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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