In 2021, Pune’s residential real estate sector demonstrated substantial growth with a 38% year-on-year increase, as per the half-yearly report released by property consultant Knight Frank. The region achieved sales of 37,218 units and transacted 3.8 million square feet of office space during the year.
New launches experienced a 16% rise, introducing 40,489 units in the market. In the second half of the year, 19,744 units were finalized, and 70% of the office space transactions occurred during this period.
The report noted Pune’s remarkable performance in office space transactions, with 2.7 million square feet in the second half of 2021, reflecting the highest year-on-year growth among the top eight cities. The total office space transactions for 2021 reached 3.8 million square feet, with 70% taking place in the second half. The average deal size increased by 11% year-on-year to 58,685 square feet in the second half of 2021.
In terms of rentals, Pune experienced a marginal 3% quarter-on-quarter increase in Q4 2021. The BFSI sector emerged as the primary contributor to Pune’s office market, accounting for 35% of transactions, followed by manufacturing and co-working at 19% and 18%, respectively, in the second half of 2021.
In the residential segment, Pune witnessed the sale of 19,744 housing units in the second half of 2021, contributing to a total of 37,218 units in the entire year. Pune became the third-largest residential market in the country, with an average price level reported at INR 4,000 per square foot.
The south and east markets played significant roles in sales volume during the second half of 2021, contributing 38% and 24%, respectively. In contrast, the west market’s share shrank to 22% in the second half of 2021, although it maintained a strong position with a 35% market share in the same period of 2020. Price levels remained unchanged in the second half of 2021.