Pune: 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 per cent 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 sq ft reflecting an increase of 7.66 per cent for the second half of 2013. The average price a year ago was Rs 4211 per sq ft, the YoY increase from Dec'12 to Dec'13 has been 14.13 per cent. 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, "ThePune 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 per cent in the second half of 2013 as compared to an expansion of 20.3 per cent 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 percent in the average market price and the year ended at 14.13 per cent. This year our prediction range is widened to 13 - 18 percent."
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 per cent (11,948) of the 41,607 new units launched are priced Rs 75 lakhs or greater. The sellout for higher sized units is 71 per cent compared to 81 per cent 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 sq ft to 750 sq ft segment has the maximum number of unsold apartments (15,855), followed closely by the 751 to 1000 sq ft segment (15414 unsold apartments). During the 6 month period, the 1251-1500 sq ft segment saw a 16.46 per cent jump, the 1501-2000 sq ft segment saw a 7.7 per cent jump and the segment above 2001 square foot saw a mere 2.6 per cent jump in the unsold stock.
Of the unsold stock roughly 50 per cent of the stock is below the 40 lakhs cost bracket (53 per cent in Jun-13) while 83 per cent 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.
About Gera Developments
Gera Developments, one of the pioneers of the real estate business in Pune are recognized as the creators of premium residential and commercial projects. Gera Developments ventured into the Goa real estate business in 2004 with its first commercial building in downtown Panjim. Some of Gera Developments' landmark projects in Pune are Gera's GreensVille, SkyVillas, Gera's Emerald City, Gera's Astoria and Gera's Imperium amongst others.
Gera Developments prides itself on providing long term enjoyment to customers and innovation being a hallmark of the company's projects. There are many 'firsts' that stand to Gera Developments' credit such as 5-Year Warranty on real estate- consisting of preventive maintenance and repairs- first time in India, India's first ChildCentricTM project, Insurance of buildings for 3 years (prepaid), Pune's first intelligent building - Gera Legend, separate guest suite facility within the project - Gera Riverside, the first shopping mall in Pune - Gera Plaza
First of all I would like to thank you and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned it has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..
My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days...
It's a wonderful experience with the tennis academy and my daughter liked it. Also she is getting good training and love for the game.
The coaches are good and we would continue using their expertise for Nishita going onwards. We are also looking forward for signing (actually instrument) and dancing coaching too.
This is to share with you that both my little girls (Aditi Anisha) are really enjoying their Tennis classes at the Mahesh Bhupathi Tennis Academy.
I always find them very excited whenever there is TENNIS CLASS, and this excitement matters to both of us, as the kids seems to be interested.
It’s nice to see them constructively engaged, and coming home happy and having felt productive in their own child little way. It’s a great way for them to bond with other young ones and feel belonged to a larger community.
Thanks to You, Gera Developments and MBTA for giving our young ones, an opportunity for a wonderful learning experience.
Now they are looking forwar..
Regarding the workshops & different academy sessions, it has been wonderful experience so far for Shlok and we’re looking forward for the new opportunities.
It’s absolutely fantastic to have all these academies in the premises, and that too from the renowned personalities, so we can send kids without worrying about other factors like safety & all.
And most importantly, a big thanks to you for the lovely follow-ups & timely updates about the upcoming/ongoing sessions.