Author name: dreamspersqftmagazine

  There is no denying the fact that Pune’s real estate market has been on the rise for the past four years. This upward trajectory has continued despite the pandemic, almost as if the pandemic never existed in the city. The city’s iconic infrastructure in the IT sector is closely interwoven with its real estate success. A healthy balance between supply and demand, often a recipe for a successful project, has clearly been working wonders for developers in Pune. But this year’s situation, unlike any other before it, caught everyone by surprise. Although much has been discussed about the affordable segment and its scalability, the average ticket size has risen to INR 59 lakhs, indicating that Pune now has wealthier home buyers. Looking back at the pandemic’s tumultuous past, the achievements in 2021 were not a big leap, but the momentum continued to improve, and CY 2022 ended with the impressive figure of INR 49,794 crore, the total value of primary units sold from January 2022 to December 2022. During the same period, a whopping 84,493 housing units were sold, representing a 26% increase over CY’19. In CY 2021, Pune sold 71,394 primary housing units, totaling a value of INR 37,520 crore. There was a 62% surge in the value of units sold compared to CY 2019. Pune sold primary housing units worth INR 67,026 crore in CY19, a time when COVID-19 did not exist. The affordable segment played a crucial role in this success, with the contribution of sales of units priced above INR 45 lakh increasing by 94% from CY 2019 to CY 2023. However, soaring sales charts are not solely due to the affordable segment. The sale of units priced above INR 1 crore saw a massive 151% increase in CY 22 compared to CY 19. Despite the RBI tweaking REPO rates six times in a row, housing affordability remains high. Pune North East was the most promising macromarket in Pune, selling 15,974 primary housing units, 52% more than in CY’19. The total value of units sold was INR 10,881 Cr in CY 22, up by 78%. Pune North West was not a new entrant in the charts and is popularly known as the most consistent macromarket in Pune. The value of units sold grew handsomely by 74% in CY 22 over CY 19, with the number of units sold also increasing by 38% over the pre-pandemic figure. Overall, Pune has a good tailwind to keep the momentum going for at least the next couple of years, with the saga expected to continue at the same pace. However, our focus should be on micro-markets like Tathwade, Punawale, and Mahalunge in the North West; Kharadi and Mundhwa in the North East; and Mohammadwadi and Hadapsar in the South East, where the average inventory overhang of seven quarters is accurately forecasted based on the current sales velocity captured in our databases. In terms of commercial office supply, Pune is just 30 msf away from achieving a golden 100 msf number in Grade A/A+ office stock (with current vacancy levels at 15.8%). Pune has already embarked on the path towards the goal, and with residential sales accelerating to never-seen-before levels, the experts will undoubtedly be on the edge of their seats for the next three years.   Mumbai Residential Market:   The year 2022 has been phenomenal for the MMR region, witnessing a record sale of housing units. With 130,259 primary housing units sold, the region peaked in sensational sales velocity. Despite being riddled with a lot of hostile elements for real estate, such as a hike in interest rates from banks, a surge in the prices of construction materials, an overshadowing recession on a global canvas, and other geo-political issues, the MMR region outperformed in every aspect. Citing this unforeseen demand, developers geared up and delivered a huge number of units to home buyers. Battling all the odds, the sale number showed great growth, driving healthy price appreciation in almost every macro-market. The majority of the launch was contributed by the western territories of the region. Here are some of the key takeaways: Housing sales witnessed a 2% decline in CY’22 compared to CY’21. But Q4 CY’22 ended on a good note, with a 21% increase in sales compared to CY’21. Vasai-Virar gets a chance to rule the top position this year, with a 24% increase in sales in CY’22 compared to CY’21, followed by Greater Thane with 23% and Central Suburbs with 18% growth, respectively. With a healthy 35% increase in the launch number of MMR this year over CY’21, Thane City at an enormous 251%, Mira Bhayandar at 59%, Panvel at 32%, and Western Suburbs at 28% concluded the CY’22 launch story when compared to CY’21. Overall, an 8% spike doesn’t seem like much when unsold inventories are being discussed, thanks to evident supply in the region, but the Eastern suburbs, Western suburbs, and Central suburbs faced a 16%, 15%, and 12% surge in the unsold inventory number, respectively. Thane City has been exceptional since unsold numbers did not budge this year. Interestingly, prices have been on an upwards trajectory in MMR, with the region clocking a 4% rise vs. CY Q4 21 prices. Vasai-Virar, Mira Bhayandar, Thane City, and Eastern Suburbs have contributed largely to this increase.   Author Name: Mr. Abhishek Kiran Gupta Business Name: CRE Matrix Designation: CEO, CRE Matrix Email: [email protected]

Navigating the Challenges of Real Estate: An Entrepreneur’s Story   All my life, growing up, I had witnessed most of my friends and family working in Real Estate in some capacity or the other. Whether it was developing, contracting or broking, I had seen it all around me since a very young age. I never had any inclination to enter this field, but life surely had other plans.  Three years ago, by sheer luck, I made my first transaction of leasing a shop, and ever since then, there has been no looking back. When I started in Real Estate, I did not realize how challenging this line of work could be for any young individual. However, throughout my journey, I also came across some very inspiring people who guided me and helped me better understand the nuances of this field. My interactions with my senior colleagues, as well as my friends and family, have taught me how to take a transaction forward with integrity while having no discrepancies with our Clients. For me, any transaction is more than a sale. It is not only about understanding the Client’s requirements, but also catering to their pace, mindset, and providing them with the best that the market can offer. Of course, I have had my share of highs and lows within this field; however, only through being in this line of work, I have learned how to be extremely patient and also when to reach out to my mentors for guidance. Now I know from my past experiences that both highs and lows are temporary, so I believe in living in the present and giving my best every day.  The pandemic changed the course of all our lives, including the nature of our work. During the pandemic, even though I was working on certain transactions, I soon realized that the market during and post-pandemic was going to take a drastic shift. Within two years, the entire course of the market had changed and as we resumed work post-pandemic, the market we all were catering to no longer existed.  Hence, I decided to launch Pratham Housing Investments, a one-stop solution for all current Real Estate requirements. At PHI, we cater to acquiring and managing property portfolios. We have done JV Transactions and outright Land Transactions where we have been by the Client’s side for over a year through the changing terms and policies made by the Government.   Nevertheless, all our past transactions have been a smooth flow throughout, and our Clients have had the utmost satisfaction after the deals concluded. We not only have got our transaction fees but also have been awarded the Projects for Sole Selling, and that’s one example of our foundation of relationships with our Clients.   Author details:   Mr. Yash Bhatia  Founder of Pratham Housing Investments  www.prathamhousing.com