Published at: December 29, 2022
While many industries were hit due to the extended lockdown following the COVID-19 pandemic, the real estate sector experienced a drop in demand and prices too. This drop was noticeable in cities like Pune with a large migrant population and dependence on small businesses. However, 2022 has been a good year for the sector. With pent-up demand for homes and offices, Pune has witnessed a steady growth in demand this year. Despite the RBI increasing REPO rates regularly and home loan rates rising, people have displayed an eagerness to invest in property in Pune.
Pune Real Estate in 2022
As we head towards the end of the year, we take a look at how the year has been for real estate in Pune. According to a report released by Cushman & Wakefield (Marketbeat), in Q3 2022, the city experienced a surge in demand for properties across all segments.
Residential Market
- Pune has been witnessing a steady quantum of project launches from developers of national repute and those with a strong execution track record.
- In Q3, 9,133 residential units were launched highlighting the strong momentum and developer confidence in the residential market
- A 55% Y-o-Y growth as of September 30, 2022
- The mid-segment has dominated new project launches contributing to around 80%
Office Space
- In terms of Gross Leasing Value in the office space segment, Pune witnessed a major increase of around 121% Y-o-Y
- The most active sectors were Flexible workspace (33%), IT-BPM (27%), and Engineering & Manufacturing (24%)
- Healthy leasing in Q3 2022 with limited new supply in the market has induced an increase of 1-2% in the overall city rentals
- Prime sub-markets such as SBD East and SBD West have witnessed rental improvements backed by strong demand
Retail Space
- Pune’s malls recorded around 140,000 square feet of leasing in the third quarter of 2022, a jump of 43% on a Q-o-Q basis and an eight times increase as compared to the same period last year
- Around 100,000 square feet leasing was recorded across prominent main streets in the quarter
- In the absence of new supply, Pune’s mall inventory remained unchanged at 6.6 million square feet
- Main streets like Baner-Balewadi-Aundh and Koregaon Park witnessed a 1-2% Q-o-Q growth in rents, largely attributable to the limited supply of space in these markets. Rentals in such main streets are expected to remain range bound in the upcoming quarters
Factors that impact real estate prices in Pune
- Employment opportunities
- Growing suburbs
- Manufacturing hub for automobile, engineering, and electronics companies
- Easy accessibility via an efficient transport system
- An Assortment Of Projects Across All Categories
In Pune, Sankla Buildcoon has established itself as a reliable name in real estate developments. Sankla’s residential projects include SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, AVANI at Mohammadwadi, SATYAM RAJYOG at Dhanori, and SATYAM PRIMA at Manjri-Solapur. If you are looking for a commercial property, then you can look at SAYAM BUSINESS COURT at Manjari, PS ANGAN at Magarpatta Road, and JAYMALA BUSINESS COURT at Manjari.
