Pune recorded property registration of 14,309 units in March 2023, mentions a report by property brokerage firm Knight Frank India. Although the units registered remained consistent, stamp duty collection in March 2023 increased by 20% month-on-month (MoM) to be recorded at Rs 621 crore. The report mentioned that the total value of properties registered in March 2023 was Rs 9,215 crore.
The market saw a growth in sales of properties costing more than Rs 50 lakh that commanded 46% in March 2023 against 42% in February 2023. With consumer interest inclined towards larger properties, the share of apartments measuring 800 sq ft or above increased from 25% in March 2022 to 27% in March 2023. Primary and secondary residential deals accounted for 76% of properties registered in March 2023.
The urgency in property registrations before the stamp duty hike in April 2022, following a two-year concession period resulted in a rise in registrations of 21,389 properties and increase in stamp duty revenue of Rs 690 crore in March 2022. In this comparison, it represents a 33.1% YoY decline in registrations in March 2023.
Purchase of higher value segment properties in March 2023
Apartments costing Rs 25 – 50 lakh dominated housing demand in March 2023 accounting for 38% of transactions. However the share dropped from 39% in March 2022. Rs 50 lakh –Rs 1 crore accounted for 35% of market share in March 2023 making it second preferred ticket size, the demand share went up by two percentage points from 33% in March 2022 to 35% in February 2023. The share of the higher value segment increased, as it rose from 42% in March 2022 to 46% in March 2023, mentioned the report.
Share of ticket size for residential property transactions
| Ticket size | Share in March 2022 | Share in February 2023 | Share in March 2023 |
| Under Rs 25 lakh | 18% | 18% | 16% |
| Rs 25 – 50 lakh | 39% | 36% | 38% |
| Rs 50 lakh – 1 Cr | 33% | 35% | 35% |
| Rs 1 Cr – 2.5 Cr | 8% | 10% | 10% |
| Rs 2.5 Cr – 5 Cr | 1% | 1% | 1% |
| Over Rs 5 Cr | <0% | <0% | <0% |
Source: IGR Maharashtra
Higher demand of larger apartments sustains
Demand for apartments with an area of 500 – 800 sq ft accounted for half the property transactions in March 2023. The share increased from 48% in March 2022 to 50% in March 2023. Under 500 sq ft homes accounted for 23% of transactions in March 2023 making it the second most preferred apartment size. The share of over 800 sq ft apartment area increased from 25% in March 2022 to 27% in March 2023.
Share of area for residential property transactions
| Area in sq ft | Share in March 2022 | Share in February 2023 | Share in March 2023 |
| Under 500 | 26% | 25% | 23% |
| 500-800 | 48% | 47% | 50% |
| 800-1000 | 12% | 14% | 13% |
| 1000- 2000 | 11% | 13% | 12% |
| Over 2000 | 2% | 1% | 1% |
Source: IGR Maharashtra
Shishir Baijal, chairman and managing director, Knight Frank India said, “The Pune residential market continues to show strength despite higher home loan interest rate and property price as end-users continue to dominate the market on the back of their desire for home ownership and supportive affordability. The pause in the policy repo rate hike cycle will further lend comfort to the homebuyers in this city, where majority of the sales happen under Rs 50 lakh value segment. The ongoing infrastructural improvements and abundance of job possibilities also remains supportive of the city’s housing market.”
56% of homebuyers are from 30-45 year age group
Buyers in the age group of 30-45 years category had a share of 56%. Home Buyers under 30 accounted for 21% share in Pune. While home buyers falling in the age group of 45- 60 years accounted for 17% of market share. This is largely because Pune remains a strong end user market which depends on bank financing to complete their home purchase therefore the share in the stable professional segment is the highest.
Share of age of buyers
| Age | Share in February 2023 | Share in March 2023 |
| 30 and under | 21% | 21% |
| 30 – 45 | 56% | 56% |
| 45 – 60 | 18% | 17% |
| Over 60 | 6% | 5% |
Source: IGR Maharashtra
74% of homebuyers belonging to Pune
More than half the home buyers are located within the Pune region accounting for 74% of the demand. Homebuyers from neighbouring regions like Aurangabad accounted for 12% and Mumbai and Navi Mumbai regions jointly accounted for 7% of the market demand.
Location of home buyers
| Buyer location | Share in February 2023 | Share in March 2023 |
| Outside Maharashtra | 1% | 1% |
| Aurangabad Region | 12% | 12% |
| Goa Region | 5% | 4% |
| Mumbai Region | 3% | 3% |
| Nagpur Region | 3% | 3% |
| Navi Mumbai Region | 4% | 4% |
| Pune Region | 72% | 73% |
Source: IGR Maharashtra
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
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