14 Major Trends that shaped Pune market in 2014
As 2014 draws to an end, CommonFloor has identified 14 major trends that influenced realty market of Pune over the year.
* Pune witnessed the launch of about 230 projects during the year 2014 out of which 29 per cent projects were launched in west region, 23 per cent in east region, followed by 22 per cent in South and only 5 per cent in central part of the city.
* Interestingly, almost half of the new supply in Pune comprised of small-size projects that had less than 100 units each. This could be due to the fact that demand in Pune is largely skewed towards smaller properties at affordable prices. Additionally, the city boasts of having maximum demand for affordable properties.
* Property prices in prominent micro markets in Pune saw decent increase over the year 2014 with only a few localities being, more or less, stable. Despite the general slowdown witnessed across other major cities, Pune realty market stood resilient mainly due to high demand from the IT/ITeS sectors. Add to this, property prices are relatively ‘affordable’ in Pune in contrast to other markets such as MMR and NCR.
* Data indicates that out of the total supply in 2014 in Pune, affordable properties topped the list with 33 per cent, (less than 40 lakhs) followed closely by mid-segment with 30 per cent supply. Interestingly, ultra-luxury segment witnessed more new supply as against the luxury market.
* Data indicates that West Pune has emerged as the front-runner that houses the top localities in the city based on both projects and units launched over the year. However, Wagholi, Baner, Undri, Bavdhan and Balewadi are the top localities based on both unit supply as well as number of projects launched.
* Out of the overall supply in 2014, villas and plots comprised of only about 11 per cent of the total project share and just 5 per cent of the unit supply.
* As per data, villas were very few in number in Pune as compared to the trend seen in other major metros such as Chennai and Bangalore. Mumbai-Pune road topped the list for maximum villa launches in the city over the year. However, being in close proximity to the Pune international airport, Kalyani Nagar and Wagholi also saw few launches in this property-type.
* As per data, Pune witnessed the launch of about 230 new projects in 2014 comprising of nearly 60,000 units. Whereas, about 575 projects were expected to be completed during the same period consisting of 75,000 units. Thus, one can say that the average project-size launched this year is almost double that of projects slated to be completed.
* Maximum absorption of units launched in 2014 was seen towards the peripheral areas as against localities within city limits. Interestingly, this was quite contrary to the conventional trends witnessed in other metros. This can be largely attributed to the stable and steady growth witnessed in Pune over the years.
* Data indicates that the new launched supply in Pune in 2014 was largely dominated by small and mid-sized projects (less than 500 units each) which comprised almost 90 per cent of the total project supply. This validates the fact that the city is expected to witness ample supply of ready-to-move-in property in 2016, followed by 2015.
* Interestingly, as per data, gymnasium is considered a luxury in Pune as against Bangalore where it is seen to be a basic amenity desired by the consumers.
* Out of the Top 10 rental localities in Pune, based on availability, four micro markets are spread across East Pune followed by three in West, two in North and one in South. Most of this demand is driven by the IT/ITeS professionals.
*Based on the number of user-generated queries on CommonFloor’s ‘Forum’ section, Hadapsar has garnered maximum interest. This section gives an opportunity to property buyers / individuals to discuss their real estate concerns with like-minded people on the same platform.
* Other key localities that generated consumer interests were Kharadi and Kalyani Nagar, in that order.
