REAL ESTATE worth Rs 1.05 lakh crore remains unsold in ongoing as well as completed real estate projects in Pune, as on September 2019, according to rating agency ICRA. A press release issued by the agency stated that the number of unsold units in the Pune market is 56 per cent for total ongoing projects.
Pune’s real estate market, the release has stated, showed signs of slowdown after 2012-13. However, the changing financial environment and weak demand has affected real estate prices. “Further, deferment of purchases from buyers and preference for ready apartments is also a trend observed in Pune in line with other key markets in the country and the same is putting pressure on developers’ cash flow position,” the release read. Pune’s market, which used to attract investors, has also seen a slump in such demand. According to the release, Anand Kulkarni, assistant vice-president and associate head, corporate rating, ICRA, said significant pressure on key user industries and waning investor demand has impacted the residential real estate market in Pune.
Kulkarni said the sales will remain slow in the near future also. “The market is undergoing structural change and unorganised local developers are struggling to adjust with the changing operating environment,” Kulkarni stated in the press release.
The ICRA has analysed 2,800 ongoing projects in Pune metropolitan region, with a total of 2.8 lakh units and over 178 million sq ft of carpet area. West and east are the largest micro markets in Pune, primarily driven by considerable employment opportunities.
Connectivity to Mumbai-Pune Express Highway and airport are the key drivers for the west and east markets. North and southwest micro markets are primarily driven by industrial establishments and affordability related demand. Southeast micro market supply is driven by the presence of large townships and few IT/ITeS establishments.