Real Estate Sale Records Its Biggest Fall in Last Ten Years in Pune

The real estate sector has felt most of the brunt of the Covid-19 outbreak with sales in Pune plummeting to a decade low in the first half of 2020.

Real Estate consultancy firm Knight Frank in its half yearly report, which was released on Thursday, said 42,855 units in Pune remain unsold at the end of the first half of this year.

Though the real estate sector has possibly felt most of the brunt of the Covid-19 pandemic, people who live in rental accommodations have high aspirations of buying homes.

The lockdown and restriction on movement had led to people deferring site visits and subsequent action. Developers, the report said, are trying to push for online sales to get past this problem.

However, unsold inventory has been increasing since the second half of last year. Sales have plummeted to a decade low with the first half of 2020 recording just 10,049 tenements being sold in the city – a dip of 42 per cent from the 15,445 units sold during the corresponding period last year, the report said. Sales have slumped across the city with south Pune reporting the greatest dip of 67 per cent. Sales of affordable housing (units priced below Rs 50 lakh) have also dipped.

Realtors have now taken to offering direct and indirect benefits to buyers. Weighted average price has seen a 5.4 per cent dip. Developers have reduced quoted prices to some extent and are willing to negotiate. “To keep the market economics in play in the pandemic-hit industry, developers are also offering many indirect offers, such as deferred payment plans, assured rentals, EMI, subvention schemes, PLC waivers, free clubhouse membership and no stamp duty charges,” the report said.

Paramvir Singh Paul, branch director, Pune, Knight Frank India, said, “Manufacturing and auto sectors, which had been important drivers of the Pune economy, are witnessing the impact of the lockdown, impacting the purchase capabilities of end users associated with these segments. Though the IT sector is reportedly stable for now, there, too, a loss of confidence is visible with end users postponing their purchase decisions. To revive sales in the residential market, homebuyers who had been active in the market in the pre-Covid months or had registered for Expression of interests (EOI) during the lockdown are being allured with attractive offers and discounts to convert to sales. But banks have started to go slow on home loan disbursals, which will delay closing of deals.”

(Source: Indian Express)