Pune’s residential real estate industry has registered a growth of 38 per cent in 2021 on a year-on-year (YoY) basis. Property consultant Knight Frank’s semi-annual report on Wednesday afternoon showed that the area had sold 37,218 units last year, while a total of 3.8 million square feet of office space was transacted.
The new launches witnessed a growth of 16 per cent as compared to last year’s 40,489 units, the report said. 19,744 units were finalized in the second half of the previous year, while 70 per cent of the office space transactions were done in the second half.
The report pointed out that Pune saw 2.7 million sq ft (mn sqft) of office space transactions in the second half (H2) of 2021, with the highest YoY growth during the period among the top eight cities. A total of 3.8 million square feet of office space was transacted in 2021, of which 70 percent were transacted in H2 2021. Average deal size in H2 2021 increased by 11 per cent YoY to 58,685 sq ft compared to H2 2020.
On the rental aspect, the city witnessed a marginal rent increase of 3 per cent quarter-on-quarter (QoQ) during Q4 2021. The BFSI sector emerged as the main driver for the Pune office market with a transaction share of 35 per cent. , followed by manufacturing and co-working with a transaction share of 19 percent and 18 percent respectively in H2 2021.
In the residential segment, Pune saw the sale of 19,744 housing units in H2 2021. CY 2021 saw a total of 37,218 home sales, making Pune the third largest residential market in the country. The average price level was stated to be INR 4,000 per sq ft.
The South and East markets also increased sales volume during the second half of 2021, contributing 38 percent and 24 percent of total sales, respectively. The western market shrank to 22 per cent in the second half of 2021, although it remained strong with a market share of 35 per cent in the second half of 2020. The price level remained unchanged in the second half of 2021.
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