Knight Frank India, in its latest assessment noted that Pune district saw property sale registration of 12,166 units in January 2023, contributing over INR 441 Crs to the state revenues. Primary and secondary residential deals accounted for 73% of properties registered in January 2023. 500-800 sq ft of apartment area emerged as the preferred product size while INR 25-50 lakh as the preferred ticket size by homebuyers for residential properties in Pune district.
Despite strong headwinds, 2022 recorded robust sales momentum, witnessing over 1.39 lakh property sales registrations in Pune district. The total property value transacted stood at INR 85,246 crs leading the state exchequer to collect INR 4,843 Cr in revenue from stamp duty and registration fees. To combat the inflation pressures Reserve Bank of India opted for multiple Repo rate hikes over the year, raising the rate from 4% i.e lowest ever to 6.50% resulting in a 250 BPS rate hike. This has led to a rise in mortgage rates affecting the homebuyer’s purchasing capacity by impacting their eligibility for a home loan. However, a shift in consumer sentiment towards home ownership has emerged as a key driver for continued property purchases while selectively conceding on other factors like area, location, grade of developer etc. The market’s resilience is also demonstrated through the continued home purchases despite a rise in stamp duty rates of 1% on account of the metro cess.
2023 has continued the strong momentum with January 2023 recording property registrations over 12,000 units, a 34% YoY rise. The property value transacted also records a 42% YoY rise leading to INR 7,736 Cr worth of properties transacted in January 2023 as compared to INR 5,444 Cr worth properties transacted in January 2022. Government revenue collection also recorded substantial growth recording a 64% YoY jump in January 2023 on account of rise in stamp duty and property prices amongst other factors. However sequential moderation in sales was recorded in January 2023, with property registrations recording a 9% MoM drop. Residential properties hold a major share of property transactions in January 2023, 73% of property registered are residential deals.
Central Pune covering Haveli Taluka, Pune Municipal corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) holding the largest share of residential transactions recorded a YoY jump in share for January from 79% in January 2022 to 80% in January 2023.
West Pune that accounts to 12% of transactions in January 2023 holds the second biggest share covering areas like Mawal, Mulshi, Velhe. North, South and East hold a smaller share of residential transactions accounting to 8% in January 2023.