Pune’s residential real estate industry has reported 38 per cent growth on a year-on-year (YoY) basis in 2021. Property consultant Knight Frank’s half-yearly report out on Wednesday afternoon showed that the region has clocked sales of 37,218 units last year, while a total of 3.8 million square feet of office space was transacted.
New launches, the report said, rose by 16 per cent with the addition of 40,489 units last year. The second half of the last year saw the finalising of 19,744 units while 70 per cent of the office space transaction was done in the second half.
The report highlights that Pune witnessed 2.7 million square feet (mn sqft) of office space transactions in the second half (H2) of 2021 with the highest YoY growth during the period among the top eight cities. A total volume of 3.8 mn sqft of office spaces was transacted in 2021 out of which 70 per cent was transacted in H2 2021. The average deal size increased by 11 per cent YoY to 58,685 sqft in H2 2021, compared to H2 2020.
On the aspect of rentals, the city witnessed a marginal rent increase of 3 per cent quarter-on-quarter (QoQ) during Q4 2021. The BFSI sector emerged as the main driver for the Pune office market with a transaction share of 35 per cent, followed by manufacturing and co-working with a transaction share of 19 per cent & 18 per cent respectively in H2 2021.
In the residential segment, Pune witnessed sales of 19,744 housing units in H2 2021. The total number of home sales in CY 2021 was seen at 37,218, making Pune the third largest residential market in the country. The average price level was reported to be INR 4,000 per sq ft.
The south and east markets also steered the sale volumes during H2 2021 contributing 38 per cent and 24 per cent respectively to the total sales. The west market shrivelled to 22 per cent in H2 2021 though it held a strong position with a market share of 35 per cent in H2 2020. The price levels remain unchanged in H2 2021.