One of the best things about living in our country is the cultural diversity of India. This diversity brings on board multiple festivals and reasons to rejoice in oneness. Festivals are believed to be an auspicious time to make purchases, especially purchases for a family. No doubt, it is during festivals that people spend a lot of money on various investments, remittances, and gifts.
Diwali, Gudi Padwa, Eid, and Dussehra are days when real-estate sales reach an all-year-round high. Diwali, the celebration of goodwill and homecoming is one where maximum spending on housing and real estate is witnessed in our country and the city of Pune is no exception.
Recently published quarterly housing reports by leading real estate consultancies highlight that the Pune market has made a mark with its remarkable resilience. According to reports, Pune showed a yearly sales growth of 45% and a quarterly growth of 13%. Pune and Mumbai contributed to 53% of the country’s overall residential sales in Q3 2022.
These figures stand high at a time when the world is battling with inflation in the aftermath of the Russia-Ukraine war. Inflation and fluctuating stock markets have affected every city and metro in the country and Pune is no exception. A lot of builders in the country have increased sale prices because of incurring high costs of construction. So what helped Pune pull off this remarkable feat?
Supply meets demand ratio:
Developers in the city, to begin with, reduced their supply to ensure that the number of unsold homes in the city narrows down naturally. As housing demand in the city remained extremely strong, the unsold inventory was reduced. This always benefits the market and is good for its overall prospects for the future.
Residential demand leading the game:
Most of Pune’s homebuyers are buying properties for their personal use. There is a need-based demand as buyers are buying property for end use. After the pandemic, the number of end-use buyers has increased by more than 40% in the prominent parts of Pune and Pimpri-Chinchwad.
Affordable housing and incentives:
When end-users are the primary buyer segment, housing prices cannot go through the roof. Affordable housing in Pune has been the driving force for residential demand in the city. The number of investors in the city is in equal proportion to or more than end-users. This has led to balanced pricing that fits the budget of buyers. At the same time, home loan interest rates are also not exorbitant, despite the recent hikes. These factors act as a great incentive for homebuyers to make their moves now rather than wait any longer.
Expanding employment base:
Pune’s employment base is constantly expanding, with the presence of IT, ITeS, manufacturing, hospitality, retail and various business support processing jobs on the rise in the city. And more jobs simply convert into more demand for housing. The Pune market is not just dependent on the Infotech industry but is also majorly driven by the manufacturing and services sectors. As a result, the housing demand in Pune is not restricted to just the areas around its IT Parks like Hinjawadi, Kharadi and the suburbs. It has spread into locations around the MIDC manufacturing belt, its various corporate office hubs, and major retail locations like Chakan, Hadapsar, Pimpri- Chinchwad and areas adjacent to Koregaon Park.
Considering the factors above, and the ongoing sales momentum, there’s no doubt that the demand for real estate will be adding to our festive celebrations!
No doubt Pune’s real estate will witness a spurt in home-buying activity in this season. And while sales momentum may lose steam after this, the city will keep up with most of its momentum because housing demand here is not seasonal but dictated by actual needs.
At RGS Realty, our homes built with goodness and perfection are the ultimate destination to enjoy festivals. They are designed to provide you utmost comfort and a plush lifestyle in all seasons. To know more about our projects and our team, visit https://www.rgsrealty.com/