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Pune saw an infusion of 20.30 per cent supply in real estate in form of 494 new projects adding 27,008 units into the market for the period December 2012 to June 2013.
Up from 12 per cent rise in supply in the previous six months, said a report.
Of the total stock, 79.5 per cent is currently sold out. Even with substantial supply being added, the market continues to show remarkable stability in terms of sellout – the average unsold stock has remained steady in the range of 21 per cent since June 2011, said Gera Realty Report brought out by Gera Developments.
This report contains information gathered from 2,273 projects having a total of 2,52,054 apartments at various stages of construction across the Pune Metropolitan Region.
"The Pune residential market continues to show resilience amidst a negative economic environment at a macro level. At a local level, the fact that developers have launched projects in more numbers than ever before and the sellout ratio continues to be at the average market sell out indicates that the demand continues from home buyers. The price increases have also tapered off marginally in line with the reduction in inflation over the last 6 months," said Rohit Gera, Managing Director, Gera Developments.
The report also suggested that Pune Realty Market is in an expansion mode with more premium homes being launched. On analyzing the price points across the market, there is a clear trend of larger apartments selling at higher prices. On the other hand, the micro markets have witnessed the maximum increase in prices over the last 24 months.
Gera further added, "Looking forward, we believe that the next 12 months have more risks than the last few years on account of the impending national elections as well as the macro economic situation. We also expect the cost structures for developers to be negatively impacted on account of the Real Estate Regulation legislation that is currently being considered by the Government. The draft in its’ current form will lead to a price rise – this is a fallout of the populist move by the Government to regulate developers and the effect of price rises for the home buyer can be considered collateral damage."
