Pune witnessed a notable shift in the share contribution of new project launches across zones
· The city witnessed stable home sales at 21,670 units
· Homes exceeding INR 10 mn saw a rise in share of sales in H1 2023
Pune (Voice News Service): Knight Frank India in its latest report, India Real Estate: H1 2023 (January to June 2023) cited that new home launches in Pune increased by 22% YoY to 21,234 units in H1 2023. Out of all the markets, Pune stood out as the sole market to achieve substantial double-digit growth in project launches during this period. The city’s emergence as a thriving IT and ITes hub, coupled with the government’s emphasis on infrastructure development, has positioned Pune as a crucial destination for housing.
Residential Market Summary: Top Eight Indian Cities
| Sales | Launches | |||||||
| City | H1 2023 | H1 2022 | % Change (YoY) | % of overall sales | H1 2023 | H1 2022 | % Change (YoY) | % of overall sales |
| Mumbai | 40,798 | 44,200 | -8% | 26.04% | 50,546 | 47,466 | 6% | 29.15% |
| NCR | 30,114 | 29,101 | 3% | 19.22% | 29,738 | 28,726 | 4% | 17.15% |
| Bengaluru | 26,247 | 26,677 | -2% | 16.75% | 23,542 | 21,223 | 11% | 13.57% |
| Pune | 21,670 | 21,797 | -1% | 13.83% | 21,234 | 17,393 | 22% | 12.24% |
| Chennai | 7,150 | 6,951 | 3% | 4.56% | 8,122 | 7,570 | 7% | 4.68% |
| Hyderabad | 15,355 | 14,693 | 5% | 9.80% | 22,851 | 21,356 | 7% | 13.18 |
| Kolkata | 7,324 | 7,090 | 3% | 4.67% | 6,776 | 6,686 | 1% | 3.90% |
| Ahmedabad | 7,982 | 8,197 | -3% | 5.09% | 10,556 | 10,385 | 2% | 6.08% |
| All India | 1,56,640 | 158,705 | -1.30% | 1,73,365 | 160,806 | 7.81% | ||
Source: Knight Frank India
Residential sales remained stable with total sales of 21,670 units, experiencing a slight decline of 0.6% year-on-year. Despite facing various challenges, the market demonstrated resilience. Properties with ticket size exceeding INR 10 million saw a rise in share, increasing from 9% in H1 2022 to 12% in H1 2023. This indicates a growing demand for high-value properties in the market during the given period. Sale of properties with ticket sizes ranging from INR 5 – 10 mn also experienced an increase in share, rising from 41% in H1 2022 to 46% in H1 2023. While sales of properties with ticket sizes below INR 5 mn witnessed a decline in share, decreasing from 50% in H1 2022 to 42% in H1 2023. This shift in share can be attributed to an overall increase in the value mix and prices of properties.
Pune Ticket Size Split Comparison of Sales During H1 2022 And H1 2023
Source: Knight Frank India
Residential Price Movement
| City | H1 2023(INR/ sq ft/ month) | % change12 months | % Change6-month |
| Mumbai | 7593 | 6% | 3% |
| NCR | 4638 | 5% | 3% |
| Bengaluru | 5643 | 5% | 2% |
| Pune | 4385 | 3% | 2% |
| Chennai | 4350 | 3% | 1% |
| Hyderabad | 5410 | 10% | 9% |
| Kolkata | 3428 | 2% | 2% |
| Ahmedabad | 3007 | 4% | 4% |
Source: Knight Frank India
The city’s residential market witnessed a notable shift in the share of new project launches across different zones in Pune. The Central, Western, and Northern Zones experienced significant increases, accounting for 20%, 26%, and 10% of the total launches, respectively. On the other hand, the share contribution of the South and East Zones contracted, comprising 20% and 24% of the total launches, respectively. The quarter-to-sell (QTS) metric, which measures the time taken to sell a property, decreased from 4.9 quarters in H1 2022 to 4.3 quarters in H1 2023. This decrease signifies the strength of market demand.
From the aspect of the micro-market split, the sales volumes were predominantly concentrated in the South, East, and West markets, accounting for significant shares. The South market held the largest share with 31% contribution to the total sales volume, followed by the East market with 23%, and the West market with 28%. These regions emerged as the key areas where substantial residential property transactions took place, indicating high demand and market activity in those zones.
Vilas P Menon, National Director Occupier Services, and Branch Head – Pune, Knight Frank India said, “Pune’s residential market witnessed a growing trend of returning to office-based work, residential properties located near key employment hubs such as Hinjewadi and Baner in the West Zone are anticipated to experience a surge in sales momentum. These areas, known for their proximity to major workplaces, are expected to attract homebuyers seeking convenient access to their workplaces, leading to increased demand and sales activity. The city’s emergence as a thriving IT and ITeS hub, coupled with the government’s emphasis on infrastructure development, has positioned Pune as a crucial destination for housing.”
Pune office space update: H1 2023 (January – June 2023)
In terms of office market performance, Pune witnessed a 3% increase in rental value while transactions in Pune amounted to 1.5 million square feet, with micro markets such as Secondary Business District (SBD) East, Secondary Business District (SBD) West, and Peripheral Business District (PBD) West driving demand and accounting for 85% of the transactions in H1 2023. Despite the temporary setback, Pune remains a major hub for IT and ITeS (IT-enabled Services) companies, and there is a strong pipeline of new office projects. As global economy continues to recover, the demand for office space in Pune is expected to increase.
Market Summary: Top Eight Indian Cities
| Office Transactions | New Completions | |||||
| City | H1 2023 Mn Sq Ft | H1 2022Mn Sq Ft | % Change (YoY) | H1 2023 Mn Sq Ft | H1 2022 Mn Sq Ft | % Change (YoY) |
| Bengaluru | 7.0 | 7.7 | -10% | 6.4 | 5.8 | 10% |
| NCR | 5.1 | 4.1 | 24% | 4.0 | 2.5 | 58% |
| Chennai | 4.5 | 2.2 | 107% | 2.3 | 3.0 | -26% |
| Mumbai | 3.2 | 3.0 | 9% | 1.4 | 1.0 | 37% |
| Hyderabad | 2.9 | 3.2 | -8% | 1.3 | 5.3 | -76% |
| Pune | 2.3 | 3.3 | -30% | 2.6 | 5.0 | -49% |
| Kolkata | 0.6 | 0.6 | -3% | – | 0.2 | -100% |
| Ahmedabad | 0.5 | 1.3 | -59% | 0.3 | 1.3 | |
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