- New residential launches in Pune saw historic lows in the first half of 2017, with a focus on budget homes priced under INR 2.5 million. Overall sales saw an 11% improvement. - In the office market, transactions declined 12% due to a shortage of relevant supply, though rentals continued growing moderately. Co-working spaces emerged as a new trend. - The report analyzes housing inventory, prices, market splits and provides an overview of the residential and commercial real estate markets in Pune for the first half of 2017.

1. Pune
Residential & Office
January to June 2017
1

2. RESIDENTIAL
RECAP
2016
2

3. KEY
FINDINGS
H1 2017
01 New launches see a
historic low since
2010; worse than
demonetisation half
03 Budget homes in vogue
02 Sales see a 11%
improvement
3

4. Half yearly
trend in
launches
4
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
No.ofunits
-9%

5. Ticket-size
split of
launches
5 H1 2016 H2 2016 H1 2017
<INR 2.5 mn 27% 21% 54%
INR 2.5-5 mn 47% 49% 31%
INR 5-7.5 mn 19% 18% 5%
INR 7.5-10 mn 5% 3% 9%
INR 10-20 mn 1% 8% 1%
>INR 20 mn 1% 0% 0%

6. 1%
19%
22%
31%
28%
6%
21%
28%
16%
28%
1%
25%
31%
19%
24%
0%
5%
10%
15%
20%
25%
30%
35%
Central East West North South
H1 2016 H2 2016 H1 2017
Micro-market
split of
launches
6
8,713 units 11,300 units 7,905 units

7. Half yearly
trend of
sales
7
-
5,000
10,000
15,000
20,000
25,000
No.ofunits
11%

8. Micro-market
split of sales
8
2%
24%
25%
24% 25%
2%
28%
23%
27%
21%
2%
23%
27%
20%
28%
0%
5%
10%
15%
20%
25%
30%
Central East West North South
H1 2016 H2 2016 H1 2017
15,688 units 16,800 units 17,480 units

9. Residential
price index
9
95
100
105
110
115
120
125
130
Indexvalue(Q12013=100)
CPI Pune
CPI
Pune

10. Analysis of
unsold inventory
and QTS
10
62,049
68,843
71,007
67,557
64,795
62,190
55,215
49,715
40,141
6
7
7 7
7 7 6
6
4.5
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
-
1
2
3
4
5
6
7
8
H1
2013
H2
2013
H1
2014
H2
2014
H1
2015
H2
2015
H1
2016
H2
2016
H1
2017
Unsoldinventory(no.ofunits)
QTS
Unsold inventory (RHS) QTS

11. Unsold
inventory
11
Unsold units Quarters-to-sell
Central 1,108 7
East 10,597 5
West 10,616 5
North 10,994 5
South 6,826 3
Total 40,141 4.5

12. 12
RESIDENTIAL
SUMMARY
H1 2017

13. OFFICE
RECAP
2016
13

14. KEY
FINDINGS
H1 2017
01 Shortage of relevant
office supply has been
a major factor for the
decline in transactions
03 In the absence of
large-space availability
in existing projects,
occupiers are not
going over board for
built-to-suit deals
02 Co-working space as a
trend emerges in
markets like Nagar
Road and Hadapsar
14
04 Rentals growth from
now on will be moderate
as inter-city comparison
will be made by cost-
conscious IT occupiers

15. Half yearly
trend of
transactions
15
-
1
2
3
4
mnsqft
-12%

16. Half yearly
trend of new
completions
16
-
1
2
3
mnsqft
35%

17. 17 Half yearly
trend of
vacancy
20%
16%
15%
11%
9.3%
8.2%
7.9%

18. 18 Half yearly
trend of
rentals
43
47
50
56
57
60
61
35
40
45
50
55
60
INR/sqft/month

19. 19 Sector-wise
split of
transactions
64%
14%
9%
13%
44%
33%
14%
10%
60%
12%
5%
22%
0%
10%
20%
30%
40%
50%
60%
70%
IT/ITeS BFSI* Manufacturing Other Services
H1 2016 H2 2016 H1 2017
2mn sq ft 1.8mn sq ft 1.8mn sq ft

20. 20 Business
district-wise
transaction
7%
24%
8%
14%
47%
5%
38%
12%
36%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
CBD & Off-CBD SBD East SBD West PBD East PBD West
H1 2016 H1 2017

21. OFFICE
SUMMARY
H1 2017
21

22. Pune
Residential & Office
January to June 2017
22
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