Pune Real Estate Market Analysis 2024 | Housing Sales Drop, Rising Property Prices & Future Opportunities
Pune real estate market is witnessing a 6% drop in housing sales this year due to inflation, market saturation, and rising property prices. But what does this mean for homebuyers and the future of Pune’s housing sector? In this video, we’ll break down the key reasons behind this slowdown and how it impacts buyers and developers.
Why is Pune Real Estate Slowing Down? 1. Rising GST on FSI Purchases: Developers now have to pay 18% GST on premium FSI purchases, increasing construction costs and directly affecting property prices. 2. Increased Construction Material Costs: Prices of cement and steel have significantly risen, adding pressure on developers. 3. Post-COVID Shift to Larger Homes: Demand for bigger homes post-COVID caused prices to rise, reducing affordability for buyers. 4. Delayed New Project Launches: Approvals are delayed due to dual elections, slow environment clearance processes, and lack of ease of doing business in government machinery. 5. Civic Issues: Despite rising prices, Pune continues to face challenges like: • Traffic congestion and poor road infrastructure. • Water supply issues, including contaminated water in societies. • Limited public transport options.
Actions the Government & Corporations Should Take:
To address these issues and restore buyer confidence, the government and local corporations must: • Increase budgets for infrastructure development. • Improve public transport and develop wider roads. • Ensure faster approvals for new projects. • Enhance water supply systems to address contamination issues. • Allocate resources to resolve traffic management and pedestrian infrastructure.
Developers’ Role:
Developers should consider cutting margins temporarily to make homes more affordable for buyers. Collaboration with the government to address approval delays and cost pressures is essential.
Opportunity for Homebuyers:
Despite the slowdown, this phase presents a unique opportunity for serious buyers. Conduct proper research, as this is the time to negotiate better deals. With demand set to rebound in the next 1-2 years, prices are likely to rise further.
If you’re planning to invest in Pune real estate or want to understand ho