Pune draws highest mid segment home sales in the country
Pune, 3rd October 2024: Knight Frank India, in their latest report – India Real Estate: Residential and Office Q3 2024 (July – September 2024) cited that Pune recorded the highest residential sales amongst the eight Indian cities in the ticket size category of INR 5mn to 10mn with 5,946 units being sold during the period occupying 45% of total sales in the city. Pune also ranked third in terms of residential units being sold during the quarter surpassing NCR with 13,200 units being sold in the city. 15,049 units were launched in the city recording a staggering YoY growth of 42% which is the highest in terms of annual percentage growth across the eight Indian markets in the country.
Market Summary: Top Eight Indian Cities
| Sales | Launches | ||||||||||||
| City | Q3 2023 | Q3 2024 | % Change (YoY) | Q3 2023 | Q3 2024 | % Change (YoY) | |||||||
| Mumbai | 22,308 | 24,222 | 9% | 19,512 | 23,677 | 21% | |||||||
| Bengaluru | 13,169 | 14,604 | 11% | 13,353 | 13,966 | 5% | |||||||
| Pune | 13,079 | 13,200 | 1% | 10,568 | 15,049 | 42% | |||||||
| NCR | 13,981 | 12,976 | -7% | 16,108 | 13,128 | -19% | |||||||
| Hyderabad | 8,325 | 9,114 | 9% | 11,034 | 10,902 | -1% | |||||||
| Ahmedabad | 4,108 | 4,578 | 11% | 5,996 | 5,702 | -5% | |||||||
| Kolkata | 3,772 | 4,309 | 14% | 4,978 | 3,782 | -24% | |||||||
| Chennai | 3,870 | 4,105 | 6% | 4,000 | 4,273 | 7% | |||||||
| Total | 82,612 | 87,108 | 5% | 85,549 | 90,479 | 6% | |||||||
The average weighted residential price witnessed an increase of 5% YoY during Q3 2024 with a value of INR 4,686/- sq ft.
During Q3 2024, 23% of the residential sales were in the ticket size of INR 10mn and above registering a YoY growth of 30%. The ticket size below INR 5mn constituted 32% of the overall residential sales in the market.
Ticket-size split of sales
| Ticket Size Categories | <5 mn | 5-10 mn | 10 mn> | Total | |||||
| Q3 2024 | 4,249 | 5,946 | 3,005 | 13,200 | |||||
| YoY % change | -9% | -2% | 30% | 1% |
Pune recorded office space transactions of 2.6 mn sq ft in Q3 2024. Office completions in the city grew by 531% which is the highest amongst the top eight Indian cities to 2.7 mn sq ft in Q3 2024 from 0.4 mn sq ft in Q1 2023. The city witnessed rental value appreciation of 3% YoY, taking the aggregated rent to INR 75 per sq ft/ month.
| Office Transactions | Completions | ||||||||||||||
| (Million Square Feet) | (Million Square Feet) | ||||||||||||||
| Cities | Q3 2023 | Q3 2024 | % Change YoY | Cities | Q3 2023 | Q3 2024 | % Change YoY | ||||||||
| Bengaluru | 2.1 | 5.3 | 158% | Hyderabad | 5.3 | 4.2 | -21% | ||||||||
| NCR | 2.5 | 3.2 | 26% | Pune | 0.4 | 2.7 | 531% | ||||||||
| Mumbai | 3.2 | 2.7 | -17% | Bengaluru | 4 | 2.5 | -38% | ||||||||
| Pune | 3 | 2.6 | -14% | NCR | 0.2 | 1 | 409% | ||||||||
| Chennai | 1.9 | 2.6 | 35% | Mumbai | 0.3 | 0.8 | 167% | ||||||||
| Hyderabad | 2.9 | 2.2 | -26% | Ahmedabad | 0.3 | 0.3 | -14% | ||||||||
| Ahmedabad | 0.2 | 0.3 | 69% | Chennai | 0.1 | 0 | -83% | ||||||||
| Kolkata | 0.3 | 0.2 | -38% | Kolkata | 0.8 | 0 | -100% | ||||||||
| All cities | 16.1 | 19 | 18% | All Cities | 11.5 | 11.5 | 0% | ||||||||
Pune recorded the highest office leasing activities from Global Capabilities Centre in the city at 1.1 mn sq ft during Q3 2024 constituting 41% of the total office space transactions in the city. India facing business witnessed a staggering YoY growth of 191% from 0.3 mn sq ft in Q3 2023 to 0.8 mn sq ft of transactions in Q3 2024. Third party IT services witnessed 0.3 mn sq ft of transactions in Q3 2024. Flex office spaces witnessed a YoY growth of 83% from 0.24 mn sq ft transactions in Q3 2023 to 0.45mn sq ft in Q3 2024.
| End-User Licensee/Buyer | GCC | India Facing Business | Third Party IT Services | Flex | Total | ||||||
| Area transacted in mn sq ft | 1.1 | 0.8 | 0.3 | 0.45 | 2.65 |
Vilas P Menon, National Director – Occupier Services, Capital Markets & Branch Head – Pune, Knight Frank India said, “The thriving technology & manufacturing ecosystem in Pune has led Global Capabilities Centre dominate leasing activity in the city. The market outlook for Pune remains optimistic, the city saw a staggering annual growth in completions which will further boost office supply in the coming months. The surge in new projects being launched reflects developers’ confidence in Pune’s market potential. Residents are increasingly opting for larger homes and apartments with dedicated workspaces, reflecting their evolving lifestyles. Gated communities with amenities and green spaces also remain in demand, emphasizing buyers’ preference for balanced, comfortable living environments. With its supportive business environment, solid economic foundations, and continuous infrastructure development, the city continues to be a compelling destination for both domestic and international investors.”
