in sales yet. Buyers are still in the ‘wait-and-watch’ mode and are waiting for prices to come down further. The current growth in residential sales has been largely driven by affordable segments. With the latest reduction in GST rates, the tax rate is now similar to the pre-GST era where the aversion to under-construction due to tax impact was lower. This is a welcome move which may help developers bring certain segment of homebuyers back to the under-construction apartments.”
OFFICE MARKET HIGHLIGHTS OF PUNE:
Paramvir Singh Paul, Branch Director-Pune, Knight Frank India said, “The office market has continued its robust performance in H1 2019. The problem of supply crunch showed no signs of abating and the impact was evident in the significant number of pre-commitment deals in H1 2019. The vacancy levels in NCR were at a historic low of 5.2%. This coupled with the robust demand from occupiers is adding significant upwards pressure on the rentals.”
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