Pune witnesses 10% YoY surge in annual property registrations, reaching 152,323 units in 2023: Knight Frank India

Pune, January 17, 2023: Knight Frank India, in its latest assessment noted that property registrations in Pune for the period of January to December 2023 reached a total of 152,323 marking a 9.6% increase compared to the previous peak year. The total amount collected in stamp duty for 2023 was INR 5,352 crores, exhibiting a 10.5% year-on-year (YoY) increase. In December 2023, 14,725 property sales were registered contributing INR 560 crores to the State Government’s revenue. While registrations witnessed a 10% rise YoY, revenue from stamp duty increased by 12% compared to same time the previous year. Homebuyers in Pune continue to display confidence in the property market due to supportive affordability and positive sentiment towards home ownership. This confidence has led to a notable upsurge in property registrations within Pune.

Table: Property registrations and Stamp duty collection

Table: Property registrations and Stamp duty collection

Increase in purchase of Higher Value Segment (above INR 1 crore) in December 2023

In December 2023, residential units priced between INR 50 lakhs and INR 1 crore were the most sought-after, comprising 34% of all housing transactions. Similarly, the share of properties priced between INR 25 lakhs and INR 50 lakhs stood at 31% of the market share, a close second to the INR 50 lakhs and INR 1 crore category.

Interestingly, the higher value segment, comprising of properties priced at INR 1 crore and above, experienced growth in market share. This segment’s share increased from 9% in December 2022 to 12% in December 2023, indicating a rising buyer preference for properties in this price range.

Share of ticket size for residential property transactions

Higher demand for larger apartments sustains.

In December 2023, apartments within the range of 500 to 800 sq ft, had a substantial 40% share. Apartments with an area under 500 sq ft also garnered significant attention, comprising 35% of transactions in December 2023, making it the second most preferred apartment size.

Notably, there was a significant shift towards larger apartments, with those exceeding 1000 sq ft experiencing an increase in market share from 11% in December 2022 to 14% in December 2023.

Share of area for residential property transactions

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Pune’s real estate market’s growth underscores the strong desire for homeownership and the appealing affordability factor within the city. This trend is evident in the notable surge in both property registrations and stamp duty collections throughout 2023. The growing preference for larger properties highlights the dynamism of Pune’s realty market. With ongoing enhancements in infrastructure and a rise in economic activity, the residential market in Pune is solidifying its sturdy base, paving the way for a flourishing real estate sector.”

Central Pune accounted for 75% of total residential transactions in December 2023

In December 2023, Central Pune, which encompasses Haveli Taluka, Pune Municipal Corporation (PMC), and Pimpri Chinchwad Municipal Corporation (PCMC), continued to dominate residential transactions, maintaining its significant share at 75%. While dominant, this share has declined somewhat compared to the same period in the previous year as new supplies in the rest of the city increasingly meets the contemporary needs of the Pune homebuyer. West Pune, covering regions like Mawal, Mulshi, and Velhe, held the second-largest share of residential transactions, accounting for 15% of the total in December 2023.

Conversely, North, South, and East Pune collectively held a smaller share of residential transactions, comprising 11% of the total in December 2023.

Share of micro markets for residential property transactions

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India

52% of homebuyers in 30- 45 years age group

Homebuyers in the age group of 30 – 45 years constituted the largest buyer segment, holding a substantial 52% share of the market. Those under the age of 30 accounted for 25% of the market share, while homebuyers in the 45 – 60 years age category represented 18% of the market.

This distribution can be attributed to Pune’s status as a robust end-user market, where individuals often rely on bank financing to facilitate their home purchases. Consequently, there is a strong presence of professionals in the market, particularly in the 30 – 45 years age bracket, which is the largest segment.

Table: Age profile of buyers