Gera Developments, pioneers of the real estate business and creators of premium residential and commercial projects in Pune, Goa, and Bengaluru, have released the January 2021 edition of their bi-annual report, The Gera Pune Residential Realty Report. The census-based study of the Pune Residential Realty Market is based on primary & proprietary research conducted by Gera Developments and covers all existing projects in a 30 Km radius of the city centre.
The performance of the residential realty sector in 2020 has been strongly impacted by the Covid-19 pandemic and consequent lockdowns. Further, developers also dealt with labour shortages and incurred additional costs in light of the migrant crisis. However, despite the lockdown, the Pune residential real estate market seems to have climbed a wall of worry and has posted very encouraging numbers across the board. The entire year of 2020 can be categorized into two halves, H1 2020 in which the residential realty sector bore the full brunt of the consequences of the pandemic and the lockdowns, and H2 2020 in which it bounced back and is on the path of the recovery. Owing to the rise in inventory, prices, new launches and sales numbers in H2 2020, the market has put behind the uncertainty posed by the Covid-19 situation.
The impact is evident across all parameters. Sales are back to normal and are at par with pre-COVID levels. Average prices across the city have risen by 3.5%. Inventory is the lowest in six years in both, absolute and percentage terms. The total number of projects has fallen by 15% compared to five years ago, and a number of new units launched have fallen by 40%, which was expected. In the same period, projects launched in the premium plus (between Rs 5,721 & Rs 7,151 psf) and luxury (above Rs. 7,151 psf) segments increased.