Pune records highest growth in office transaction in 2018,highest in this decade: Knight Frank India

NIKHIL D NANDESHWAR

9 JAN 2019, Pune– Though the sale of residential units in pune has declined but pune has recorded highest growth in office transaction in July-December 2018(H 2, 2018) which is also highest in this decade Knight Frank India, global property consultant in its report released Monday. Residential sale have been risen in Delhi, NCR, Mumbai, Bangalore, Chennai, Hyderabad and Ahrmadabad.

Developers reduced prises to lure customers, implementation of RERA in Maharashtra which is frontrunner in India, improving rules and regulations in real estate has helped to boost the real estate market and recorded growth in office transaction. Impact of demonization and GST is now decreasing. Modifications in GST for real estate to be done soon.

Pradhanmantri Awas Yojana(PMAY), led affordable housing segment which has helped to increase in total launches rise of 157% year-on-year(YoY) in 2018 and was recorded 32648unit. After Mumbai trend of compact homes has caught up in pune as well. Apartment size in pune city shrunk by 26% between 2014-2018.in under construction projects GST acted as a deterrent and it has pushed buyers occupancy certificate (oc) ready projects.

The robust growth story in pune’s office market continued as in 2018,the city witnessed the highest growth in this decade. This was largely on account of a healthy demand from occupiers and the presence of large precommitment transaction. This year also marked a record year in term a of area transacted. In the residential segment, growth was seen in Pradhanmantri Awas Yojana(PMAY) led affordable housing segment and in the compact homes aegments’. Sales grew marginally and GST on under construction continued to act as a detterent for buyers, said Paramvir Singh Paul, Branch Director, Pune, Knight Frank.

Addition in new completion caused the city level vacancy to inch up from 5.8% to 7.2%in real estate market while rental growth has been recorded as 13% YoY in double digit weighted average transacted rentals. Pune witnessed the largest quantum of new supply added in the current decade. Significant proportion of the New supply added in 2018 came in from few projects as a result supply crunch continues.