REAL estate developers in Pune were sitting on an unsold stock consisting of nearly 1.39 lakh units as on March 31, 2020, as housing sales continued to decline during the last quarter of FY20. According to Real Insight: Q4FY20, a quarterly report published by Elara technologies-owned online property brokerage firm PropTiger.com, new launches also reduced significantly in Q4FY20 as liquidity concerns worsened amid the coronavirus outbreak in India.
Data available with the online property brokerage firm show that only 15,523 homes were sold in Pune during the January-March 2020 period as against 18,168 units during the same quarter in the previous fiscal. This was an annual fall in sales of 15 per cent. As against 14,950 fresh units that were launched in Q4FY19 in Pune, only 8,693 units were launched in Q4FY20, a decline of 42 per cent.
Pune real estate snapshot in Q4FY20
|Particulars||Number of units||Decline YoY|
|Launches||8,693||-42 per cent|
|Sales||15,523||-15 per cent|
|Inventory||138,781||-11 per cent|
Real Insight: Q4FY20
Unsold stock in Pune as on March 31, 2020, stood at 138,781 units, a decline of 11 per cent as compared to March 31, 2019. At the current sales velocity, builders in the city would take a little over two years to sell off the existing stock.
The coronavirus outbreak in the country has derailed all the plans of real estate developers in the city to drive up sales during the quarter. The impact of the outbreak would also be visible in the current quarter (Q1FY21), the report indicates.
The Maharashtra government’s recent move to reduce stamp duty by one per cent in Mumbai and Pune along with the RBI’s decision to cut the repo rate to 4.4 per cent was expected to support demand. However, the ongoing lockdown that has restricted people’s movement would impact sales and launches in the short term, says Dhruv Agarwala, Group CEO, Housing.com, Makaan.com, and Proptiger.com.
The affordable housing segment, shows the report, has been a key contributor to the overall housing sales in Pune during the quarter as 62 per cent of all homes sold during the quarter were units priced up to Rs 45 lakh. In terms of launches, 29 per cent of the new launches were meant for the affordable category. On the other hand, 63 per cent of the inventory stock in the city is also in the affordable category.
Average property values have also seen an increase of 4 per cent year-on-year. Currently, the average per square foot property rate in Pune is Rs 5,017 as against Rs 4,805 a year ago.