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99acres India’s No.1 Property Portal PUNE PROPERTY CAPSULE 2020 PUNE YOY CAPITAL PRICE MOVEMENT IN POPULAR LOCALITIES OF PUNE 3% 3% 3% Pune’s residential market bore a massive GROWTH INDUCERS GROWTH IMPEDIMENTS 2% brunt due to the COVID-19 crisis in March • Up to three percent reduction in stamp duty • The hike in Ready Reckoner Rates (RRR) by 3.9 1% 1% 2020. The nationwide lockdown till May rates gradually reinforced the home buying percent across the city remained a dampener, 0% 0% Hinjewadi Hadapsar 2020 upset the demand-supply dynamics sentiment in the beleaguered market of Pune especially for the micro-markets of Pashan, as housing sales dropped by around 42 and helped in scaling down the impact of Bibwewadi and Bhavani Peth, which recorded Baner Wakad -1% Chakan Kharadi Wagholi Kothrud percent in H1 2020, as against H1 2019. COVID-19 crisis in H2 2020. around 15-20 percent hike in the circle rates. Balewadi New launches also plummeted by about • The ‘compulsory land acquisition’ clause to • Despite the FSI being hiked to four, the Pimple Saudagar 37 percent during the same period. Amid accelerate work on the ongoing Hinjewadi- ‘no cluster policy’ impeded the residential poor offtake of residential units in the Shivajinagar metro corridor and the extension development in the Transit-oriented Zones primary and resale markets, the unsold of metro lines from Swargate to Katraj, Vanaz to along the Sant Tukaramnagar-Phugewadi inventory grew by over 10 percent and Ramwadi and Maan to Pirangut are set to fillip metro corridor. stood at around 45,000 units at the end the infrastructure and residential landscape in • Violations pertaining to RERA-registrations of H1 2020. The average price movement the city. -9% remained restricted with a minute 1-2 and various other norms under the regulatory percent change in select pockets. • Additionally, the proposed Pune-Nashik High- act coerced the government to establish a Speed Rail Corridor, a 170-km long ring road four-member squad, which will scrutinise After a cautious consumer sentiment in and a new airport at Purandar are also viewed three lakh registration documents at 27 YOY RENTAL PRICE MOVEMENT IN POPULAR LOCALITIES OF PUNE H1 2020, the second half of the year saw as future growth corridors. sub-registrar offices. some improvement in deal closures. A • The FSI hike of four for Slum Rehabilitation • The increase in the lease rates for commercial significant cut in stamp duty in August, Authority (SRA) projects aims to boost the properties owned by municipal bodies did not 6% 6% coupled the expanding metro network, vertical development in the city’s densely go down well with the tenant community. The unchanged lending rates, several offers 4% 4% populated areas. The implementation of a new new lease rate effective will be eight percent of by developers and digitalised sites 3% Uniform Development Control (UDC) rule will the current RRR as against two percent earlier. 2% 2% visits, boded well for the sector. Ready 1% expedite around 20 SRA schemes across Pune. homes remained the prime choice due • Rampant construction remained a 0% Chakan to their exemption from GST and lower • Plateauing rentals and value-driven propositions matter of concern as around 100 illegal enriched the commercial expansion in Pune, developments were identified in areas, such Baner registration cost. Construction activities Wakad Kharadi Wagholi Balewadi Kondhwa Hadapsar particularly in the markets of Kharadi, Baner, as Vadgaon Budruk, Pimple Gurav and Hinjewadi also gained some pace around Q3 -3% Hinjewadi and Balewadi. Amid this, the office Kondhwa-NIBM stretch. 2020, with workers returning to project space vacancy rate in the city remained range- Pimple Saudagar sites and improved supply chain of raw bound to 4.7 percent, one of the lowest across materials. Maximum number of new metro cities in 2020. launches were seen near transit nodes of Mumbai-Pune Highway and Bangalore-Pune Expressway. MARKET INDICATORS Noticeably, Pune’s realty market was seen lifting itself by Q3 2020. However, Jan-Mar 2020 Apr-Jun 2020 Jul-Sep 2020 Oct-Dec 2020 Jan-Mar 2021* developers are still looking forward to some construction-friendly policies to Capital Values bring down the construction cost, which Rental Values** has gone up significantly during the COVID-19 crisis due to high capital cost Residential Inventory and stringent lending norms adopted by financial institutions. * Projected price movement and inventory status **Rental values depict annual change in average asks for respective quarters COVID-19 & IN NEWS JUN State extends REAL ESTATE validity of building permits under RERA by Impact on homebuyers MAY nine months The nationwide lockdown and the resultant Construction activities economic instability washed out housing resume in non- demand in H1 2020. The sentiment, containment zones however, improved gradually post July this year. The unchanged repo rate, lower risk weightage on home loans, and 2-3 percent stamp duty reduction in States such as Karnataka and Maharashtra helped improve home enquiries. Homebuyers remained JAN cautious, and their continued affinity for PMC approves ready homes served as the testimony. construction under APR Tenants, too, uplifted demand in the low- Transit-Oriented Stamp duty reduced by cost and mid-income housing segment. The Development Policy one percent for two years pandemic altered customer preferences and peripheries offering bigger residential units at relatively lower ‘asks’ garnered traction JUL as most people worked from homes. Ready homes priced within Rs 45-65 lakh remained COVID-19 takes a the most popular. toll on infrastructure projects; FSI hiked in TOD zone along the Hinjewadi-Shivajinagar MAR metro corridor Impact on Industry State allocates Banned construction activities, closed FEB Rs 15,000 crore for site visits and a sizeable number of deal infrastructure projects; PMC rejects property PMC approves cancellations post the COVID-19 outbreak tax hike Rs 230 crore for metro left developers in dire straits and stifled line extensions the realty graph between March and June 2020. The market started recovering only in DEC H2 2020. Developers leveraged regulatory Unified Development relief under RERA and the loan moratorium. Control and Promotion However, new launches remained at a Regulations (UDCPR) AUG backburner as the prime focus was majorly norms notified on completing existing projects. This Stamp duty slashed by augured well for unsold inventory across 2-3 percent metros. Sales also improved moderately with serious buyers making purchases amid highly lucrative market conditions including home loan incentives. Digital transformation in real estate business emerged as a key trend and is likely to set the tone for gradual restoration in the near-term. NOV State approves FSI of 4 for SRA projects OCT SEP State hikes Ready PMC approves amnesty Reckoner Rates scheme for property 99acres CONTACT US tax defaulters India’s No.1 Property Portal Email: [email protected].