Real estate developers in Pune real estate market are offering festive incentives such as zero stamp duty, No EMI till possession as demand gradually tapers off in the IT hub of Maharashtra. According to developers and consultants, 2024 is the first time after COVID that festive offers are being doled out to prospective buyers.
According to developers, the Pune real estate market was under stress from the year 2015 to 2019, and Diwali offers were common.However, post Covid-19 as hybrid work culture took off, demand revived for larger apartments in Pune.
Owing to demand picking up after Covid-19, no offers were being given by developers but now with sales gradually slowing down, developers are doling out offers to attract buyers,a Pune- based developer told HT.com
It was only after the Covid-19 pandemic that several Mumbai and Bengaluru-based developers announced entry into the Pune real estate market. This includes players like Lodha, Dosti Realty, Adani Realty, Puravankara, Prestige Group among others.
“Pune real estate has taken a drastic turn where developers are giving out special offers during the ongoing festive season— something not seen post Covid. The focus is much more on the upper mid segment for 2 and 3 BHKs that caters to almost 70% of Pune’s residential sales. Special packages ‘No EMI for 24 months’, ‘Zero Stamp Duty’, fully furnished homes – these are tactics never used in Pune’s real estate market. This trend demonstrates a shift in market balance where even developers active in areas like Baner, Balewadi and Wakad are trying to boost sales through offering festive packages,” said Anurag Goel, Director, Goel Ganga Developments.
Also Read: Pune real estate market’s property registrations down by 33% YoY, stamp duty collections dip by 14%
Has the IT sector ‘slowdown’ impacted Pune’s real estate market?
Pune realtors did not dole out festive offers after COVID-19.
“However, this year things have changed and developers are holding special events where they are giving offers and discounts. There are developers giving spot offers, subvention plans in the form of flexi payments, no EMI till possession. The major reason behind this could be the slowdown in the IT sector and this is having an impact on the luxury market where apartments are priced at ₹2 crore and above. In the affordable price range between ₹50 lakh to ₹1.50 crore the impact is not much considering supply in this range is low post Covid-19,” said Pune-based Rahul Ajmera, developer at Vasupujya Corporation and a data analyst.
“If we look at the data on housing sales, the units sold in Q3CY25 have declined in Pune, Bengaluru and Hyderabad whereas Mumbai and Delhi NCR are in the positive. Hence, I am inferring it is the IT sector slowdown is impacting sales,” he said.
Pune real estate market is dependent on absorption from the IT sector and the manufacturing sector companies located in the outskirts of the city. For example, 1 BHK apartments in Pune priced at ₹50 lakh are generally located in areas such as Moshi, Chikli and Chakan where the demand is primarily by factory workers or ancillary staff working in manufacturing units, according to local brokers.
On the other hand, demand for 2 and 3 BHK units is high among working professionals especially among IT techies. The hybrid work culture is still prevalent which is why they prefer 2 and 3 BHK apartments.
On an annual basis, Pune Metropolitan Region sells around 80,000 to 90,000 residential units in the primary market in which more than 50% units are bought by IT professionals followed by those working in the manufacturing sector among others, a developer not wishing to be named said.
Also Read: Diwali 2024: Do festive offers matter to Mumbai’s crorepati homebuyers?
Pune real estate market sales decline: Report
In Pune, the number of homes registered between July to September quarter declined approximately 13% year-on-year to 18,749, while the value of the units sold during the period fell 8% to ₹13,788 crore. The city saw a total of 11,795 units launched during the quarter, according to a report released by real estate data analytics platform CRE Matrix.