Recovery witnessed in Pune realty market

Pune’s real estate market has already started showing the signs of recovery. The sales volumes for residential units in Pune have already witnessed growth for FY2017-18. However, there continues to remain a sluggishness in the real estate industry in the city as per reports. Experts feel that this will steadily pass with the market settling down now after the twin impact of RERA and GST.

According to reports, registration figures for property by the end of March, 2018, touched a decent 21, 93, 149 documents. The State even earned Rs. 26, 494.91 crore in revenues accordingly which exceeded its previously set target of Rs. 23, 000 crore. More than 80% of registered documents cover sales deeds of property.

This is a major increase as compared to the previous year when 21, 22, 592 documents were registered.

Industry experts are of the opinion that the months of June 2017 and March 2018 witnessed swift property sales in Pune. Sales in June were spurred majorly by the pre-GST effect and sales went up in March on the back of positive real estate sentiments amongst buyers. Sales figures remained a little sluggish in some other months but things look good overall.

MahaRERA and GST were the two major reforms that were introduced in 2017. GST brought in much needed uniformity in terms of the tax structure while MahaRERA introduced greater transparency and accountability in the sector. Several real estate developers are now using available funds to ensure project completion before taking up new project launches. Demand is picking up and more supply in the sector will lead to the market picking up once again as per experts. There may be a slight correction in prices in Pune going forward as developers attempt to clear unsold inventory, making it a buyer’s market and increasing sales volumes in turn.