Real estate consultancy, Knight Frank India, in its latest assessment, noted that property registrations in Pune district, in September 2023, rose by 65% year-on-year (YoY) with a total of 16,422 units being registered against 9,942 registrations in September 2022.
Stamp duty collections in September 2023 also witnessed substantial growth, rising by an impressive 63% YoY to reach a total of Rs 580 Crores. Furthermore, the cumulative value of the registered properties in September 2023 amounted to Rs 12,286 Crores.
On a year-to-date (YTD) basis, the city has recorded a total registration of 107,445 properties, reflecting a 7% growth compared to 100,166 registrations in the same period last year. However, stamp duty collections have shown a more substantial increase of 12.5%, reaching Rs 3,805 crores.
Concurrently, the overall value of registered properties in Pune has exhibited significant growth, surging by 33% year-on-year to reach Rs 81,300 crores during the same period.
Increase in purchase of Higher Value Segment (above Rs 1 crore) in September 2023
In September 2023, residential units priced between Rs 25 lakhs and Rs 50 lakhs were the most sought-after, comprising 34.4% of all housing transactions, while, the share of properties priced between Rs 50 lakhs and Rs 1 crore stood at 33.6% of the market share.
Pune Property Rates
Interestingly, the higher value segment, comprising properties priced at Rs 1 crore and above, experienced growth in its market share. This segment’s share increased from 9% in September 2022 to 11% in September 2023, indicating a rising preference for properties in this price range.
Homes costing over Rs 2.5 Crores saw a rise of over 97% in September 2023 with 114 properties being registered in the month as against 58 units in September 2022. This jump is a strong indication of the strength in the market and the economic confidence demonstrated by end users.
Higher demand for larger apartments sustains
In September 2023, there was a strong demand for apartments within the range of 500 to 800 sq ft, constituting little over half of all property transactions registered in the month at a substantial 51% share. Apartments with an area under 500 sq ft also garnered significant attention, comprising 25% of transactions in September 2023, making it the second most preferred apartment size.
Notably, there was a significant shift towards larger apartments, with those exceeding 800 sq ft experiencing an increase in market share from 22% in September 2022 to 24% in September 2023.
Shishir Baijal, chairman & MD, Knight Frank India, said, “The Pune housing market continues to thrive due to a sustained demand for homeownership and favourable affordability conditions within the city. Additionally, the growing preference among homebuyers for larger properties contributes to the strength of Pune’s real estate sector. The ongoing improvements in infrastructure and the consistent expansion of economic activities further bolster the resilience of Pune’s housing market.”
Central Pune accounted for 75% of total residential transactions in September 2023
In September 2023, Central Pune, which encompasses Haveli Taluka, Pune Municipal Corporation (PMC), and Pimpri Chinchwad Municipal Corporation (PCMC), continued to dominate residential transactions, maintaining its significant share at 75%. This percentage remained largely unchanged compared to the same period in the previous year. West Pune, covering regions like Mawal, Mulshi, and Velhe, held the second-largest share of residential transactions, accounting for 15% of the total in September 2023.
Conversely, North, South, and East Pune collectively held a smaller share of residential transactions, comprising 10% of the total in September 2023.
53% of homebuyers in 30- 45 years age group
Homebuyers in the age group of 30 – 45 years constituted the largest buyer segment, holding a substantial 53% share of the market. Those under the age of 30 accounted for 21% of the market share, while homebuyers in the 45 – 60 years age category represented 19% of the market.
This distribution can be attributed to Pune’s status as a robust end-user market, where individuals often rely on bank financing to facilitate their home purchases. Consequently, there is a strong presence of professionals in the market, particularly in the 30 – 45 years age bracket, which is the largest segment.