Pune district reported 14,309 property registrations in March, 0.17 percent more than in February 2023, according to data from the Maharashtra government’s Department of Registrations and Stamps (IGR).
However, registrations plummeted 33 percent year-on-year, from 21,389 in March 2022, which recorded a surge owing to the increase in stamp duty from April 2022.
“The rush in property registrations before the stamp duty hike in April 2022, following a two-year concession period, resulted in a rise in registrations of 21,389 properties and a corresponding increase in stamp duty revenue of Rs 690 crore in March 2022. In this comparison, it represents a 33.1 percent YoY decline in registrations in March 2023,” said Knight Frank India, a real estate consultancy firm, in a report.
According to the report, the 14,309 registrations in March 2023 contributed Rs 621 crore to state revenues. Primary and secondary residential deals accounted for 76 percent of properties registered in March 2023.
Further, apartments costing Rs 25 - 50 lakh dominated housing demand in March 2023, accounting for 38 percent of transactions. However the share dipped from 39 percent in March 2022.
Properties worth Rs 50 lakh – Rs 1 crore accounted for 35 percent of the market share in March 2023, making it the second preferred ticket size.
Also read: Pune recorded 12,166 property registrations in January 2023, 9% lower than in December 2022: Data
Apartments in demand
Demand for apartments with an area of 500 – 800 sq ft accounted for half the property transactions in March 2023. The share increased from 48 percent in March 2022 to 50 percent in March 2023.
Homes under 500 sq ft accounted for 23 percent of transactions in March 2023, becoming the second-most-preferred apartment size. The share of over 800 sq ft apartment area increased from 25 percent in March 2022 to 27 percent in March 2023.
In March 2023, demand for apartments under 800 sq ft dominated the North and South Pune market. The market for over 2,000 sq ft carpet area is largely in east and west Pune.
“The overall figures for March 2023 for Pune look strong considering the other months in the last fiscal. The Pune market is having strong growth in the mid-segment and luxury market whereas traditionally it was the affordable market,” said Vidip Jatia, Managing Director of Supreme Holdings and Hospitality (India) Ltd, which develops properties under the Belmac banner in Pune.
Jatia added, “In our case, we launched Belmac Residences in the New Kalyani Nagar area of Pune in 2016, with community-centric amenities, and suddenly after Covid-19, enquiries for our apartments increased because we were making bigger and more spacious apartments.”
“For example, our 2 BHK is of 1,000 sqft carpet and 3 BHK is 1,200 sqft carpet, and in Pune, developers were going towards Mumbai style sizes. However, the pandemic brought them back to the drawing board. For us, this shift to owning a house, and a spacious one, helped. We are today 90 percent sold out of the 1 million sqft that we proposed in a six-acre township project for Pune," Jatia further added.
Also read: Property registration in Mumbai jumps 51% MoM in March to over 15,000 units
Shishir Baijal, Chairman and Managing Director, Knight Frank India said that the Pune residential market continues to show strength despite higher home loan interest rate and property prices as end users continue to dominate the market on the back of their desire for home ownership and supportive affordability.
“The pause in the policy repo rate hike cycle will further lend comfort to homebuyers in this city, where the majority of sales happen under the Rs 50 lakh value segment. The ongoing infrastructural improvements and abundance of job possibilities also remain supportive of the city’s housing market,” said Baijal.
Areas in demand
Central Pune, comprising Haveli Taluka, Pune Municipal Corporation (PMC), and the Pimpri Chinchwad Municipal Corporation (PCMC), continued to have the highest percentage of residential transactions, with a total share of 80 percent in March 2023, which was largely unchanged from the same period last year.
West Pune accounted for 14 percent of transactions in March 2023, holding the second-largest share, followed by north, south, and east, which accounted for 6 percent of the total share in March 2023.
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