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  • Pune witnessed 55% rise in new residential launches in Q3; sales grew 58% sequentially: JLL

    Published on October 30, 2020

    Pune : Pune witnessed 1,756 new unit launches in Q3 2020, an increase of 55% over the previous quarter, according to JLL Research. This strong growth was on a low base of Q2 2020 which was significantly impacted owing to the severe lockdown restriction in the wake of ongoing pandemic. Prominent locations such as Kharadi, Hinjewadi, Wakad and Hadapsar saw increased momentum and accounted for more than 50% of the launches during the quarter.

    With economic activities gradually getting back on track, the city is likely to see a strong recovery in sales after the slump in Q2 2020. Housing sales grew by 58% on a sequential basis clocking about 1,344 units. Homebuyers preferred projects from developers who have an established track record and which are closer to prominent office locations. There are also a higher number of enquiries for completed and nearing completion projects as compared to those which have recently launched. There is growing acceptance of digital platforms amongst homebuyers to complete their home purchase process from raising an enquiry to making the payment through the developer’s online window.                       

     Q2 2020Q3 2020Growth (%) – Q3 2020 over Q2 2020
    Launches (units)1,1351,75655%
    Sales (units)8511,34458%

    Source:  Real Estate Intelligence Service (JLL), 2020, JLL Research

    “Pune witnessed a growth of 55% in terms of new launches over the last quarter. Developers continued to align new supply with demand and majority of these launches were in affordable and mid segments. Further the city has also witnessed healthy traction in the luxury segments which was earlier not visible ” said Sanjay Bajaj, Managing Director, Pune, JLL India. “In the subsequent quarters, the translation of demand into sales will primarily hinge on enhanced consumer confidence, which in turn depends upon the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large.” “Pertaining to residential, the scenario for Pune has improved significantly in the last few months, sales has certainly increased owing to reduction in the stamp duty by the government, low bank intrest rates, attractive schemes by builders, and competitive rates. The onset of the festive season will help drive sales, and in addition to the reasons stated above we have reached approximately 75% of sales of pre COVID levels and this quarter will see steady growth as well. Recent trends indicate projects that are near completion stage are witnessing larger traction. Buyers are purchasing assets from more renowned developers with a proven track record, added product value and ability to deliver,” he added.

    Residential market activity all over India, is also being supported by renewed interest from NRIs in Q3 2020,  resulting in more pent up demand in the market and increased enquiries received by developers.

    “The further easing of lockdown restrictions and the upcoming festive season might help in bringing buyers back to the market. An assessment of years to sell reveals that the expected time to liquidate stock has increased from 3.6 years in Q2 2020 to 4 years in Q3 2020. While the residential space remains unpredictable, favourable supply dynamics could deliver potential upside for both homebuyers and developers in the medium-term,” said, Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

    Focus on mid and affordable segment continues in the country

    New launches were restricted with 12,654 units launched in the third quarter, a decline of 14% quarter-on-quarter. Developers focused on completion of under construction projects and clearing their existing inventory. Hyderabad and Mumbai accounted for over 60% of the total new launches in the quarter. The drop in new launches was driven by Bengaluru, which witnessed a substantial decline of over 80% as compared to Q2 2020. Development focus on mid and affordable segments continued in Q3 2020 with nearly 75% of the new launches in the sub INR 1 crore category. Moving ahead, the focus on these price segments is expected to continue with developers focusing to reap the benefits of strong pent up demand.

     Q2 2020 (in units)Q3 2020 (in units)Growth (%) – Q3 2020 over Q2 2020
    Bengaluru6,1351,074-82%
    Chennai1821,487717%
    Delhi NCRNegligible699
    Hyderabad5,0345,3967%
    KolkataNegligibleNegligible
    Mumbai2,2942,242-2%
    Pune1,1351,75655%
    Total14,78012,654-14%

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