City’s real estate market looks up
Home launches up by 52 pc in first half of year: Report
PUNE: The number of residential launches in Pune increased by 52 per cent in the first half of the year 2019. It reached 21,396 from 14,100 in the first half of the year 2018. The housing units sold saw an increase of 6% in first half of 2019 to 17,364 from 16,451 compared to 2018 first half,” said the 11th edition of half-yearly report (January 2019-June 2019)-India Real Estate of Knight Frank India.
It was released in the city on Tuesday. Affordable residential launches dominated the half yearly report as 73 per cent of the launches in 2019 were below Rs 50 lakh.
The real estate association feels that affordable residential launches are on the rise and expects the coming months will be favourable for the real estate business since the ambiguity over Goods and Service Tax (GST) has been resolved and interest rate are going down.
“In last two to three years, real estate market is improving. However, ultra luxury apartments are not much in demand as buyers are looking for the affordable and medium sized flats. Buyers thought that the rates will dip and therefore they were waiting for it. However, now they have realised that there will be no further dip and thus they are coming forward to buy the houses,” said The Confederation of Real Estate Developers Association of India (CREDAI) Pune Metro, President Suhas Merchant.
“Good amenities also play an important role in the selection of the apartment from buyers’ end. Things are improving and in coming quarter, the figures will improve more as we are expecting more sales,” added Merchant.
“The affordable apartments have definitely gone up especially in the bracket of Rs 30 lakh to Rs 75 lakh. Projects like Maharashtra Housing and Area Development of Authority (MHADA), Pune Metropolitan Region Development Authority (PMRDA) and Pune Municipal Corporation (PMC) have been launching multiple projects. Last year, there was ambiguity over GST but post March things have been improved. However, customers were really uncertain due to elections and were waiting, but now we have a stable government with GST issue being resolved and interest rates going down, we hope that things will be better in coming time,” said CREDAI Vice President Ranjeet Naiknavare.Naiknavare added, “However, due to monsoon there won’t be much demand till September but post that in the last quarter of this year as well as first quarter of the next year, real estate will witness a steady growth. There are also chances that there will be steady price rise as well.”This report also suggests that Pune’s office market witnessed the addition of just 0.14 mn sq m or 1.5 mn sq ft of new supply during first six months of 2019. The information technology and 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.
Paramvir Singh Paul, Branch Director-Pune, Knight Frank India said, “The office market has continued its robust performance in 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 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.”