Tag Archives: Pune’s real estate

Property prices in Pune are booming, with a 46% increase in registrations for properties between Rs 50 lakh and Rs 1 crore.

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A 46% year-over-year increase in property registrations was reported in January 2024 by the Maharashtra government’s Department of Registrations and Stamps, also known as the Inspector General of Registration and Controller of Stamp (IGR), which helped the Pune real estate market. 

The data shows that in January 2024, there were 17,700 registered property units, compared to 12,166 units in the same month the previous year. This spike indicates a growing interest in investing in city real estate. 

In December 2023, the district registered 14,725 property units, generating Rs 560 crore in revenue from stamp duty. In January 2024, stamp duty receipts increased significantly from Rs 441 crore in January 2023 to Rs 589 crore. 

Real estate consultancy Knight Frank India reports that in the Pune district in 2023, there were 152,323 property registrations, and stamp duty collections totaled Rs 5,351 crore. 

A Knight Frank India analysis shows that residential units priced between Rs 50 lakh and Rs 1 crore accounted for the most registrations in January 2024, accounting for 32% of all housing transactions. The properties with prices between Rs 25 lakh and Rs 50 lakh held a 31% market share, making them the closest competitors. Additionally, from 10% in January 2023 to 14% in January 2024, the market share of properties in the higher value segment–which includes those priced at Rs 1 crore and above–increased, indicating that buyers are growing more accustomed to selecting properties in this price range. 

Furthermore, as of January 2024, 41% of the market consisted of apartments ranging from 500 to 800 square feet. Less than 500 to 800 square feet. Less than 500 square feet was another prevalent apartment size, drawing interest and accounting for 33% of transactions. The market share of apartments larger than 1,000 square feet increased from 12% in January 2023 to 14% in January 2024. 

Regarding buyer demographics, most buyers–who accounted for a sizable fifty-four percent of the market—were between the ages of thirty and forty-five. Sixteen percent of buyers were between the ages of forty and sixty, and twenty-four percent of consumers were under thirty. 

What’s increasing the demand for luxury and mid-range housing in Pune and MMR?

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Buying a property is a significant choice, particularly luxury or mid-range housing. The growing demand for upscale real estate in cities like Mumbai and Pune indicates that modern homebuyers have aversions to comfort and luxury all under one roof. However, how is Pune’s and MMR’s real estate market holding up to the growing demand for opulent homes?  

The luxury real estate market has had a spectacular recovery in the last few years following the pandemic. The trend of working from home has led to an increase in investments in luxury homes with large floor plans, first-rate amenities, and improved quality of life. The trend has centered in desirable areas like Pune and the Mumbai Metropolitan Region (MMR), which saw growth of 42% and 8%, respectively, in Q3 (July-September) of 2023. Propertywala investigates the reasons behind the rise of mid-range and luxury real estate in Pune and MMR, along with the expected shifts in the market in 2024. 

What drove the demand for luxury and mid-range homes in Pune and MMR? 

The Union Budget of 2023, in which the Government set a cap of Rs 10 crore for tax deductions on long-term capital gains, is responsible for the spike in the sale of high-end homes in Mumbai. Real estate gains currently carry a 20 percent post-indexation tax if not taxable within two years. The income-exemption limit under Sections 54 and 54F of the Income Tax Act will increase by Rs 10 crore under the new caping, which will take effect on April 1, 2024. According to experts, the desire to upgrade to better, more spacious homes and the rush to save taxes on gains are the causes of the increase in demand for luxury housing in most cities, especially Pune and Mumbai. 

In what ways have the costs of luxury and mid-range housing in Pune and MMR changed? 

Mumbai’s property values have always been higher than its neighbors in Delhi, Bangalore, and Hyderabad, but the COVID-19 pandemic has caused the rates to rise even more. The increased cost of building materials, rising mortgage rates, and the preference for large homes are the reasons given by developers. Moreover, one of the causes of the high demand for luxury homes in cities like Mumbai and Pune is the abundance of NRI investment opportunities pouring in from the Gulf countries. 

The unexpected pay increases in the years after the pandemic are another reason driving up the price of luxury homes. According to ET HR World, salaries in Mumbai rose by 18% despite the pandemic. This hike is higher than the remaining metro areas’ average hike of 11%. It is a further factor that helps explain why Knight Frank’s 2023 Affordability Index report ranks Mumbai as the most expensive city in India. The EMI-to-income ratio of 55% indicates that Mumbai residents repay their home loans with more than half of their wages. 

Residential sales in the MMR region recorded sales of 1,53,870 units in 2023 as opposed to 1,09,730 units in 2022, demonstrating the resilience of residential sales in the face of rising costs. Pune sold 86,680 units after close, compared to 57,145 units in 2022. 

The MMR region’s trend of luxury home ownership and the money made  

With the assistance of the Maharashtra State government’s revenue collection from real estate transactions, let us examine the newly emerging luxury housing sector. The Maharashtra state government registered 72,700 properties between January and July 2023, netting Rs 6,500 crore. 

The average property value, reported at Rs 1.9 crore, represented another paradigm shift. The average value of properties registered in February 2022 was Rs 1.18 crore, so it’s 65 percent more than this amount. 

It is not a one-time event. Last year, the state received Rs 10,850 crore in revenue from stamp duty, an increase of 22 percent. The president of CREDAI National, Boman Irani, states that “post-COVID, homebuyers’ shifting sentiment played a crucial role in both economic and sectoral growth. “Property registrations for units valued at Rs 1 crore and above have sharply increased from 52% in 2020 to 57% in 2023 due to the demand for larger homes.”

Furthermore, Sotheby’s International Realty and CRE Matrix found that the growing demand for better amenities, larger homes, and affordable home loan rates has resulted in a twofold increase in sales of luxury houses.  

