Pune’s residential real estate sector demonstrated a notable 38 percent year-on-year growth in 2021, as per the latest half-yearly report from property consultant Knight Frank released on Wednesday. The region recorded the sale of 37,218 units in the past year, while office space transactions totaled 3.8 million square feet.
New launches saw a 16 percent increase, introducing 40,489 units in the same period. The latter half of the year finalized 19,744 units, with 70 percent of office space transactions occurring in the second half.
The report underscores Pune’s prominence in office space transactions, with 2.7 million square feet transacted in the second half of 2021, reflecting the highest year-on-year growth among the top eight cities. The total volume for office space transactions in 2021 reached 3.8 million square feet, with 70 percent transacted in the latter half. The average deal size increased by 11 percent year-on-year, reaching 58,685 square feet in the second half of 2021 compared to the same period in 2020.
Regarding rentals, Pune experienced a slight quarter-on-quarter rent increase of 3 percent during Q4 2021. The BFSI sector emerged as the primary driver of the Pune office market, accounting for 35 percent of transactions, followed by manufacturing and co-working with transaction shares of 19 percent and 18 percent, respectively, in the second half of 2021.
In the residential segment, Pune saw the sale of 19,744 housing units in the latter half of 2021, contributing to a total of 37,218 home sales in the entire year. Pune ranks as the third-largest residential market in the country, with an average price level reported at INR 4,000 per square foot.
The south and east markets led sales volumes during the second half of 2021, contributing 38 percent and 24 percent, respectively, to the total sales. The west market’s share declined to 22 percent in the latter half of 2021, compared to a strong position with a 35 percent market share in the same period in 2020. However, the price levels remained unchanged in the latter half of 2021.
