COVID-19 undoubtedly wreaked havoc all across the world. Industries, transportation, and everyday living – all came to a standstill during the pandemic. But the past two years also highlighted the perks of owning your own home and drove the general populace towards the decision of buying their own home once life got back on track.
With real estate recuperating stably, the sector has witnessed full bloom, reaching a point of convergence where the demand and supply in the real estate market meet. Developers around the country have launched their new and stalled projects, whereas buyers are equally excited to open doors to their dream abode.
Despite multiple setbacks, including inflation, an unstable economy, and increasing interest rates, the residential activity in Quarter 2 of 2022 witnessed positive growth across cities in India, including Pune. The city saw a historical highest-ever launch of new homes in the residential realty market at 115,996. This indicates a surge of 80% in the homes being brought to market from June 2021 to 2022. Experts applaud it as one of the best news for real estate in the last few years, indicating robust demand for real estate and the resilience of the sector.
These numbers were brought to light by a report published in July 2022. This report was based on primary and proprietary findings that analysed all existing projects in a 30-km radius of a city centre.
The report said that home prices continue to rise for the last two years. It suggests that this is a good sign as affordability continues to be near all-time highs. The last 12 months saw more than 1.15 lakh homes being brought to market and over 1.05 lakh homes being sold. Both these figures are all-time high records. The luxury segment, too, witnessed an increase in sales and new launches, which the report says compensates for the years of the segment being in the doldrums.
The report further mentions that the effects of the pandemic have been totally eliminated when it comes to new projects being launched. It adds that for the 12 months that ended in June 2021, a total of 64,617 units were brought to the market. This number rose by 80% to 115,996 homes being brought to market by June 2022. This was indeed the highest 12-month new inventory ever introduced into the Pune real estate market.
The report suggests that affordability levels for housing have seen a slight reduction in the city. The average prices of homes across the city have witnessed an increase of 8.11% in the last 12 months. The report points out that there is a rise in the prices across the board, especially with respect to the new projects, where prices have gone up by ~ 24% in the last year. Over the years, however, while the rate of interest for loans has come down, incomes have witnessed an upward trend, thereby increasing the affordability of housing significantly.
At the same time, a host of other factors, including lucrative home loan rates, controlled launches, high prominence of organized players, and the growing momentum of the Indian economy, all indicate that the residential sector in our country will emerge stronger in the years to come.
As the impact of the pandemic comes down, with augmented vaccination drives and life returning to normal, developers look forward to making the most of the huge demand for housing to bounce back with new residential property launches.
RGS Realty, born out of the excellence of Sukhwani Constructions, relentlessly strives to change the face of housing in Pune. Their expertise is seen through exceptional residences around the city, where your dream homes stand tall on the foundation of goodness. To know more about them, visit www.rgsrealty.com
Sources:
https://www.punekarnews.in/historically-highest-ever-launch-of-new-homes-in-pune-residential-realty-market-at-115996-a-surge-of-80/