#THROWBACK 2019: Real estate sector growth in city showed positive trend albeit slow 

Anvita Srivastava
Saturday, 21 December 2019

The founder of Tru Realty Private Limited, Sujay Kalele said, “Although the demand has been bleak throughout the year, the city has seen a positive trend in affordable and budget segments in the third quarter of the financial year.” 

Pune: The real estate sector seems to be recovering slowly post-demonetisation with the industry showing a positive trend for demand of affordable housing and commercial properties in the State, though the growth is still not as pacey as it was before demonetisation in November 2016. 
 
If property registration figures are taken into consideration, about 15.77 lakh property registrations were recorded for the financial year till now (April 1 to December 16, 2019) which generated a revenue of Rs 20,174 crore for the Inspector General of Registration and Controller of Stamps (IGR). The officials of the IGR said they are positive of growth in the real estate sector and hence they have planned to achieve a target of Rs 27,000 crore by the end of the current financial year (March 2020). 
The registration figures shared by IGR also reflected that the sector is yet to touch the pre-demonetisation mark where 23.08 lakh registrations were recorded in 2015-16 in Maharashtra.

The founder of Tru Realty Private Limited, Sujay Kalele said, “Although the demand has been bleak throughout the year, the city has seen a positive trend in affordable and budget segments in the third quarter of the financial year.” 

Scenario in the city
Considering the ongoing slump in the industry due to various reasons, the government too stepped in and announced to infuse aid of Rs 25,000 crore in the real estate market.
 
However, real estate experts have pointed out that this aid would not be of much help in the immediate revival of the sector.

Sharing his insights on the growth of the sector, President of CREDAI-Pune Metro Suhas Merchant, said, “These days most of the developers are shifting their offerings from luxurious homes to smaller ones that can fit well into customers’ budget. The year 2019 was very hopeful for the industry in Pune as it showed signs that the market situation is improving.”

GST uncertainty
Ranjit Naiknavare, Vice President of CREDAI-Pune Metro pointed that while there was a slump in the first half of 2019, the city witnessed a positive growth trend towards the second half of the year. 
He shared that uncertainty on the Goods and Services Tax (GST) input credit has been put to rest.

“Interest rates have also been reduced which has improved the demand. While the interest rates are at the lowest currently, rising cost in infrastructure and environmental compliances blended with denial of input credit on GST (which has a 15 % impact) will propel the market prices upwards.” 

He expects the markets to be better in future if the economy and ‘overall job security improve’. 

Naiknavare added that in Pune, key sectors like IT, Services and Education support the real estate industry even today, but hopes for a speedy recovery in the automobile sector. 

Kalele said that reforms in RERA and GST will help the market improve. 

New launches in Pune
Experts have shared that new launches have increased in the north-west submarket of the city such as Balewadi, Mahalunge, Wakad and Bavdhan and areas like Kharadi, Wagholi and Keshav Nagar are new popular residential locations in the eastern parts of the city.

Managing Director of Vastushodh Projects, Sachin Kulkarni told Sakal Times, “There have been some sprouts of upward movement in selective pockets, but generally the mood has been sombre. Commercial development has seen a healthy growth in Pune which will reflect in the uptake of the residential market in 2020.” 

Kalele revealed that areas like Hinjawadi, Ravet, Mahalunge and Wagholi have witnessed a rise in sales due to the varied product offerings. 

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