Pune’s Residential Sales Stable; Mumbai Close to 1H16 Sales Numbers

Pune’s Residential Sales Stable; Mumbai Close to 1H16 Sales Numbers

  • Increased affordability, end-user market helped Pune’s residential market remain largely unaffected by demonetisation
  • Mumbai came close to 1H16 numbers thanks to good traction in the ‘compact homes’ category

  by Mr. Anuj Puri, Chairman – Anarock Property Consultants

Pune’s residential market seems to seems to have seen very little impact of demonetization if the 1H17 sales figures are anything to go by. Although the city’s apartment sales had remained steady even in 2H16 when demonetization had affected most other markets, Pune’s sales showed a slight improvement as they rose by 4% (y-o-y) in 1H17. With this development, Pune’s residential market has become India’s most dependable and established one.

Units sold
MMR
Pune
1H2016
30,200
14,800
1H2017
28,250
15,320
Y-o-Y
-6%
4%
(Source: Anarock Research)

Affordable and mid-segment housing (in the price range of INR 3,500-6,000/sq.ft.) added more than25,000 units of supply to the Pune residential real estate market in 2H16-1H17. The fringe areas ofPirangut, Bhugaon, Wagholi, Dhanori, Hinjewadi and areas in close proximity to Hinjewadi saw the maximum demand on the back of lower ticket sizes, coupled with good connectivity to the city’s primary IT hub. This trend will continue, with several more affordable and mid-segment projects likely to hit the market in these areas over the next 12-18 months.

Areas such as Dhanori, Wakad, Ravet, Undri-Pisoli, Hinjewadi, and Wagholi are now witnessing significantly increased sales enquiries, and will remain among the preferred destinations for middle-class home buyers in coming years. Housing in the price range of INR 20-35 lakh is now witnessing increased interest from private developers, and turning out to be a key driver for housing sales in Pune.

Focus shifts to increased ‘affordability’ in Mumbai

Mumbai's sales figure too came close to 1H16’s number thanks to a lot of traction in the ‘compact homes’ category. The financial capital saw sales momentum pick up further in the ensuing quarters, thanks mainly to the increase in buyer confidence after the rollout of RERA in Maharashtra. The festive season is expected to drive sales further in 2H17 as fence sitters are encouraged by a sanitized market environment and simultaneously being enticed by several offers and discounts across locations.

The latent demand in the relatively lower capital value ranges offered in some of Mumbai's suburban locations is being met by the launch of ‘compact home’ projects in recent months. This supply specifically targets the needs of professionals, singles and unmarried couples as well as upwardly-mobile nuclear families. Developers are realising that this is the new ‘sweet spot’ of a significant cross-section of Mumbai’s population, and that it makes good business sense to cater to it. The emergence of ‘compact homes’ as a new product category thanks to these factors helped push up the overall sales figure for the city.

About the author..


Anuj Puri, Chairman – Anarock Property Consultants


Arun Chitnis
Public Relations
ANAROCK Property Consultants Pvt. Ltd.
(Formerly Jones Lang LaSalle Residential Pvt. Ltd.)



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