Pune’s Home Sales Surge by 19% in Q3 2024 Despite Fewer Transactions

Although the total number of transactions was minimalExperts monitoring this phenomenon explain that a flood of sales in individual projects drive up the overall picture of Pune being on an upward spiral.

The real estate market of Pune has not lost its buoyancy with the city witnessing a noticeable upliftment in Home Sales value during Q3 2024. INDIA — Pune (inclusive of Pimpri- Chinchwad) recorded a whopping ₹13,865 crore worth home sales value in July to September 2024 quarter witnessing an impressive year-on-year growth rate of 19%, according IGR data and reigns the top region with maximum increase in revenue.

This was up on the $365,000 median recorded at this point in both 2017 and 2018 despite a small (1%) drop off in registered transactions with sales of completed residential homes numbering just 18.797 making it one of few traditionally quiet ‘pre-Xmas’ weeks to hold some star attraction! This reflects a clear trend for moving towards spacious and premium homes in the Pune real estate scenario. Read further to know all about what impacted Pune real estate market in Q3 2024!

Market Growth Driven by Increasing Home Values

Impressively, Pune posted record numbers with the average sales value of homes increasing while transaction levels marginally dipped. Compared to the same period last year, in Q3 2024, home prices increased by an average of 20% and exceeded Rs. The rise in value is indicative of a shift among Pune homebuyers in favor well-sized and exclusive homes.

During this period, demand for high-end homes (priced above ₹1 crore) showed growth and captured 18% of the market share as against 13% in H2'2019. And secondly, homes ranging between ₹1-2 crore made up 15% of the entire registered transactions hinting at a larger willingness to trade in for new living experiences & spaces suited for an evolving lifestyle.

Change in Homebuyer Preference for Space

Among the key trends in Pune’s Q3 of 2024 real estate market, one trend that really stands out is "increasing preference for bigger homes". Houses sized 1,000–1,500 sq. ft accounted for a larger share of the market too; this trend was particularly apparent in charts from Square Yards as well. sqft, those now account for 11% of all transactions vs only 8% last year. This trend is consistent with a broader post-pandemic trend as homebuyers across the country increasingly seek, often in vain these days, more room for comfort and work-from-home setups – even lifestyle upgrades many are doing without.

Nevertheless, units in the 500–1,000 sq. The midsize/cat B models in the 40-90-ft. range still take most of the market, with a share that stands at 62 percent for all registered deals. While more expansive homes continue to take a larger share in the new-build market, smaller builds remain those most easily accessible for America's buyers—a telling demonstration of evolving home-buying behaviour among both individuals and households.

Leading Developers in the Game

A few of the flag bearers from Pune based real estate developers who spurred up home sales value during this quarter. Kolte Patil Developers lead the market as its Life Republic in Hinjewadi was a maximum revenue earning project with tremendous number of transactions. The demand for luxury homes at Hinjewadi, which is a prime location due to its proximity to Pune's IT hub only shows that there has been great interest developed among the property buyers' from all strata of society.

A southern developer, Pristine Properties which did extremely good due to the performance if its O2 World project in Kharadi. Eastern corridor of Pune particularly localities like Kharadi have been the favorite for homebuyers due to availability of quality residential options at several new project launches, burgeoning infrastructure and connectivity here

Mahindra Lifespaces was another top performer in Pune with Codename Crown that helped this project to be counted among the best players of Pune. The project sale figures, which are very high helped the builder to make its entry into top 10 in Pune market that is Burlington Gate probably marks a standout year for Mahindra Lifespaces.

Shift in Pricing Segments

There has been a substantial change in the varying price class distribution of home sales going into Q3 2024. Demand for luxury living picked up with premium homes above ₹1 crore seeing their share going up from 13% a year ago to 18 % this quarter. At 25% and ), respectively (1965 download6%) — the same number these two categories represented in Q4FY19), while homes priced at < ₹50 lakh saw a reduction of change from representing 87%, indicating that there is little yet definite impact towards higher ticket properties.

It is safe to say that the growing lifestyle aspirations of every homebuyer in Pune and a rise in disposable income coupled with better access to cheaper housing loans led this shift. Sorry, homebuyers want a more comfortable and realistic living environment in bigger, amenitized homes.

West Gross DC%), Well Above Expectations

The western suburbs of Pune recorded the highest average sales value in 2018, with quite a few locations even crossing ₹1 crore due to price appreciation. The demand has especially increased in Hinjewadi and Baner, which have now become the hub for people looking to invest into real estate due to their connectivity towards IT belt as well burgeoning infrastructure.

Sachin Vyas Principal Partner and CPO Square Yards said, “ Pune still is one of the most robust residential markets in India second only to Mumbai MMR. A clear movement towards premium housing is in evidence, with the average home sales value up 20 per cent on an annual basis to a new peak of ₹74 lakh during Q3 September 2024 and even crossing the ₹1 crore mark for western suburbs.

Outlook for the Rest of 2024

On the brighter side, experts are hopeful on real estate growth prospects of Pune. More demand during the ongoing festive season and attractive offers from developers may also push home sales higher in coming months. Several developers including said that these offers will benefit customers, especially for new homebuyers who are looking to buy in the premium segment.

Banka: While the number of transactions may be a bit lower, Pune's real estate sector is showing high resilience due to its end user formula backed by steady appreciation and demand for bigger sized premium homes. This means that the city's real estate market is expected to continue driving through in full force for not just this quarter, but perhaps well into the next as more buyers look for properties that can afford them a comfortable living experience.

Conclusion

Even as the transaction volume showed a marginal dip, Pune was among those markets that exhibited resilience with home sales value increasing by 19% in Q3 2014. The drift towards premium houses has been in response to the way buyer preferences have altered, by and large driven by the fact that Bombay's burgeoning middle-class and upper-middle class were more than ready for higher-value spaces. Despite a surge in home sales, with leading developers such as Kolte Patil Developers, Pristine Properties and Mahindra Lifespaces boosting on-ground transactions and the festive season driving additional momentum — Pune real estate is all set to keep growing its upward movement.