In both Mumbai and Pune, the demand for homes of INR 1 crore and above ticket size have grew by 24 per cent in Q2 2023, as compared to pre-pandemic levels of Q2 2019. Notable in the case of Pune, the sales in this price range doubled during the same period.
The data provides valuable insights into the real estate markets of these two dynamic cities, presenting exciting opportunities for homebuyers and investors.
Mr. Vikas Wadhawan, Group CFO, REA India & Business Head – PropTiger.com, said, “The real estate sector’s unwavering growth in Pune and Mumbai serves as a testament to the enduring appeal of the region and its potential for sustainable investment opportunities. With a positive outlook and strategic planning, both cities present exciting prospects for individuals seeking their dream homes or making prudent investments.”
Mr. Wadhawan further added, “We anticipate that the market trends observed in Q2 will continue to pave the way for a resilient and dynamic real estate landscape. We remain committed to providing valuable insights and guidance to both homebuyers and sellers in navigating these evolving markets.”
Sharing insights from the report, Ms. Ankita Sood, Head of Research, PropTiger.com, Housing.com & Makaan.com, said, “The demand for high-end properties have surged across cities as upwardly mobile buyers see them as a lifestyle and safe haven than merely an investment, especially post-pandemic. In case of Pune, we see a visible shift in demand from mid to high segment, with demand in INR 1-3 crore price segment clocking a remarkable growth of 117 per cent in Q2 2023 over the pre-pandemic period of 2019.”
Ms. Sood elaborated, “In Mumbai, the fastest growth in demand was seen in the INR 3-7 crore price segment, which recorded a 34 per cent growth during the same period. Increased demand, need for upgradation and better lifestyle, rising capital values in peripheral regions are all contributing to this growth.”
Mumbai (MMR)
In Mumbai, the new supply of residential properties experienced a YoY degrowth of 23 percent in Q2 2023 to 33,330 units from 43,230 units during Q2 of 2022. However, there was a promising semi-annual growth of 27 percent in H1 2023 (Jan2023 – June2023) to 93,330 units from 73,580 units in H1 2022. Majority of new projects were launched in themicro markets of Thane West, Dombivli, and Panvel as these peripheral areas continue to remain in spotlight as compared to the main city.
Notably, 31 percent of the launched units fall within the INR 45-75 lakh price bracket, followed by a 25 percent share in the more than INR 1 crore price bracket. The share for more than
Sales grew by 16 percent YoY in Q2 2023 and exhibited an even higher semi-annual growth of 27 percent in H1 2023 compared to H1 2022. Mumbai maintained its stronghold with the highest share of 38 percent in the national sales tally. Preferred localities for homebuyers in Q2 2023 included Thane West, Dombivli, Panvel, Vasai and Bhiwandi. These regions offer the allure of Mumbai’s economic opportunities and urban life, at relatively lower prices as compared to main suburbs.
While Mumbai holds the highest share of 36 percent in the total unsold inventory of 9.44 lakhs across the top-8 cities, the inventory overhang significantly reduced to 33 months at the end of Q2 2023, compared to 38 months in the preceding year, on the back of sustained sales velocity.
Pune
Pune’s real estate market demonstrated robust growth in Q2 2023, with a staggering 99 percent YoY increase in new supply to 26,610 units from 13,390 units during Q2 of 2022, further surging by 114 percent semi-annually in H1 2023(Jan2023-Jun2023) to 62,100 units from 28,970 units during H1 of 2022.
Localities such as Charholi Budruk, Hadapsar, and Punawale witnessed the launch of a maximum number of new units, catering to the rising demand.
Residential sales in Pune grew to 18,850 by 37 percent YoY in Q2 2023(April2023-June2023) from 13,720 in Q2 2022(Apr 2022-June 2022) and recorded a promising semi-annual growth of 26 % in H1 2023(Jan-June 2023) from 37,760 vs 30,030 recorded during H1 of 2022. The demand for properties remained strong in the industrial belt of Hadapsar, Charholi Budruk, Tathawade, Ravet, and Hinjewadi.
In terms of price brackets, majority (36 percent) of the demand was seen for units in the INR 45-75 lakh range. Notable units in INR 1 crore and above took 14 per cent share in overall sales in Q2 2023, significantly higher than 5 per cent share in pre-pandemic period of Q2 2019. In Q2 2023, 53 percent of the units sold comprised the 2BHK configuration, with 1BHK units accounting for 25 percent of the sales.
