Pune Property Market Sees Temporary Dip Due to Shraadh but Shows Resilience in 2024

The real estate market of Pune, one of the important property investment destinations in India witnessed a severe slump in house registrations during Shraadh period which is observed for cultural purpose, upon entering September 2024. But, nevertheless this fall is a blip in the overall numbers for Pune and then if you consider growth figures for rest of India it becomes clear that how bad things really are.

In the month of September 2024, Pune observed a dip in property registrations by around 33 per cent as per recent reports from Knight Frank India. It saw 11,056 registrations over the month while in the same period last year this figure was at 16,604. Given the Shraadh period, which is a traditional time for many buyers to avoid major financial transactions )alphabetically first on this list), there was an expected dip in numbers collected. However, the YTD property registrations for Pune say a different story altogether of recovery, growth and hope.

A total of 138,412 units were registered in Pune from January to September 2024 making it a feat increase by one percent YoY compared with same period last year. The strong show has resulted in a 38% year-on-year (YoY) rise in stamp duty collections, which stood at INR 5,253 crore during this period.

How does Shraadh affect Pune Property Market?

The Shraadh period is a 12-day inauspicious time for Hindus, during which several wary people avoid entering into important deals and transactions — especially involving real estate. This cultural trait is something that resulted in a 33% drop in property registrations to just 11,056 units from the previous year time of September 2024 when nearly around same month last year it recorded over than double at 16,604 as per Information and Data Exchange Agency data.

Knight Frank India Chairman and Managing Director, Shishir Baijal said the decline in property registrations during September is a periodic phenomenon triggered by religious practices. There is a general downward trend in the market, since visitors tend to wait till after Shraadh when they are considering something as big and long-term an investment like real estate.

That said and done, despite the large cultural influence, Pune having a strong ground reality is notably evident as its property markets are showcasing good fundamentals backed by rising incomes of people, consumer confidence level at an all time high levels & bang on infrastructure developments which has been moving in full swing. Baijal coaxed that, the base of Pune realty is strong and slight deviations for a shorter period like Shraadh do not affect long term developmental breakups.

YTD Performance +29% Growth in Registrations

September was the exception, but data for 2024 overall gives a bright picture of Pune’s real estate sector on an uptrend. Between Jan- Sep 2024, property registrations jumped by a whopping 29% YoY with the total number of units registered now at an all.High142218 against last year's figure which stood tall at 110071. It is a sign of continued demand for real estate in Pune — this time post Shraadh.

Revenue grew 19 per cent. Higher stamp duty from properties generated an additional Rs 5,253 crore -up by a massive ₹1,448-crore or +38%- in the first three quarters of the year. This makes the buoyant demand and healthy market sentiment among buyers and investors in Pune evident.

Why Has Real Estate in Pune Remained Resilient?

Here are a few reasons that have made Pune property market stable in 2024 even during the time of Shraadh. Shishir Baijal, Chairman & Managing Director of Knight Frank India explains some principal drivers in this regard:-

Growing incomes: Disposable income has gone up in Pune, especially among the young professionals and IT group who are more open to high end investments.

Buyer Sentiments Are Up: We are seeing a marked uptick in positive sentiment among buyers who feel Pune is on the growth path. Attractive financing sentiment, accompanied with favorable home loan interest rates as well and continues to attract buyers.

Infrastructure Development —Granted, there are a lot of infrastructure development coming up in Pune such as the likes of Emergency response centers, New Highways and Smart city initiatives. These improvements have increased accessibility and improved the quality of life, thus attracting both home buyers as well as investors to invest in Pune.

The Shift to Bigger Homes: Finally, due in part to the same reasons some are no longer shopping for smaller homes but now looking toward bigger homes (as noted above), there is additionally an increase dispersion of buyers across territories and larger numbers purchasing single-family properties that provide more room for living work-from-home setups since buying a small house isn't on-trend like it was before. The pandemic has strengthened this demand, with individuals looking to acquire homes that provide enhanced comfort and versatility.

Future: Good times for Real Estate Developers in Pune.

Pune Market Keeping Well- Despite the challenges of shraadh period, Pune real estate market has been on a robust track. A massive 29% increase in property registrations from January to September 2024 and concomitant stamp duty collections suggest a solid market appetite for real estate, boding well for the future.

With the festive season coming up, there are doubts that Pune's realty market will continue to pick pace. Even before the budget, developers were providing aggressive deals to woo homebuyers through various offers and finance schemes. With the right blend of laid-back lifestyle and growing infrastructure, coupled with rising consumer confidence will make Pune a hot market to watch out in near future for realty investments.

Conclusions: Resilience in the Face of Tropical Culture and Economy

The faithful following of the citizens can be seen clearly by Pune's real estate market as it has once again shown its spirit in fighting against short-term hurdles like Shraadh period. On a year-to-date basis, property registrations continued to do fairly well in September 2024 registering an expansion of at least 29 percent just as state governments witnessed stamp duty collections expand by about the same rate on a monthly basis.

Driven by increasing disposable incomes, infrastructure enhancements and buyers in a more positive frame of mind the property market has never looked better set for year-on-year growth through 2024 narendra Mishra JLL India Thus, whether you're a homebuyer looking to settle in the city or are an investor eyeing new investments; Pune still presents itself as one of India's most definitive and dynamicreal estate markets.