Pune property market growth zooms 99% annually: Report

The real estate market in Pune continues to thrive, showing resilience and growth. Property registrations in Pune, in August, soared by 99 per cent year-on-year (YoY), with a total of 13,021 units registered, as opposed to 6,544 registrations in the same month last year, according to a report by Knight Frank India.

In August, the stamp duty collections witnessed substantial growth, rising by 82 per cent YoY at Rs 423 Crores. During the same month, the cumulative value of the registered properties amounted to Rs 10,613 Crores, reflecting a strong and vibrant property market.

Year-to-date growth

On a year-to-date (YTD) basis, Pune recorded a total of 91,023 property registrations, marking a modest 1 per cent growth compared to the previous year. However, stamp duty collections exhibited a more substantial increase, surging by 6.6 per cent to Rs 3,226 crores. During the same period, the overall value of registered properties in Pune witnessed remarkable growth, surging by 25 per cent year-on-year to reach Rs 69,015 crores.

Rise in high-value segment

In August, properties priced at Rs 1 crore and above accounted for 11 per cent of the market share, up from 9 per cent in the same month last year. The luxury segment, with homes costing over Rs 2.5 crores, saw an impressive 99 per cent rise in registrations, with 130 properties registered in August, against 65 units in August 2022.

Changing property preferences

The data also revealed shifting property preferences among the buyers. Residential units priced between Rs 25 lakhs and Rs 50 lakhs remained the most sought-after category in August, making up 34 per cent of all housing transactions. Properties priced between Rs 50 lakhs and Rs 1 crore accounted for 32 per cent of the market share. The trend, however, indicates that Pune's real estate market caters to a diverse range of buyers with varying budget preferences.

Furthermore, the demand for larger apartments is on the rise, with units between 500 to 800 sq ft constituting nearly half (47 per cent) of all property transactions in August. Apartments exceeding 800 sq ft also increased in market share from 26 per cent in August 2022 to 29 per cent in August 2023, indicating a growing preference for spacious living spaces.

Regional dominance

Central Pune, encompassing areas such as Haveli Taluka, Pune Municipal Corporation (PMC), and Pimpri Chinchwad Municipal Corporation (PCMC), continued to dominate residential transactions, accounting for 72 per cent of total transactions in August. West Pune, including regions like Mawal, Mulshi, and Velhe, held the second-largest share at 16 per cent.

The largest buyer segment in Pune's real estate market remains individuals in the 30 – 45 years age group, constituting 55 per cent of all buyers. This demographic is driven by professionals relying on bank financing for home purchases.

Shishir Baijal, MD, Knight Frank India, credits Pune's strong real estate market to high homeownership aspirations, affordability, infrastructure growth, and economic activity.

“The Pune residential market continues to thrive, driven by a persistent aspiration for homeownership and a favourable affordable landscape within the city. Moreover, the growing preference amongst homebuyers for spacious properties further enhances the dynamism of Pune's real estate sector. Additionally, ongoing infrastructure developments and increasing economic activities consistently bolster the resilience of Pune's housing market,” Baijal said.