The real estate landscape in Pune is undergoing a noticeable shift, with data from Maharashtra Real Estate Regulatory Authority (MahaRERA) indicating a significant increase in the launch of 1 BHK apartments in the city. This trend is attributed to a combination of factors, including rising home loan rates, the impact of the global IT sector slowdown, and changes in work culture due to the pandemic. As a result, homebuyers, particularly tech professionals, are gravitating towards more affordable housing options.
The MahaRERA data for the first half of 2023 highlights a remarkable surge in the launch of 1 BHK apartments in Pune district, which is recognized as the IT capital of Maharashtra. Around 11,000 units of 1 BHK apartments were launched during this period, compared to 6,365 units in the second half of 2022. This trend is in line with the changing preferences of homebuyers who are seeking compact and budget-friendly housing options.
Pune’s thriving IT sector, which comprises over 70 percent of homebuyers, has witnessed a unique change in housing choices. The work-from-office culture and the affordability factor have contributed to the surge in demand for 1 BHK apartments. As home loan rates increased over the past two years and the global slowdown impacted purchasing power, techies are now leaning towards smaller units that fit their budgets.
The shift in demand is also evident in the ratio of apartment launches. In the first half of 2023, 1 BHK apartments accounted for 19 percent of the total launches, while larger units like 1.5 and 2 BHK and 2.5 and 3 BHK apartments constituted 42 percent and 19 percent, respectively. In 2022, the ratio was 16 percent for 1 BHK apartments, 45 percent for 1.5 and 2 BHK apartments, and 23 percent for 2.5 and 3 BHK apartments.
Interestingly, the rise in demand for more affordable housing options is also reflected in the increase of apartment units smaller than 322 sq ft. In the first half of 2023, 8,951 such units were launched, compared to 7,930 in the entire calendar year of 2022.
Micro-markets such as Punawale-Tathawade and Wakad-Hinjawadi have emerged as hotspots for apartment launches. These areas have seen maximum units being launched, indicating the changing preferences of homebuyers. Conversely, areas like Hadapsar-Handewadi, Keshavnagar-Mundhwa, and Dhayari have witnessed a decrease in supply, which could potentially lead to a rise in prices.
As Pune’s real estate market responds to global market uncertainties and increased prices, the surge in 1 BHK apartment launches underscores the need for more affordable housing solutions. With the sweet spot for 1 BHK apartments falling between Rs 30 lakh and Rs 50 lakh, tech professionals and homebuyers are reshaping the city’s real estate landscape in response to changing economic conditions and evolving work patterns.
