Residential launches in Pune hit a new low since 2010 – Knight Frank India

Pune: Knight Frank India today launched the seventh edition of its flagship half yearly report – India Real Estate. It presents a comprehensive analysis of the residential and office market performance of Pune for the period January – June 2017 (H1 2017).
Pune Residential Market Trend:
Speaking about the findings, Shantanu Mazumder, Director – Punesaid, “In H1 2017, there was a dip in launches by 9% whereas sales increased by 11% compared to H1 2016. The first two months of H1 2017 saw consumers and the industry as a whole grapple with the aftermath of demonetisation. However, with Maharashtra taking the lead in rolling out the guidelines for the Real Estate (Regulation & Development) Act 2016 as well as putting the regulator in place on May 1, 2017, projects whether new or on-going have been barred till July 31, 2017 from advertising, marketing orselling without registration with RERA. With developers re-directing efforts from sales to RERA compliance, pace of launches was lower in this period.Sales has seen an upswing on the back of the government’s focused attention to the affordable housing segment,home loans being at their lowest since 2009 and developers offering freebies and discounts to attract demand.
In office, transactions declined by 12% in H1 2017 YoY due to headwinds faced by IT industry and shortage of relevant office supply for the city’s largest occupier segment. Though new completions were higher by 35%, they were mostly in small projects less than 1 lakh sqft and not relevant for IT sector. Vacancy levels too have dropped each year to 7.9% from its peak of 28% in 2009.With the improving occupancy levelin the market, the office rents in Punehave been on an ascent for more thanfive yearswith H1 2017 recording an increase of 7% YoY. While both the IT/ITeS and BFSI sectors have taken a plunge in H1 2017, other services sector led by co-working space providershas jumped to 22%.”