The Gera Pune Residential Realty Report for July-December 2019 released today stated that the realty market in Pune is in consolidation mode.
In 2017, it took 40 projects with the highest sales-per-project to cumulatively sell 10,000 homes. By 2019, that number has dropped to 17 projects. Developers with a track record are getting rewarded with sales driven by high consumer demand, the report said.
The share in sales of the Top 20 Developers has gotten stronger especially post-RERA. The offtake is at a four-year high (94,383 units), an increase of 15 per cent over the last 12 months.
Affordability Index shows the highest affordability compared to the last eight years. Trends in affordability over time indicate that affordability is at an all-time high as on December 2019.
According to the report, inventory for sale has also risen after falling since June 2017 indicating supply outstripping demand.
“This suggests that the market has accelerated in the last six months in terms of construction activity. From a peak inventory at 107,402 apartments in June 2016 it has dropped to 89,887 apartments now. Inventory available for sale grew by about12 per cent as well over June 2019 (when it was 80,062 units). However, inventory levels are down by 16 per cent from 2016 peak” the report added.
Since the implementation of RERA, the number of live projects in Pune has reduced from 3,733 projects in June 2017 to 3,490 in December 2019. The total number of projects on hold (where work has commenced and presently stopped) has reached 249. These account for 40,023 apartments and based on our prior data, 23,466 apartments are sold. This means approximately about 24,000 families are stuck with incomplete projects.
(Source: Hindu BusinessLine)
