- Pune records the highest GCC focussed area transacted volume in the country
Pune (Voice news service):- According to the latest report from Knight Frank India, titled ‘India Real Estate Q3 2023’, Pune observed the second highest office volume transactions at 3.0 mn sq ft, accounting 19% of the occupier activity in the country (across the leading eight cities in India). The volume also marked the highest quarterly transacted volumes in the city since 2018. New office completions in Pune were recorded at 0.4 mn sq ft.
The average transacted rent of the city was recorded at INR 72.8 sq ft/month translating into a YoY rent growth of 2% YOY during Q3 2023.
During Q3 2023 Pune market witnessed major leasing activity by Global Capabilities Centres capturing 81% of the area transacted. In India, Pune accounted to 34% of the GCC area transacted area in the country. India facing business and Flex office spaces constituted 10% and 8% of the area transacted, respectively.
| End-User Licensee/Buyer | GCC | India-Facing Business | Flex | Total |
| Area transacted in mn sq ft | 2.4 | 0.3 | 0.2 | 3.0 |
Source: Knight Frank India
The report cited that the top eight markets of Indiahas recorded office transactions of 16.1 million square feet (mn sq ft) recording a growth of 17% YoY during Q3 2023. The elevated demand in the Indian office market reflects the confidence of occupiers as India continues to see economic stability despite global uncertainties. New office completions in Q3 2023 were recorded at 11.5 mn sq ft across the leading eight cities of India.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The relative strength of the Indian economy continues to attract global corporate interest and is reflected in the recovering demand in the Indian office space market. The increasing incidence of GCCs being set up in the current quarter also points toward greater occupier commitment to the overall operational and business environment that India offers. Occupier demand has trended up well over the year and looks to be on course to exceed levels seen in the previous year. It is the broader economic forces of inflation and GDP growth that will take centre-stage in shaping the fortunes Indian office market in the next few month”.
Pune records residential sales volume of 13,079 units in Q3 2023: Knight Frank India
Pune witnessed a total of residential sales volume of 13,079 units with a YoY growth of 20%, whereas 10,568 units were launched in the period with an annual growth of 42% YoY. The average weighted residential price witnessed an increase of 5%YoY during Q3 2023 with a value of INR 4,463 sq ft
During Q3 2023, Pune accounted for the second highest sales volume in mid housing across the leading eight cities in the country. 47% of the city’s sales occurred in the INR 5 mn – 10 mn segment. The ticket size of below 5mn was 37% while that of above 10mn was 18%.
Ticket-size split of sales
| Ticket Size Categories | <5 mn | 5-10 mn | 10 mn> | Total |
| Q3 2023 | 4,688 | 6,086 | 2,306 | 13,079 |
| YoY % change | -6% | 24% | 132% | 20% |
Source: Knight Frank India
Knight Frank India cited that the leading eight residential markets in India continued to show strong growth momentum. During Q3 2023 (July – September 2023), Indian markets saw a surge in demand with sales of 82,612 residential units recording a growth of 12% YoY. In volume terms Q3 2023 recorded a six-year high in quarterly sales volumes.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, remarked, “Residential sales continue to gain momentum, reaching multi-year highs. Although inventory levels have seen a significant rise due to developers launching projects to cater to this robust demand, the overall market health is improving, with strong sales velocity. Elevated interest rates and prices have had little impact on higher-ticket-size homebuyers, but the affordable segment has been severely affected, necessitating further interventions to stimulate demand and enhance development viability.”
Shishir further added, “While we celebrate overall residential market growth, concerns arise, notably in the affordable segment, which has seen a steady decline in Q3 2023. Economic turbulence in recent quarters hit lower-income consumers, affecting segments like rural consumption and lower end of passenger vehicles sales. This decline in affordable housing segment is worrisome because it’s been the largest buying segment, crucial for long-term industry growth. Prolonged slowdown could harm the real estate sector in the long-term. Therefore, stakeholders must reconsider strategies to revive the affordable segment and maintain its momentum.”
