In the dynamic landscape of India’s real estate sector, Mumbai and Pune emerge as the torchbearers of growth and demand. Together, these western cities account for a substantial majority of the new supply and sales, showcasing robust double-digit year-over-year growth. As we delve deeper into the specifics within these cities, emerging micro-markets and discernible buyer preferences come to the fore, offering insights into the trajectory of these bustling property markets.
Mumbai and Pune: Powerhouses of India’s property market
The first nine months of 2023 witnessed Mumbai and Pune capturing a staggering 55 per cent of the overall new supply and sales among India’s top cities. Both cities recorded impressive year-over-year growth, with Mumbai seeing a 19 per cent surge and Pune a remarkable 23 per cent leap in sales during January-September 2023. Moreover, Mumbai experienced a notable 26 per cent increase in new supply, while Pune’s growth soared to an astounding 99 per cent during the same period.
Pune’s growth is particularly fueled by its expanding IT sector, with major organizations like Infosys driving demand as they mandate employees to return to office spaces. With demand already nearing 90 per cent of 2022 levels, the outlook for Mumbai and Pune remains bullish, poised for continued growth in the coming quarters.
Emerging Micro-Markets in Mumbai and Pune
In Mumbai, peripheral micro-markets such as Thane, Navi Mumbai, and Mira Road have emerged as hotspots for both homebuyers and developers. Thane West, Dombivli, and Panvel stand out with the highest number of new launches and sales, catering to varying segments of the market, from low-to-mid to high-end properties.
Similarly, in Pune, micro-markets along Nagar Road, the western region, and Pimpri Chinchwad are witnessing heightened residential activity. Areas like Hinjewadi, Charholi Budruk, Kharadi, and Ravet are experiencing significant demand, driven by proximity to IT hubs and the Mumbai-Pune highway, coupled with relatively affordable capital values compared to central Pune.
Buyer Preferences
In Mumbai, where real estate prices tend to be higher, demand and supply are concentrated in the higher ticket sizes. However, peripheral areas like Thane, Panvel, and Dombivli offer homes in the low-to-mid segment, catering to a broader spectrum of buyers. Thane, in particular, sees a majority of transactions in the INR 1-3 crore range.
In Pune, while the preferred ticket size historically remained below INR 75 lakh, there’s a noticeable shift towards premium properties priced above INR 1 crore. The share of properties sold in this range has been steadily increasing, reaching nearly 16 per cent in recent times. Micro-markets like Kharadi, Baner, and Kothrud are witnessing heightened demand in this price bracket, driven by amenities and lifestyle preferences of homebuyers.
The property markets of Mumbai and Pune continue to showcase resilience and growth, driven by a combination of factors including economic expansion, urbanization, and evolving buyer preferences. As these cities embrace emerging micro-markets and cater to diverse price segments, the future outlook remains promising, with sustained momentum expected in the quarters ahead.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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