Pune’s housing market has remained remarkably strong despite the Covid-19 pandemic. Both demand and new supply were consistent from July 2020 to March 2021 after the State government imposed first wave restrictions. Unfortunately, the second wave in April to June quarter this year caused far more damage to Pune’s housing sector.
Recent data by real estate consultancy ANAROCK confirmed that housing sales in Pune saw a quarterly drop of 64% – from 10,550 homes in Q1 2021 to nearly 3,800 homes in Q2 2021. The yearly trend was better, denoting a 75% rise in Pune housing sales against the same period in 2020. Project launches had a quarterly reduction of 64% quarterly drop but the annual increase was more than 550%.
What was so different during the first wave? Most importantly, the far-too-short stamp duty cut by the state government came in this period and was a big demand booster. It coincided with very low home loan interest rates and ongoing discounts and incentives by developers. Despite far for restricted movement possibilities for Puneris, the first wave was much better for the city’s housing market.
What Pune’s Housing Market Needs
1. Extension of Stamp Duty Cut:
2. Investigate & Act on Exorbitant Rise of Raw Materials Costs:
3. Provide Limited-time GST Waiver & ITC Benefit:
4. More Tax Incentives for First Home Buyers:
As already mentioned, there is sufficient ‘real’ demand, and the right combination of incentives – at the right time- can convert this demand into sales. Helping more hopeful citizens to realize their dream of homeownership is not a one-sided exercise – it is a win-win situation for everyone, including the government.
The time to act is now. Neither housing loan interest rates nor property prices can remain at the current low rates indefinitely. Once interest rates and property prices inevitably begin to rise, this window of opportunity will close.
Also read: How Pune will gain from Model Tenancy Act?
By: Anil Pharande is CMD of Pharande Spaces, a leading real estate construction and development firm famous for its township properties in West Pune.