Pune: The Pune realty market saw a price decline for the first time in a decade. The project launches in the city shrunk by 58 per cent in second half of 2017, as developers’ focus shifted towards completing existing projects. New projects are down by a staggering 77 per cent from its peak in 2012. Knight Frank India has launched the eighth edition of its flagship half-yearly report on ‘Indian Real Estate’ on Wednesday. The report is based on the comprehensive analysis of the residential and office market performance of Pune for the period from July to December 2017.
Paramvir Singh Paul, Branch Director, Knight Frank, Pune, said, “Maharashtra was the only state that notified the RERA rules in a timely manner and subsequently implemented it statewide. Despite this, there has been no meaningful positive impact on sales on account of renewed confidence in the case of Pune in H2 2017. Sales were marginally lower at 2 per cent year-on-year (YoY) in H2 2017, which could be attributed to the consumer sentiment being dented by job losses in the IT industry.”
According to the report, residential launches shrunk by 58 per cent in the second half in 2017.
Developers make the deal sweeter with collective discounts of up to 12-13 per cent. The sales’ volumes in the second half are down by 2 per cent YoY but upcoming IT markets in western Pune have performed better in the second half in 2017 recording a 27 per cent rise in sales.
“The upcoming IT markets of western Pune have performed better in H2 2017, recording a 27 per cent rise in sales. Launches, on the other hand, declined by 58 per cent in H2 2017 compared to H2 2016 as developers focused their efforts on completing ongoing projects rather than on launching new ones. For the first time in this decade (2011-2020), there was a reduction in quoted prices in Pune, as the weighted average prices reduced by 7 per cent YoY. In addition to the reduction in base prices, developers offered discounts in the form of freebies, thereby taking the effective discount to 12-13 per cent. The overall unsold inventory levels during H2 2017 fell by 43 per cent YoY to 28,455 units, down 60 per cent from the peaks of H1 2014 while the QTS (Quarters To Sell) drops to less than a year,” Paramvir said.