In 2022, Pune experienced the third-highest surge in real estate prices nationwide, according to research conducted by ANAROCK, a property consulting firm. The city witnessed the absorption of 64,343 units, a significant increase from the 35,975 units sold in 2021.
The real estate industry saw a resurgence in 2022 after the slowdown caused by the Covid-19 pandemic in 2020 and 2021. The research, which analyzed property sales in seven cities (Mumbai Metropolitan Region, Pune, NCR, Bengaluru, Hyderabad, Kolkata, and Chennai), revealed year-on-year growth in property sales across all locations.
Hyderabad (89%) and Kolkata (62%) surpassed Pune in terms of unit absorption, despite a gradual rise in property rates driven by increases in raw material prices like steel and cement. Pune’s per square feet area rose to Rs 6,000 compared to Rs 5,733 in 2021. MMR and Bengaluru experienced the highest price increase at 7%, while Kolkata had the lowest at 4%.
In terms of new launches, Pune recorded a healthy 61% increase from 2021, with 64,343 units launched compared to 39,869 units the previous year. MMR led in new launches with a growth rate of 114%, while Chennai and NCR experienced a decline of 20% and 19%, respectively.
Anuj Puri, Chairman of ANAROCK, described 2022 as a phenomenal year for residential real estate despite challenges such as rising property prices, interest rate hikes, and geopolitical tensions. Housing sales in the top 7 cities exceeded the previous highs of 2014, while new launches remained limited in comparison.
Puri noted that, contrary to expectations, the rise in property costs and interest rates in the second half of 2022 did not significantly impact residential sales. Q4 2022 remained robust, with 92,160 units sold. NCR stood out in 2022, restricting new supply to around 22,350 units but witnessing strong housing sales of 63,700 units.
Looking ahead to 2023, Puri anticipated the momentum in housing sector sales to continue in the first quarter. He highlighted the unwavering appetite for homeownership, driven primarily by end-users, although potential risks loom over the residential segment. The trajectory will be influenced by how home loan interest rates unfold in the coming year.