Housing sales fell 23 per cent in Pune and new supply declined 55 per cent during the January-June 2020 period, as the coronavirus-induced lockdown hampered business activities, according to a report by realty player Gera Developments. The Gera Pune Residential Realty report, being released bi-annually since 2011, is aimed at garnering insights on demand-supply and prices of Pune housing market.
Housing sales declined to 38,018 units during January-June period of this year from 49,273 units in the corresponding period of the previous year, Gera Developments Managing Director Rohit Gera told reporters through video conference.
New launches fell to 21,072 units from 46,910 units during the period under review.
In the report, total 3,076 housing projects, comprising 3.11 lakh units, have been covered, Gera said.
Out of the total housing units, over 75,000 units are still available for sales. Only 8,369 unsold units are ready-to-move-in apartments and the rest are under construction.
When asked about the outlook for the second half, Gera said the demand will rise during the festival season as prospective buyers are returning to the market.
Still, he said, housing sales will be 15-20 per cent lower this year compared to 2019.
On prices, Gera said there is little room for any price reduction by developers.
He said the construction cost is bound to increase as developers will have to pay 20-25 per cent extra to bring labourers back on their sites.
During the lockdown, Gera said developers were able to defer launches of projects, thereby deferring large financial commitments on account of project construction and launch expenses.
"The disproportionate reduction of new launches versus sales has led to a depletion of the overall inventory in the market which is a good sign. The inventory for sale is now at a 5-year low at around 75,000 homes," he said.
Gera Developments is building various residential and commercial projects in Pune, Goa and Bengaluru.