pune - india real estate outlook report
TRANSCRIPT
![Page 1: Pune - India Real Estate Outlook Report](https://reader030.vdocument.in/reader030/viewer/2022020123/55a646ab1a28ab4f2e8b4624/html5/thumbnails/1.jpg)
Pune July – Dec 2014
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Residential July – Dec 2014
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2014 witnessed a sharp drop in the demand for residential properties - Absorption fell by 10%
RESIDENTIAL
5% rise in price Y-O-Y in 2014 32% drop in H2 2014 vs. H2 2013
H2 2013 – 24,650 units H2 2014 – 16,700 units
13% rise in H2 2014 vs. H2 2013 H2 2013 – 17,860 units H2 2014 – 20,150 units
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RESIDENTIAL
Residential Market in Pune in Year 2014
Sales volume
fell by
10%
34,870 units sold vs. 38,800 units in 2013
New launches dropped
by 26%
33,580 units launched vs. 45,370 units in 2013
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East accounted for maximum launches while North gained traction due to its proximity to Chakan
RESIDENTIAL
579
units
2
16 u
nits
28
1 un
its
7,00
3 un
its
3,84
5 un
its
5,21
4 un
its
5,73
3 un
its
3,43
3 un
its
2,93
1 un
its
5,82
0 un
its
3,30
7 un
its
4,48
5 un
its
5,51
8 un
its
6,08
3 un
its
3,78
8 un
its
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RESIDENTIAL
Actual sales volume in 2014 has surpassed our previous estimates
463
units
39
6 un
its
416
units
4,60
3 un
its
3,79
8 un
its
4,96
5 un
its
4,61
0 un
its
3,82
2 un
its
5,48
0 un
its
4,26
3 un
its
3,53
4 un
its
4,64
4 un
its
3,91
9 un
its
3,16
8 un
its
4,64
6 un
its
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Will take nearly 2 years to offload the current unsold inventory
RESIDENTIAL
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West Pune currently best performing with the lowest QTS and minimum age of unsold inventory
RESIDENTIAL
Central
North
West
South
East
Total Unsold Units 67,557
as on December 2014
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Momentum in price rise has tapered down in the last 6 months; Chances of a moderate 4% hike going forward
RESIDENTIAL
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Concluding Remarks
Residential demand heads downhill in 2014; second half of the year posts better results
Newer launches plummet by whopping 26%; developers cry caution
Increase in FSI could drive housing growth; realtors hope for a government nod
RESIDENTIAL
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Going forward
Launches likely to fall by 21% in the Jan – Jun 2015 period Sales to improve marginally by 13% at 16,630 units during Jan –
June 2015 Price to increase moderately during Jan – Jun 2015 with a 4%
increase Y-O-Y
RESIDENTIAL
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July – Dec 2014
Office
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Vacancy levels drop to 16.5% during Jul – Dec 2014
OFFICE
24.8% 23.4%
21.5% 21% 20.1%
16.5% 16.4%
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2014 sees a never-before supply drop to the tune of 29%
OFFICE
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Manufacturing and other sectors lose ground as IT / ITeS makes a comeback
y
OFFICE
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PBD East has seen a gradual rise accounting for nearly one-third share during Jul – Dec 2014
y
OFFICE
39,8
75 s
q.ft.
65,7
20 s
q.ft.
276,
699
sq.ft
.
336,
500
sq.ft
.
143,
000
sq.ft
.
171,
849
sq.ft
.
129,
526
sq.ft
. 652,
000
sq.ft
.
577,
800
sq.ft
.
948,
000
sq.ft
.
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Rentals projected to rise by 19% Y-O-Y during the next 6 months
y
OFFICE
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Concluding Remarks
• Restricted supply and robust absorption pushed the rents up by 15% Y-O-Y in Jul - Dec 2014
• Consolidation and Expansion – the new mantra for Pune’s office market
• Realtors breathe easy as vacancy levels plunge; ready to move in spaces take the larger share
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Going Forward
Policy announcements on REITs and FDI to push leasing activity across Pune
Pune is likely to witness a robust supply of new office space
during Jan – Jun 2015; a 28% jump on a Y-O-Y basis Absorption likely to be 2.2 mn.sq.ft. during Jan – Jun 2015;
marginally higher than that of H1 2014
Weighted average rental to rise by a whopping 19% Y-O-Y basis during Jan – Jun 2015