Chaitanya Joshi
Co-founder, Dream Works Really (i) LLP
HOW DOES REAL ESTATE APPRECIATE ?
Housing prices across the top 8 cities in India continue to rise at a rate of 6% year-over-year due to high demand for housing and quality launches by top developers. Despite an increase in home loan interest rates, real estate in India has overall maintained its momentum, and it is expected that property investment will become more expensive in Tier-II cities as well in the coming years, although the market momentum is expected to continue through 2023. Pune, in particular, has seen significant appreciation and is making a solid comeback post-pandemic.
SALES ARE SOARING
2022 is expected to be the highest-ever year for residential sales in India. The total sales of the first three quarters of CY22 are 16% higher than the sales for the corresponding period in CY21. In the first half of FY23, homes worth INR 1.5 lakh crore (150 billion) were sold in the top 8 cities, compared to the INR 71 thousand crore (7.1 billion) worth of units sold in the same period of the previous fiscal year.
PUNE: LAST QUARTER UPDATES
Housing sales in Pune saw the highest quarterly rise of 13% among the top 8 cities, with 14,000 residential units sold in Q3 2022. Sales numbers increased by 43%. Pune saw the third-highest percentage of new supply among the top 8 cities and was also ranked third in terms of overall absorption.Housing Sales in Pune recorded :-
- Highest Quarterly Rise of 13% amongst the Top 8 Cities
- 14K Residential units sold in Q3 – 2022 w Sales numbers increasing by 43%
- 3r d Highest % of New Supply across Top 8 Cities
- 3r d in terms of overall absorption
MAINTAINING THE MOMENTUM
Consumer sentiment has remained strong as the pandemic has emphasized the importance of owning a home rather than renting one. With the festive period expected to continue until the end of the year, it is likely that sales will continue to increase and unsold inventories will decline. Pune had the lowest unsold inventory of the top 8 cities, at 13%.After two years of uncertainty, 2022 has been relatively stable for the residential market in the top 8 cities. Many developers have launched new projects and offered rebates during the festive season,although it seems that recessionary pressures have impacted the salaried class which is a significant portion of home buyers in the top Indian cities.
