Over 13,000 properties registered in Pune in August 2023: Report

September 13, 2023: Property consultant Knight Frank India, in its latest assessment report highlighted that property registrations in Pune district, in August 2023, rose by 99% year-on-year (YoY) with 13,021 units being registered against 6,544 registrations in August 2022. Stamp duty collections in August 2023 rose 82% YoY to reach Rs 423 crore. Furthermore, the cumulative value of the registered properties in August 2023 amounted to Rs 10,613 crore.

Shishir Baijal, chairman and managing director, Knight Frank India said, “The Pune residential market continues to thrive, driven by a persistent aspiration for homeownership and a favourable affordability landscape within the city. Moreover, the growing preference among homebuyers for spacious properties further enhances the dynamism of Pune’s real estate sector. Additionally, ongoing infrastructure developments and increasing economic activities consistently bolster the resilience of Pune’s housing market.”

According to the report, on a year-to-date (YTD) basis, the city has recorded a total registration of 91,023 properties, reflecting a modest 1% growth compared to the previous year. However, stamp duty collections have shown a more substantial increase of 6.6%, reaching Rs 3,226 crore. Concurrently, the overall value of registered properties in Pune has exhibited significant growth, surging by 25% year-on-year to reach Rs 69,015 crore during the same period. Homes costing more than Rs 2.5 crore also saw an uptick in actual number of properties registered with 130 residential units being registered in this category in August 2023 as against 65 units in this category registered in August 2022.

Increase in purchase of higher value segment (above Rs 1 crore) in August 2023

Source: IGR Maharashtra

The report highlighted that in August 2023, residential units priced between Rs 25 lakh and Rs 50 lakh were the most sought-after, comprising of 34% of all housing transactions. This ticket size range dominated housing demand during the month. Similarly, in August 2023, properties priced between Rs 50 lakh and Rs 1 crore accounted for 32% of the market share, establishing itself as the second-preferred ticket size.

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 August 2022 to 11% in August 2023, indicating a rising preference for properties in this price range. Homes costing over Rs 2.5 crore saw a rise of over 99% in August 2023 with 130 properties being registered in the month as against 65 units in August 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

Source: IGR Maharashtra

In August 2023, there was a strong demand for apartments within the range of 500 to 800 sqft, constituting close to half of all property transactions registered in the month, accounting for a substantial 47% share, the report mentioned. Apartments with an area under 500 sqft also garnered significant attention, comprising 25% of transactions in August 2023, making it the second most preferred apartment size.

Notably, there was a visible shift towards larger apartments, with those exceeding 800 sqft experiencing an increase in market share from 26% in August 2022 to 29% in August 2023. Moreover, the preference for even larger properties was evident, as the share of apartments sized over 2,000 sqft grew from a mere 1% in August 2022 to a notable 4% in August 2023. This suggests a growing inclination among homebuyers for spacious and larger living spaces.

See also: IGR Maharashtra

Micro markets share for residential property transactions

Source: IGR Maharashtra

See also: Stamp duty and registration charges in Maharashtra in 2023

In August 2023, according to the Knight Frank India report, 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 72%. 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 16% of the total in August 2023. Conversely, North, South and East Pune collectively held a smaller share of residential transactions, comprising 12% of the total in August 2023.

55% of homebuyers in 30- 45 years age group

Source: IGR Maharashtra

Homebuyers in the age group of 30 – 45 years constituted the largest buyer segment, holding a substantial 55% share of the market, shared the Knight Frank India report. Those under the age of 30 accounted for 22% of the market share, while homebuyers in the 45 – 60 years age category represented 17% of the market.

This distribution, according to the report, 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.