Your browser version is 8.0 and the minimum required version for this
website is 9.0 So please use IE 9+.
click here to upgrade IE
Facebook Icon
Twiiter Icon
Youtube Icon
Google Plus Icon
LinkedInIcon
Call:   +91 89 2854 1424


Gera in News
 
 
 

Gera Pune Realty Report pegs Pune realty growth at 25.26% for 2013

Rediff.com - 21 February, 2014

The systematic breakup of the report reflects the growth of the market from 209,521 units spread across 1813 projects.

Gera Developments, one of the pioneers of the real estate business in Pune and the creators of premium residential and commercial projects in Pune and Goa released the Gera Pune Realty Report for the period July 2013 to December 2013. The detailed report, an established industry benchmark highlights the overall sense of controlled optimism seen in the Pune real estate market for the numerous projects at various stages of construction across the Pune Metropolitan Region.

The systematic breakup of the report reflects the growth of the market from 209,521 units spread across 1813 projects as on December 2012 to 262,438 units spread across 2335 projects in December 2013. The overall market has grown by 56.7% in the last 2 years - from 167,460 units in December 2011 to 262,438 units in December 2013.

The Gera Realty Report Pune for the period July 2013 to December 2013 gives an in-depth view of the Pune Realty market indicating an increase in supply through the launch of 41607 units of which 19,209 units were in new projects while 22,398 units were added by way of new phases in existing projects. Also over the last 6 months, the average market price has risen from an average of Rs. 4464 per square foot up to Rs. 4804 per square foot reflecting an increase of 7.66% for the second half of 2013. The average price a year ago was Rs. 4211 per square foot, the YoY increase from Dec '12 to Dec' 13 has been 14.13%. Both the six monthly & yearly average market price have increased significantly, after going through a short term correction.

Rohit Gera, Managing Director, Gera Developments while commenting on the report said, "The Pune residential market on the whole seems to be in equilibrium and this has contributed to the increase in prices. The market expansion of only 4.12% in the second half of 2013 as compared to an expansion of 20.3% in the first half indicates that developers have slowed down project launches in light of the large number of launches in the first half of the year as well as the marginal reduction in off take of newly launched projects. It is this approach that has given the market a sense of controlled optimism as far as the supply side is concerned.Last year we predicted an increase of 13% - 17% in the average market price and the year ended at 14.13%. This year our prediction range is widened to 13% - 18%."

Gera further added, "While the overall market has expanded over the past year, concerns of developers being under pressure do not seem to be warranted as the overall sell out of stock is nowhere near any cause for concern. Further, the steady increase in prices over the last 6 and 12 months also indicates that there is momentum in the market. On analyzing the price points across the market, there is a clear trend of larger apartments selling at higher prices. 28.71% (11,948) of the 41,607 new units launched are priced Rs. 75 lakhs or greater. The sellout for higher sized units is 71% compared to 81% for the lower sized units. Basis our findings it is clear that both West & East Pune are seeing equal growth. We have seen that while the percentage of unsold stock continues to be in a reasonable range of equilibrium, the absolute levels have increased and as such, a seismic event will lead to greater volatility and sharper price corrections, however, the possibility of such an event seems relatively low from the current perspective."

The total unsold stock of 55,684 is approximately 8 months of inventory (given the current rate of sales) which is a very comfortable situation from an inventory overhang perspective and doesn't indicate the likelihood of prices dropping. The 501 sf to 750 sf segment has the maximum number of unsold apartments (15,855), followed closely by the 751 to 1000 sf segment (15414 unsold apartments). During the 6 month period, the 1251-1500 sf segment saw a 16.46% jump, the 1501-2000 sf segment saw a 7.7% jump and the segment above 2001 square foot saw a mere 2.6% jump in the unsold stock.

Of the unsold stock roughly 50% of the stock is below the 40 lakhs cost bracket (53% in Jun-13) while 83% of the stock is under 75 lakhs (87% in Jun-13).The average rate across all micromarkets put together is Rs. 4806 per square foot. There is a change in the top 10 highest gainers and bottom 10 lowest gainers with prices depreciating in Vimannagar/Yerawada.

In conclusion, the residential property market in Pune has maintained its momentum even in a challenging economic environment and managed to outshine several key markets in the last 2 years. The market has seen tremendous diversification in terms of types of projects being launched and continues to offer a variety of options to investors as well. The spread of organized retail, constantly changing city dynamics and demographics coupled with the healthy rate of growth and opportunities generated by the IT/ITeS, manufacturing and automobile sectors have ensured a steady stream of demand.

The market seems to look for clear direction with a government in control of the situation rather than a fragmented mandate. Looking forward, there are signs of a BJP led government at the centre. This event is significant and if it turns out to be correct, there will be buoyancy in sentiment that will translate to all investment classes including real estate. The real estate regulatory bill for the state of Maharashtra is pending sign off by the President of India. This bill will lead to an increase in customer confidence and comfort and can further boost demand for approved projects.

News Archive
 
 
 



Testimonials

I’ve been a sports person, and also captained my throwball and volleyball teams. I understand the importance of extracurricular activities in our growing up years.

Trainings provide a child with the required discipline when working within teams as well as gives one the chance to follow what makes you happy. It also enables an overall development!
Dance has been my passion since I was a child and I have been thrilled to see both my little ones have this in their genes too.

This opportunity really came to my doorstep through Gera. My daughters Lavanya and Diya have had an enthralling experience being a part of not just one but three Academies (The Shiamak Davar Dan..

I cannot thank you enough for making our journey with Gera so so interesting and mind-blowing. I had never ever imagined my life taking a beautiful turn with me beginning to start my career as a music teacher that too with SMA (Shankar Mahadevan Academy) and all this has been possible only because of GERA and YOU my dear.
It is only because of your efforts and kind gesture that I could meet the man himself (Shankar Ji) and have a small recording session with him. That was like a dream come true.
I am super excited to start my journey with SMA and Gera as a teacher now.

Apart from that, Me and Prateek have always been grateful to you for making Shiamak happen for us and I ..

It was indeed a pleasure being a part of the Christmas celebrations at Astoria. Kudos to the Gera team for bringing in such a wonderful event with great carol singing participation from our own kids. It brought in the spirit of Christmas and the games, Santa, the gifts only added to it. Thanks for organising such a wonderful event which helped in community building...looking forward to many more such celebrations!

..

The Christmas event organised at Astoria was a big success and a big step in bridging the gap between us and Gera. It was a memorable event as we are still in the beginning of our journey of life in our little home at Astoria. The kids have been the happiest of all and what more can we ask for when we see smiles on the faces of our little ones. Kudos to you and your team for making this event a huge success! Looking forward to many more in the years to come.

..

The Christmas party organised by Gera at Astoria this year was a great success with good participation from kids and parents. Our children Sia and Saish enjoyed the party to the fullest. Sia, in particular, had a gala time and reiterated her stand that Anita aunty's parties are THE BEST.... We as your customers take much pride in informing our friends that such goodwill gestures are one of the many differentiators Gera brings to us, which no other builder in Goa can boast of. Many thanks to you and your team for doing an excellent job in putting up this event. We look forward to the next one! A big thanks to the Gera Management for its efforts in community building.

..