Popular sizes and configurations in Pune and MMR

The MMR area and Kolkata are the only two cities where average flat sizes have decreased by 2% and 5%, while other major cities like Hyderabad and Delhi NCR have seen the construction of larger homes. There have always been space issues in the MMR region, and the rise in residential demand has resulted in smaller, more compact homes than in the past. According to industry reports, 2-BHK apartments continue to be the most popular kind of housing in the area. 

In Mumbai, the average sought-after home size is currently 749 square feet, a decrease from 840 square feet in 2022. On the other hand, the MMR region has seen an increase in average sizes of one percent between 2019 and 2023 if we take into account the overall appreciation over the previous five years. In contrast, Pune’s average apartment size grew to 1,086 square feet in 2023 from 980 square feet the prior year. 

The annual Luxury Outlook Survey 2024 indicates that while the demand for luxury homes increased in 2023, this trend is here to stay. The poll shows that although real estate prices have increased by 40% in the past 24 months, 71 percent of respondents said they plan to purchase a luxury home in the upcoming year. Of these, almost 56% of wealthy Indians believe that the Reserve Bank of India (RBI) will lower interest rates in the coming Budget announcements for 2024. 

In summary, modern luxury residences are not just about grandeur; they also reflect a refined style distinguished by one-of-a-kind encounters, high-end conveniences, and first-rate services. It is especially true for people moving to urban areas in India in search of a better, more lavish way of life. Therefore, in the upcoming quarters, there will probably be an increase in demand for luxury and mid-income housing in MMR and Pune. 

Commercial Shops for Sale in Pune

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In recent years, Pune has steadily developed into a center for the IT industry. Numerous investors from around the world are interested in Pune’s properties. The city is now a lucrative substitute for Mumbai’s pricey market. In Pune, commercial property stands to rise by about 15%.

The demand for properties for sale in Pune has increased due to the IT, startup, manufacturing, and automobile industries. More industries also mean an increased workforce. As a result, there is a growing demand for residential properties in Pune and the need for office space leases to purchase. Are you thinking about making a commercial real estate investment? If so, Pune should be on your radar. Pune is quickly emerging as a top location for commercial property investments because of its advantageous location, flourishing business environment, and pleasant climate. We will look at the benefits of buying business shops in Pune here.

What are the top 5 arguments for purchasing a Commercial Shop in Pune? 

Development of Buildings 

With the building of highways and flyovers, Pune’s infrastructure has grown significantly in recent years, making transportation within the city much more convenient. The ongoing metro rail project will enhance connectivity. Due to this positive development, Pune is now a desirable place to invest in commercial real estate. 

The technology center for the region: 

Pune, known as the “Oxford of the East,” is quickly becoming a center for technology companies thanks to its numerous prestigious educational institutions. Major companies like IBM, TCS, Wipro, and Infosys have opened offices in Pune because of its appeal. There is now more demand for commercial properties in the city. 

Profitable business opportunities: 

Pune is a thriving center for many industries besides being a well-known hub for IT firms, including the automotive, manufacturing, and pharmaceutical sectors. Pune has become a desirable location for business investments thanks to its diversity of business climate.  Thanks to its diversity of business climate. Pune is a compelling location for businesses looking for expansion opportunities due to its large population and resulting expansive consumer market. 

Unusual weather: 

Pune has pleasant weather all year, making it an appealing choice for tourists and business travelers. The city experiences mild winters and summers, making it a change from the severe weather in other parts of the nation. Pune is a sought-after location for businesses looking to open offices and staff seeking quality of life because of the pleasant climate. 

Advantages of Commercial Shop in Pune 

The value of commercial properties rising: 

Due to the potential for property value to increase over time, purchasing a commercial shop in Pune may be a wise long-term investment. Commercial property will rise in value as Pune develops and grows as a city. Pune, which has seen significant growth in the commercial real estate sector, is one of the top ten emerging markets in the world, according to a report by JLL India. As a result, investing in a commercial shop in Pune can result in several long-term advantages. 

Rental and Lease Options

Purchasing a commercial shop in Pune also offers a variety of rent and lease options due to the city’s diverse business environment. A wide variety of businesses, from emerging startups to well-established multinational corporations, can be found in Pune, which has led to a high demand for commercial real estate. Due to this demand, property owners have a lucrative chance to rent out their commercial properties to tenants and create a steady income source. 

Potential for new companies 

There are many chances for new businesses to establish themselves in Pune because the city is a thriving business hub. Purchasing a commercial shop in Pune can give a company a physical location where to operate, increasing its sense of legitimacy and stability. Additionally, owning a commercial shop can be more affordable than renting or leasing a property for a business to establish a presence in a prime area. 

Consider your options when opening a business in Pune.

Business Facility 

Business centers are a highly sought-after option for those looking to buy a commercial shop in Pune. Usually multi-story structures, these centers offer an array of commercial spaces, including large and small retail spaces. Meeting rooms, conference facilities, and communal reception areas are typical amenities found in business centers. They provide the best option for companies looking for a ready-made option because everything, from the infrastructure to maintenance, is taken care of.  

Malls 

In Pune, buying a commercial shop in a mall is a common choice. Malls provide a range of commercial spaces, from little kiosks to big department stores. Malls also draw a lot of foot traffic, which makes them the perfect place for retail businesses. Due to their desirable location and further amenities, malls may be more expensive than other commercial options. 

Residence with retail space

Residential buildings with commercial spaces are a fantastic investment for people looking to open a shop in Pune. These multi-story structures typically have commercial spaces on the ground floor, making them ideal for eateries, gas stations, and grocery stores that cater to residents. Also, building residents may turn into clients; these buildings have a ready-made clientele.