The Year 2023 promises to be robust one for Pune real estate market

The Pune real-estate market exhibited strength in 2022 witnessing a sharp increase in demand. The widening scope of job opportunities, restarting of offices along with work-from-home & hybrid work culture have been contributing to a growing housing demand for Pune.

Here is how the real estate experts summarize the entire year:

Ram Naik, Director, The Guardians Real Estate Advisory said, "Despite various macro-level challenges, the Pune residential real estate market has proven to be resilient. According to Magicbricks' PropIndex Report Q2, 2022, Pune experienced a significant increase in demand (from 3.9% in Q1, 2022 to 8.1% in Q2, 2022) and average prices (from 0.5% in the previous quarter to 1.3% in Q2, 2022). Supply decreased (from 2.2% to -2.0% in the current quarter). Factors such as the strategic location of the city and increasing job opportunities for newcomers are bolstering the demand for properties in Pune. Moreover, the government reforms in the real estate sector have also contributed towards a more optimistic outlook for Pune's housing market in 2023. These reforms have improved transparency and started a trend towards more regulation and orderly growth of the real estate sector in the city."

Rajendra Pate, President, NAREDCO Pune said, "Pune's real estate market has again shown its dominance in 2022 as demand surged considerably post the pandemic. Even after the hike in property prices, the growth momentum continued in Pune which highlighted the fact that there was a genuine demand in the market. In fact, the rising interest rates, higher stamp duty and 1% metro cess has not deterred the sentiments of the homebuyers in Pune. The housing demand has sustained in Pune on the back of several factors like high rentals, opportunities in the job market and relatively affordable homes than other markets. The developers too came forward and absorbed the burden of the homebuyers by offering attractive payment plans or by waiving the stamp duty and GST. The festive quarter witnessed a great traction for the Pune real estate market with sales rising by 15% in that period."
 
"Post the pandemic, the corporates have invited their employees back to office due to which the demand for rental housing too has seen a sharp surge as the floating population is back in the city. Also, the hybrid working model has prompted the homebuyers to look out for extra space. These factors too have made the real estate investment attractive for investors in Pune," Pate further added.
 
What lies ahead in 2023

"The Pune housing market is expected to remain robust in 2023 because of rising buyer demand and increased investment in infrastructure projects. With more new projects in the pipeline and investments from both local and out-of-town buyers, Pune's housing market is expected to remain active and develop further. For buyers, this could mean more housing options and lower property prices; for investors, it could mean new opportunities for capital gains and returns on investment (ROIs). It appears that Pune's real estate market has a bright future ahead, with a lot of promise," opines Naik.

"The increasing interest rates will temporarily impact the growth momentum of the Pune residential market. However, the demand for affordable housing will sustain in 2023 as well. The mid-segment and luxury home buyers will continue to invest in spacious homes in good projects with all lifestyle amenities. Townships and gated community projects too will continue to witness a sustained demand as post-pandemic homebuyers have realized the importance of healthy living, convenience and security that these projects offer. Overall in 2023, Pune’s housing market will see a strong thrust on affordable housing along with projects that focus on safety, security, convenience and a healthy lifestyle," adds Pate.