Pune: The unsold inventory in the real estate sector in the city is 135,124 units which is 12 per cent less year-on-year basis with the ready-to-move-in category comprising 16 per cent of this stock. The inventory overhang – the time required to liquidate the existing unsold inventory – is at 30 months.
New homes launches and sales in Pune have declined significantly during the April to June quarter as the Covid-19 crisis, economic uncertainty and lockdowns impacted the city, says a report titled Real Insight: Q2 2020 by PropTiger. New launches of 1,251 units represented a 92 per cent 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. The report also says that Pune ranks second after Mumbai in terms of unsold inventory among the eight cities in the country.
According to the report, sales declined 74 per cent year-on-year. While builders sold a total of 4,908 units in Pune during the second quarter as compared to 18,580 units in second quarter of 2019, localities like Hinjawadi and Wagholi contributed significantly to sales. Also, buyers continued to prefer 2 BHK as the most preferred configuration with nearly two-third of the total sales falling in this category. Nearly 62 per cent of the total sales during the second quarter of this year were units priced less than Rs 45 lakh.
Mani Rangarajan of Proptiger 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,” Rangarajan added.
After registering a price appreciation of 2 per cent compared to June 2019, average property value in Pune is at Rs 4,951 per square feet. Hadapsar, Kharadi, and Tathawade are among the localities that saw some upwards movement in pricing, the report states.