Checkout Budget Highlights 2023Pune district reported 12,166 property registrations in January 2023, 9 percent less than in December 2022, according to data from the Maharashtra government’s Department of Registrations and Stamps (IGR). However, January 2023 saw a 34 percent year-on-year increase in property registrations from 9,101 in January 2022 to 12,166.
The 12,166 registrations contributed over 441 crore to state revenues. Primary and secondary residential deals accounted for 73 percent of properties registered in January 2023.
The preferred apartment area range was 500-800 sq ft, while INR 25-50 lakh was the preferred ticket size among homebuyers for residential properties in Pune district, said Knight Frank India, a real estate consultancy firm, in a report.
Despite strong headwinds, 2022 recorded robust sales momentum, witnessing over 1.39 lakh property sales registrations in Pune district. The total property value transacted stood at Rs 85,246 crore, leading to the state exchequer collecting Rs 4,843 crore in revenue from stamp duty and registration fees, the report said.
Momentum continuing
The report added that the market’s resilience is also demonstrated in continued home purchases despite the rise in stamp duty rates on account of the metro cess. The strong momentum has continued this year with January 2023 recording property registrations over 12,000 units, a 34 percent surge year on year.
The property value transacted also recorded a 42 percent YoY rise leading to Rs 7,736 crore worth of properties being transacted in January 2023 compared to Rs 5,444 crore in January 2022. Government revenue collection also recorded substantial growth, recording a 64 percent YoY jump in January 2023 on account of the rise in stamp duty and property price, amongst other factors.
However sequential moderation in sales was recorded in January 2023, with property registrations recording a 9 per cent MoM drop. Residential properties hold a major share of property transactions in January 2023, 73 percent of property registered are residential deals.
“The Pune residential market is primarily driven by end users and in the wake of recent headwinds, the market has shown great resilience towards home purchases. Despite consecutive repo rate hikes, implementation of metro cess, and devoid of any government incentives, home purchases continue to remain buoyant even while we do note a sequential decline this month,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. “Supportive affordability, strong employment prospects and improving infrastructure should keep homebuyers interested in the city.”
Central Pune accounted for 80 percent of transactions in January 2023
Central Pune, covering Haveli Taluka, Pune Municipal corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC), had the largest share of residential transactions, with its share inching up from 79 percent in January 2022 to 80 per cent in January 2023.
West Pune, which accounted for 12 percent of transactions in January 2023, had the second biggest share, covering areas such as Mawal, Mulshi and Velhe. The North, South and East had a smaller share of residential transactions, collectively accounting for 8 percent in January 2023.
Under Rs 50 lakh apartments account for 70 percent of demand
Apartments having a value of Rs 25-50 lakh dominated housing demand in January 2023, accounting for 38 percent of transactions, but down from 41 per cent in January 2022. Rs 50 lakh–1 crore accounted for 33 percent of market share in January 2023 making it the second preferred ticket size, with demand rising by four percentage points from 29 per cent in January 2022, according to the report.