Pune’s residential real estate market continues to be in a state of stress: Rohit Gera

By Accommodation Times Bureau

Gera Development on Wednesday presented Gera Pune Residential Realty Report for July 2018, which revealed that the steep drop in the number of new apartments being launched has led to a reduction in the total inventory under development as well as a reduction in the absolute number of apartments available for sale.

From a peak inventory available for sale at 107,402 apartments in June ‘16 the inventory available for sale currently stands at 79,546 apartments.  This puts unsold inventory at approximately Q1 2015 levels.  The current inventory available for sale at 26.29% (79,564 apartments) is just below the Dec ‘13 unsold inventory which stood at 26.34% (55,377 apartments). On assessing the new launches of inventory by zone, Zone 1 has seen a reduction of 40% in the total apartments being launched for a period of ’17 – ‘18 this comes on the back of a 43% reduction for the same period between ’15 – ’16 and ’16 – ’17.

This steep 2-year drop is from 18,563 apartments launched in Zone 1 between July ’15 – June ’16 to 6,351 apartments in July ’17 – June ’18

The result of the slowdown in the realty sector is clearly visible in the number of new apartments being launched. On an annual basis, the drop from the year July ’14-June ’15 to the year July ’17 – June ’18 new apartment launches have dropped by nearly 50% from 110,824 apartments to 56,410 apartments. The alarming factor though is, on assessing this on a year on year basis, there is a drop of 7.93% (8,788 apartments) between ’14-’15 to ’15 – ‘16, then a drop of 19.71% (20,114 apartments) between ’15-’16 and ’16 – ‘17, and a huge drop of 31.14% (25,512 apartments) between ’16 – ’17 and ’17 – ’18.  Looking at the data on a 6 monthly basis shows a slight increase in the apartments launched in the period of Jan ’18 to June ’18 at 31,618 from 24,792 apartments between July ’17 to December ’17; this may be a sign of green shoots, however, doing a period for period comparison also shows this as the lowest number of apartments brought to market for the Jan to June period over the past 4 years.





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