Gera now presents the Pune Residential Realty report from July 14 to January 15

1. THE GERA PUNE RESIDENTIAL
REALTY REPORT
JULY ‘14 - JANUARY ‘15
Presents

2. The Gera Pune Residential Realty Report July 14-January 15
PRICES: The rate of price increase for 2014 has dropped substantially over 2013. Half
yearly rate increases are now below inflation .The last 12 months have seen the
slowest increase in rates of only 5.3%. This as compared to 14.1% and 14.8% over the
two prior years.
Six Monthly Price Movements

3. SUPPLY: Over the past 6 months, the gross stock has reduced from 245,369 units to
240,433 – a reduction of 2.1% (indicating that the projects were being launched slower
than the rate of completion). During the same period, the unsold stock has increased
from 66,350 units to 67,181 units – an increase of 1.2%. For the first time in 3 years, the
total number of projects has reduced from 2761 in June 2014 to 2683 in December
2014.
Overall Supply Situation
The Gera Pune Residential Realty Report July 14-January 15

4. The unsold inventory in early stage projects has risen from 41.4% in
December ’12 to 65.1% in December ’14. While the increase in the
unsold stock for the early stage projects is 22.35%, the increase in
the overall unsold stock % is 6.07%. Clearly consumers are being far
more careful and purchasing projects which are past the early stage
of progress.
Inventory Situation
The Gera Pune Residential Realty Report July 14-January 15

5. On an average, the top 10 developers as per the list have approx. 10% of the gross stock
across the market (the top 10 developers are building/have built 10% of the total units
under construction in Pune). Unsold stock numbers are consistently lower across all stages
of work for this subset of developers, indicating that these developers are able to sell stock
faster than the rest of the market. Table below shows the sold stock across various
stages of work for the entire market compared to the top 10 subset.
Stock Sellout Analysis
The Gera Pune Residential Realty Report July 14-January 15

6. We decided to assess the market in terms of supply and unsold stock based on the quoted
rates – The table below shows the rates considered in December ’12, December ’13 and
December ’14 for 5 categories of homes.
Supply and Unsold Stock Analysis
The Gera Pune Residential Realty Report July 14-January 15

7. In general, the unsold stock percentage increases as we moved towards the upper end of
the pricing spectrum , which stands to reason (Premium plus and Luxury units have a
longer inventory turnover period compared to lesser priced units).
Unsold Stock Percentage
The Gera Pune Residential Realty Report July 14-January 15

8. Value and volume analysis
The following chart tracks the Total Value (in Crores) and the total area (in square feet) of
the Unsold Inventory over the last 2 years .
Value and Volume Analysis
The Gera Pune Residential Realty Report July 14-January 15

9. Highest inventory
The top 10 locations account for more than half of the total unsold units in Pune.
Locations with Highest Inventory
The Gera Pune Residential Realty Report July 14-January 15

10. Top 20 Micromarkets
The Gera Pune Residential Realty Report July 14-January 15

11. The micro markets that have witnessed the maximum increase in prices over the last 24
months are listed below.
Micromarkets with Maximum Increase in Prices
The Gera Pune Residential Realty Report July 14-January 15

12. Micromarkets with Highest Price Gains
Micromarkets with Highest Price Gains in the last two years
The Gera Pune Residential Realty Report July 14-January 15

13. Bottom Ten Lowest Gainers (in the last 24 months)
Bottom Ten Lowest Gainers
The Gera Pune Residential Realty Report July 14-January 15

14. We did an analysis of price changes for the luxury locations of
Model Colony, Aundh, Koregaon Park & Boat Club Road. The
following are the average prices in these markets over the last 24
months.
Price Changes for Luxury Locations
The Gera Pune Residential Realty Report July 14-January 15

15. The reduction in the base interest rates of 25
basis points while positive will not do much
to move the overall market. While the stock
market has already responded to the new
government and the changes that are taking
place, the real estate market has been far
more circumspect.
The genuine home buyers have seen difficult
times with high interest rates as well as high
inflation and low salary increases and this
effect has led to home buyers taking a far
more cautious approach this time around.
Summary
The Gera Pune Residential Realty Report July 14-January 15