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Pune July – Dec 2014
Residential July – Dec 2014
2014 witnessed a sharp drop in the demand for residential properties - Absorption fell by 10%
RESIDENTIAL
5% rise in price Y-O-Y in 2014 32% drop in H2 2014 vs. H2 2013
H2 2013 – 24,650 units H2 2014 – 16,700 units
13% rise in H2 2014 vs. H2 2013 H2 2013 – 17,860 units H2 2014 – 20,150 units
RESIDENTIAL
Residential Market in Pune in Year 2014
Sales volume
fell by
10%
34,870 units sold vs. 38,800 units in 2013
New launches dropped
by 26%
33,580 units launched vs. 45,370 units in 2013
East accounted for maximum launches while North gained traction due to its proximity to Chakan
RESIDENTIAL
579
units
2
16 u
nits
28
1 un
its
7,00
3 un
its
3,84
5 un
its
5,21
4 un
its
5,73
3 un
its
3,43
3 un
its
2,93
1 un
its
5,82
0 un
its
3,30
7 un
its
4,48
5 un
its
5,51
8 un
its
6,08
3 un
its
3,78
8 un
its
RESIDENTIAL
Actual sales volume in 2014 has surpassed our previous estimates
463
units
39
6 un
its
416
units
4,60
3 un
its
3,79
8 un
its
4,96
5 un
its
4,61
0 un
its
3,82
2 un
its
5,48
0 un
its
4,26
3 un
its
3,53
4 un
its
4,64
4 un
its
3,91
9 un
its
3,16
8 un
its
4,64
6 un
its
Will take nearly 2 years to offload the current unsold inventory
RESIDENTIAL
West Pune currently best performing with the lowest QTS and minimum age of unsold inventory
RESIDENTIAL
Central
North
West
South
East
Total Unsold Units 67,557
as on December 2014
Momentum in price rise has tapered down in the last 6 months; Chances of a moderate 4% hike going forward
RESIDENTIAL
Concluding Remarks
Residential demand heads downhill in 2014; second half of the year posts better results
Newer launches plummet by whopping 26%; developers cry caution
Increase in FSI could drive housing growth; realtors hope for a government nod
RESIDENTIAL
Going forward
Launches likely to fall by 21% in the Jan – Jun 2015 period Sales to improve marginally by 13% at 16,630 units during Jan –
June 2015 Price to increase moderately during Jan – Jun 2015 with a 4%
increase Y-O-Y
RESIDENTIAL
July – Dec 2014
Office
Vacancy levels drop to 16.5% during Jul – Dec 2014
OFFICE
24.8% 23.4%
21.5% 21% 20.1%
16.5% 16.4%
2014 sees a never-before supply drop to the tune of 29%
OFFICE
Manufacturing and other sectors lose ground as IT / ITeS makes a comeback
y
OFFICE
PBD East has seen a gradual rise accounting for nearly one-third share during Jul – Dec 2014
y
OFFICE
39,8
75 s
q.ft.
65,7
20 s
q.ft.
276,
699
sq.ft
.
336,
500
sq.ft
.
143,
000
sq.ft
.
171,
849
sq.ft
.
129,
526
sq.ft
. 652,
000
sq.ft
.
577,
800
sq.ft
.
948,
000
sq.ft
.
Rentals projected to rise by 19% Y-O-Y during the next 6 months
y
OFFICE
Concluding Remarks
• Restricted supply and robust absorption pushed the rents up by 15% Y-O-Y in Jul - Dec 2014
• Consolidation and Expansion – the new mantra for Pune’s office market
• Realtors breathe easy as vacancy levels plunge; ready to move in spaces take the larger share
Going Forward
Policy announcements on REITs and FDI to push leasing activity across Pune
Pune is likely to witness a robust supply of new office space
during Jan – Jun 2015; a 28% jump on a Y-O-Y basis Absorption likely to be 2.2 mn.sq.ft. during Jan – Jun 2015;
marginally higher than that of H1 2014
Weighted average rental to rise by a whopping 19% Y-O-Y basis during Jan – Jun 2015
