Pune’s Residential Market Ripe for Investment, Office Market Continues to Break Record!
Knight Frank India launched the fourth edition of its flagship half yearly report - India Real Estate on 28th Jan 2016. It presents a comprehensive analysis of the residential market of Pune for the period between July–Dec 2015 (H2 2015).
· Homebuyers cheer up as consistent fall in price growth has provided the right opportunity for investment
· Budget segment witnessing slower homebuyer interest, while the mid-segment has caught buyers attention in Pune.
· The majority of new launches are focussed in peripheral areas such as Wagholi, Dhanori, Hinjewadi, Pisoli and Pirangut amongst others.
· South Pune has witnessed phenomenal recovery in terms of reduction of inventory.
· Developer sentiment builds up due to consistent growth in sales volume, new launches expected to 9% jump during H1 2016
Pune Residential Market Trend:
· Office market witnessed best absorption in last 5 years with 5 mn sq ft being absorbed
· Constraint observed in new completions pushing the vacancy record low at 11%
· Strong demand and tepid supply pushes rental values to an all-time high to `56/sq ft/month
Pune Office Market Trend:
Speaking on the findings, Shantanu Mazumdar, Director- Pune said, “As anticipated, steady sales volume and stagnant price growth provided the ideal opportunity for homebuyers during H2 2015 in Pune. Majority of the new launches have happened at a price range similar to that of H1 2015, which in turn allowed the sales volume to climb up by 4% during 2015. The maximum sales traction is being witnessed in the mid-segment with premium and budget segments lagging behind during H2 2015. South Pune witnessed a phenomenal recovery in the last two years from being one of the worst performing markets in H1 2014, to one of the best performing markets in H2 2015.
The office market segment continues to break new records, as Pune outstrip both in launches and absorption for the fourth straight year. Also, 2015 recorded absorption of 5.2 mn sq ft, which was 15% higher than 4.5 mn sq ft during 2014. Since demand continues to surpass demand, rentals are on a steady rise close to 50% growth since 2012. This trend has turned the market in favour of landlords, who are asking for higher rents from tenants with each passing quarter”.