Pune’s Property Market Witnesses Strong Growth in January 2024
Knight Frank India’s latest assessment of Pune’s property market reveals a significant rise in property registrations and stamp duty collections in January 2024 compared to the same month last year. This surge indicates the growing confidence among homebuyers in Pune and reflects the favorable affordability and positive outlook on property ownership in the city.
Rise in Property Registrations
In January 2024, a total of 17,785 properties were registered in Pune, showcasing a noteworthy increase of 46% compared to the previous year. This substantial rise in transactions demonstrates the steady growth of the property acquisition sector in Pune.
Stamp Duty Collections
Stamp duty collections during the same period amounted to INR 589 crores, indicating a significant 34% year-on-year increase for the month of January. These collections highlight the strong demand for properties in Pune and further solidify the city’s position as a thriving real estate market.
Preference for Higher Value Segments
The report also highlights a shift in preference towards higher value property segments. In January 2024, residential units priced between INR 1 crore and above accounted for 14% of the market share, compared to 10% in January 2023. This upward trend suggests an increasing preference among homebuyers for properties in this price range.
Varied Apartment Sizes
In terms of apartment sizes, the report reveals interesting findings. Apartments within the range of 500 to 800 sq ft garnered the highest share at 41% of transactions in January 2024. Apartments with an area under 500 sq ft also gained significant attention, constituting 33% of transactions and making it the second most preferred apartment size. Interestingly, larger apartments exceeding 1000 sq ft saw a rise in market share from 12% in January 2023 to 14% in January 2024. This shift towards larger apartments indicates changing preferences among homebuyers in Pune.
Dominant Residential Market Areas
Central Pune, which includes Haveli Taluka, Pune Municipal Corporation PMC, and Pimpri Chinchwad Municipal Corporation PCMC, continues to dominate residential transactions, accounting for 75% of the total in January 2024. However, new supply in other parts of the city has led to a slight decline in its market share compared to the previous year. West Pune, covering regions like Mawal, Mulshi, and Velhe, held the second-largest share of residential transactions, accounting for 15% in January 2024. North, South, and East Pune collectively held a smaller share of residential transactions but showed marginal growth compared to the previous year.
Buyer Segment Demographics
The data highlights the demographics of the homebuyer segment in Pune. Buyers in the age group of 30 – 45 years constituted the largest buyer segment, holding a substantial share of 54% in the market. Those under the age of 30 accounted for 24% of the market, while homebuyers in the 45 – 60 years age category comprised 16% of the market. This age distribution reflects Pune’s status as an end-user market, where individuals often rely on bank financing for their home purchases. The presence of professionals in the 30 – 45 years age bracket further strengthens this trend.
Overall, the strong growth in property registrations, stamp duty collections, and the increasing demand for higher value segments in the property market demonstrates Pune’s position as a thriving real estate destination. The city continues to attract homebuyers with its favorable affordability and positive outlook on property ownership. As new supply emerges in different areas of Pune, it will be interesting to see how it shapes the dynamic of the residential market in the city.
