As the year draws to a close we reflect on the current state of the real estate market here in Pune with indicators therein giving some predictions for the coming year.
Top Trends that Shaped India’s Housing Market in 2022
The year 2022 was a phenomenal year for the real estate sector, particularly the residential segment. Going by housing sales currently and in the first three quarters this year, 2022 will have breached the previous peak of 2014 with all-time high sales across the top 7 cities. Latest ANAROCK data projects total sales in the top 7 cities to exceed 3.6 lakh units in 2022 (in 2014, the previous peak year, 3.43 lakh units were sold.)
Pune’s residential real estate market again proved its strength in 2022 as demand increased convincingly after the pandemic. Even during the lockdown periods of 2020 and 2021, interest in buying homes in Pune remained strong but the true demand potential emerged only once people were free to visit sites again.
The interest rate hikes by the RBI in 2022 did result in demand pulling back to some extent, but this was temporary. Pune’s developers compensated as best as possible with cost-easing measures for customers by partially or fully waiving some of the statutory fees.
Rental demand explodes In Pune mid 2022
With more companies calling their employees back to the office, at the very least in the hybrid model, rental demand rose again after softening considerably during the worst of the pandemic. Rental market demand not only breached pre-pandemic levels but surpassed them, and many housing societies have few or no vacancies. Rentals rose 20-25% against pre-pandemic levels on average, with some of the more popular societies seeing more than 30% increase.
Residential rental markets across the top 7 cities have made a strong comeback after offices and schools reopened in 2022. Analysis of the average monthly rental trends across the leading luxury localities in the top 7 cities reveals that most markets have saw double-digit growth in the last two years, with only a few exceptions.
As per latest ANAROCK data, the average monthly rentals in the prominent luxury micro-markets across the top 7 cities increased anywhere between 8-18% in the last two years. Mumbai’s Worli saw the highest rental growth of 18% in the period – from INR 2 lakh per month in 2020 to INR 2.35 lakh in 2022 for luxury homes of minimum 2,000 sq. ft. area. Anuj Puri, Chairman – ANAROCK Group, says, “Residential rental demand skyrocketed across the top cities in 2022 with schools reopening classrooms and most companies calling employees back to offices. Pent-up rental demand hitting the market has caused a demand-supply mismatch in many areas, resulting in monthly rental hikes. Also, post-Covid tenant preference has tilted towards large-size homes.”
“Most prominent luxury housing markets witnessed double-digit growth in rentals in the last two years,” says Puri. “Pre-Covid, average 2-year luxury rental increases at a given time were largely single-digit, between 5-7%.” The luxury residential market has been on an upswing post the pandemic, with its overall sales share growing to about 14% in H1 2022. Even demand for rental luxury properties is on a high, resulting in growth in average monthly rentals. Pune – the rentals in Koregaon Park rose 14% in this period. Indeed we saw that in the popular branded societies, rental properties did not last a week on the market! After covid times it became super fast times 😊Discover here Top Residential Property for Rent in Pune | Bhatnagars Realtors
The real estate market of Pune is in the blooming stage. Top builders namely: Goel Ganga, Panchshill, Godrej Properties, Kolte Patil Developers, Lodha Group, Pristine Properties, Kumar Properties etc. have their numerous projects that add up to the excellence of Pune. The market is expected to see a rising graph on both residential as well as commercial fronts, so much so that in coming years it will surpass the average of overall residential sales in the last five years which makes it the ideal time for investing in real estate! Here are some of the headlines that are testament to Pune’s sustainable real estate value:
Headline Deals in Pune in 2022 include:
What Does The Pune Real Estate Sector Look Like In 2023?
Positive expectations and upwards momentum have shown to sustain themselves and many experts do believe that it would continue like this in the coming year.
Time tested and popularly believed to be immune to market volatilities; the Indian real estate sector has remained faithful to investor expectations through the many ups and downs in the last couple of years. Positive expectations and upwards momentum have shown to sustain themselves and many experts do believe that it would continue like this in the coming year. Although young investors would be quick to characterize real estate as “slow” or “boring”, it could hardly be the case. Real estate has something for every kind of investor, except the ones that may actually be gamblers more than investors.
The housing market, the driver of growth and sustainer of the entire real estate economy is poised to witness an extremely impressive and potentially its best year in the near future. Residential sales are up by a whopping 51 per cent post the Covid-19 period. According to Reuters, prices are expected to rise nearly 7.5 per cent all over India (4-5 per cent in Mumbai and Delhi, 5.5-6.5 per cent in Chennai and Bengaluru) and a number of other economic indicators also favor a positive uptick.
Demand for flats in smaller projects is likely to reduce further as homebuyers focus on lifestyle aspects rather than the bottom line. The best-selling ticket sizes in 2023 will be from Rs. 70 lakh to 1.5 crores, followed by luxury homes costing Rs. 2 crores and above.
Interestingly, the demand for bigger, good quality homes in Pune from Mumbai citizens increased by over 20% in 2022 as more and more people from the financial capital looked for a better lifestyle. This trend will likely increase in 2023 as MMR’s problems with worsening air quality, urban chaos, and out-of-control housing prices worsen.
Government spending on infrastructure has been exemplary. The positive correlations of infrastructure development with all real estate asset classes is well established.
We believe 2023 will be an exciting year for the real-estate sector in India as the country moves ahead confidently on the path to growth, driven by government spending, private investments in manufacturing, and the geopolitical advantage for India due to the China situation bringing in FDI in manufacturing.
This big picture of the entire Indian economy heading into 2023 displays what can only be translated as positive signs, an 8-9 per cent overall growth, an expected rise in the jobs created, and a bounce back from the recent slump in the stock market. To conclude a growing economy in Pune, a return to the pre-pandemic working state, and the various government initiatives all combined are creating a very conducive environment for the prosperity of the Pune real estate market for 2023 and beyond.
At Bhatnagar’s we specialize at the top end of the market since 1978 in the areas of; Koregaon Park, Boat Club Road, Kalyani Nagar, Sopan Baug, NIBM, Kharadi, Margapatta, Viman Nagar, Nagar Road, Bund Garden, Camp, Mundhwa, Aundh, Baner as well as some specialist areas outside the city for the larger and more exclusive plots. Contact us about our current portfolio of real estate properties, projects and investment opportunities to see how we can serve you going into 2023 and beyond.
Check our website out for hot new listings from our long standing verified network of trusted owners and clients: Top Real Estate Agents in Pune | Bhatnagars Property Realtors
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