Pune’s Property Market Thrives Amid Strong Demand

Pune, October 19, 2024: Knight Frank India has reported significant growth in Pune’s residential real estate sector, with property registrations hitting 138,412 units in the first nine months of 2024—a remarkable 29% increase year-on-year. This surge has translated into stamp duty collections exceeding INR 5,253 crore, reflecting a robust 38% rise compared to the same period last year.

Monthly Breakdown: Registrations and Collections

Data shows that while the total property registrations grew substantially this year, September 2024 witnessed a decline. The city recorded 11,056 property registrations in September, a 33% decrease from September 2023. Stamp duty collections for that month reached INR 508 crore, marking a 13% year-on-year decline. The downturn is largely attributed to the ‘Shraadh’ period, a time traditionally avoided for significant transactions.

Luxury Segment Sees Increased Activity

Interestingly, the luxury property segment (valued at INR 1 crore and above) gained traction, with its share of registrations increasing from 11% in September 2023 to 14% in September 2024. The INR 50 lakhs to 1 crore category remains the most sought-after, indicating a preference for larger, premium homes among buyers.

Growing Demand for Larger Living Spaces

The trend towards larger living spaces continues, with apartments larger than 800 sq ft accounting for 30% of transactions, up from 28% last year. This reflects the ongoing demand for more spacious homes, likely influenced by changing lifestyle preferences post-pandemic.

Central Pune Dominates Transactions

Central Pune, including areas within the Pune Municipal Corporation and Pimpri Chinchwad Municipal Corporation, accounted for 80% of all residential transactions in September 2024. While Central Pune remains dominant, there’s a gradual increase in activity in the western regions, which captured 12% of transactions.

Expert Insights on Market Dynamics

Shishir Baijal, Chairman and Managing Director of Knight Frank India, remarked, “Pune’s real estate market continues to thrive, with property registrations up by 52% year-on-year so far. Factors such as rising incomes, positive consumer sentiment, supportive financing options, and ongoing infrastructure projects are solidifying Pune’s reputation as a top choice for homebuyers.”

Conclusion: A Bright Future Ahead

As Pune’s real estate market evolves, the combination of increased demand for luxury homes and larger living spaces indicates a promising trajectory. The city’s ability to adapt to the changing needs of homebuyers will be crucial as it maintains its status as a thriving residential hub.