OPEN APP
Home / Economy / Pune housing prices may rise 8% this year: Report
Listen to this article

Housing sales in Pune rose 12% to 92,896 units last year on better demand and are likely to grow further this year despite the ongoing Covid pandemic, according to a report by realty firm Gera Developments.

The company on Friday released its half yearly 'GERA Pune Residential Realty Report' through a virtual press conference.

"Housing sales in 2021 were higher than the previous year and almost touched pre-Covid levels," Gera Developments Managing Director Rohit Gera told reporters.

Housing sales stood at 82,727 units in 2020 and 94,383 units during 2019. During 2014, sales were 98,968 units.

Gera said the average housing prices rose 5 per cent in 2021 and are likely to increase further by 7-8 per cent in the current calendar year.

"The construction cost has gone up by around 15 per cent in the last one year, which translates into 7.5 per cent of total cost of flats," he pointed out.

In the last one year, the report mentioned, cement prices are up 27 per cent, while steel is up 24 per cent. Other building materials too have shown large price increases. 

Top 20 developers in the city cornered around 23 per cent of market share in sales, he said, adding that their share would increase further in the coming years.

Before 2019, their market share was around 13-15 per cent.

Gera highlighted that the demand would continue to be strong because of improved affordability in view of low interest rates on home loans and not much increase in prices of residential properties during the last seven-eight years.

"Its a good time to buy, but not from any developer. Customers should do proper homework and due diligence befor purchasing," Gera cautioned.

Gera Developments started to publish this report in 2011.

This census-based study uses feet on street methodology of data gathering and covers the Pune Urban Agglomeration area, the company said.

The data is then validated and statistically analysed. Gera Developments, a 50-year old company, has projects in Pune, Goa and the USA.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout