Maharashtra Government Rakes in INR 3,226 Cr in Stamp Duty from Pune in 8 Months, Pune registers over 13,000 homes in August 2023

Pune, September 13, 2023: Knight Frank India, in its latest assessment noted that property registrations in Pune district, in August 2023, rose by 99% year-on-year (YoY) with a total of 13,021 units being registered against 6,544 registrations in August 2022. Stamp duty collections in August 2023 also witnessed substantial growth, rising by an impressive 82% YoY to reach a total of INR 423 Crores. Furthermore, the cumulative value of the registered properties in August 2023 amounted to INR 10,613 Crores.

Table: Property registrations, Value of property and Stamp duty collection

Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank Research

On a year-to-date (YTD) basis, the city has recorded a total registration of 91,023 properties, reflecting a modest 1% growth compared to the previous year. However, stamp duty collections have shown a more substantial increase of 6.6%, reaching INR 3,226 crores. Concurrently, the overall value of registered properties in Pune has exhibited significant growth, surging by 25% year-on-year to reach INR 69,015 crores during the same period. Homes costing more than INR 2.5 Crores also saw an uptick in actual number of properties registered with 130 residential units being registered in this category in August 2023 as against 65 units in this category registered in August 2022.

Table: Property registrations, Value of property and Stamp duty collection

Increase in purchase of Higher Value Segment (above INR 1 crore) in August 2023

In August 2023, residential units priced between INR 25 lakhs and INR 50 lakhs were the most sought-after, comprising of 34% of all housing transactions. This ticket size range dominated housing demand during the month. Similarly, in August 2023, properties priced between INR 50 lakhs and INR 1 crore accounted for 32% of the market share, establishing itself as the second-preferred ticket size.

Interestingly, the higher value segment, comprising properties priced at INR 1 crore and above, experienced growth in its market share. This segment’s share increased from 9% in August 2022 to 11% in August 2023, indicating a rising preference for properties in this price range. Homes costing over INR 2.5 Crores saw a rise of over 99% in August 2023 with 130 properties being registered in the month as against 65 units in August 2022. This jump is a strong indication of the strength in the market and the economic confidence demonstrated by end users.

Share of ticket size for residential property transactions

Higher demand for larger apartments sustains

In August 2023, there was a strong demand for apartments within the range of 500 to 800 sq ft, constituting close to half of all property transactions registered in the month, accounting for a substantial 47% share. Apartments with an area under 500 sq ft also garnered significant attention, comprising 25% of transactions in August 2023, making it the second most preferred apartment size.

Notably, there was a visible shift towards larger apartments, with those exceeding 800 sq ft experiencing an increase in market share from 26% in August 2022 to 29% in August 2023. Moreover, the preference for even larger properties was evident, as the share of apartments sized over 2,000 sq ft grew from a mere 1% in August 2022 to a notable 4% in August 2023. This suggests a growing inclination among homebuyers for spacious and larger living spaces.

Share of area for residential property transactions

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The Pune residential market continues to thrive, driven by a persistent aspiration for homeownership and a favorable affordability landscape within the city. Moreover, the growing preference among homebuyers for spacious properties further enhances the dynamism of Pune’s real estate sector. Additionally, ongoing infrastructure developments and increasing economic activities consistently bolster the resilience of Pune’s housing market.”

Central Pune accounted for 72% of total residential transactions in August 2023

In August 2023, Central Pune, which encompasses Haveli Taluka, Pune Municipal Corporation (PMC), and Pimpri Chinchwad Municipal Corporation (PCMC), continued to dominate residential transactions, maintaining its significant share at 72%. This percentage remained largely unchanged compared to the same period in the previous year. West Pune, covering regions like Mawal, Mulshi, and Velhe, held the second-largest share of residential transactions, accounting for 16% of the total in August 2023.

Conversely, North, South, and East Pune collectively held a smaller share of residential transactions, comprising 12% of the total in August 2023.

Share of micro markets for residential property transactions

Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR); Knight Frank India Research

55% of homebuyers in 30- 45 years age group

Homebuyers in the age group of 30 – 45 years constituted the largest buyer segment, holding a substantial 55% share of the market. Those under the age of 30 accounted for 22% of the market share, while homebuyers in the 45 – 60 years age category represented 17% of the market.

This distribution can be attributed to Pune’s status as a robust end-user market, where individuals often rely on bank financing to facilitate their home purchases. Consequently, there is a strong presence of professionals in the market, particularly in the 30 – 45 years age bracket, which is the largest segment.

Table: Share of age of buyers