Pune saw a 5 percent rise in housing prices to ₹7,681 per square foot during the April-June quarter, according to a report.
Realtors’ apex body CREDAI, real estate consultant Colliers India and data analytic firm Liases Foras released a joint report on ‘Housing Price-Tracker Report 2022’ for eight major cities — Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.
Prices of units under construction have been on the rise since last year, increasing about 5 percent YoY, the report showed.
Mr. Ram Naik – Director, The Guardians Real Estate Advisory said, “The real estate prices have not gone up in the last couple of years despite the sector being suppressed by a volcano of disruption resulting in sluggish market economics. But now with the economy coming back on track, the critical raw material prices, construction costs and the rising interest rates continue to surge at a rocket pace compelling the developers to pass the burden on the home buyers resulting in higher property prices.”
Despite rising prices and an increase in new launches in the last few quarters, unsold inventory saw a dip in the majority of the cities.
Unsold inventory dropped 13 percent on a YoY basis signaling improved market activity and buyer confidence in Pune, it said. A resurgence in demand for residential real estate has led to an increase in prices across the top eight cities.
“The increase in property prices has not affected the real estate market in Pune as we can see a drop in the unsold inventory indicating that there is a genuine demand for homes. This has led to robust demand and a positive home-buying sentiment in the recent quarters. However, if the property prices increase further, then it will severely affect positive sentiments of home buyers and the overall demand,” added Mr. Naik.
As per the report, prices of 2 BHK properties have shown a maximum increase of 5 percent YoY indicating healthy demand for this category. Kothrud and Baner area saw the maximum surge in housing prices at around 9-10 percent YoY range.