KNIGHTFRANK.CO.IN JANUARY TO JUNE 2016 RESIDENTIAL & OFFICE PUNE
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KNIGHTFRANK.CO.IN
JANUARY TO JUNE 2016
RESIDENTIAL & OFFICE
PUNE
KNIGHTFRANK.CO.IN
RESIDENTIAL
NEW LAUNCHES DROP
BY 32% YOY IN H1 2016;
DOWN BY 72% SINCE 2012
KNIGHTFRANK.CO.IN
Uncertainty over the new development
control norms hits supply
HALF-YEARLY NEW LAUNCHES
31,4
60
20,7
20
16,8
80
12,7
60
8,7
10
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
H1 2012 H1 2013 H1 2014 H1 2015 H1 2016
No
. o
f u
nit
sLaunches down by
72% since 2012
Launches down by
32% since H1 2015
KNIGHTFRANK.CO.IN
But sales volume holding steady to
previous year’s level
HALF-YEARLY SALES VOLUME
23,1
20
20,9
30
14,7
20
15,5
20
15,6
90
-
5,000
10,000
15,000
20,000
25,000
30,000
H1 2012 H1 2013 H1 2014 H1 2015 H1 2016
No
. o
f u
nit
s
Sales volume
holding steady
KNIGHTFRANK.CO.IN
Inventory pressure eases
off; unsold inventory at a
5-year low
KNIGHTFRANK.CO.IN
Unsold inventory levels fall drastically by 22%
from their high of 71,000 units just 2 years ago
UNSOLD INVENTORY AND QTS TREND
62,6
50
62,0
50
71,0
00
64,8
00
55,2
20
5.6 5.9
7.0 6.8
6.2
0
2
4
6
8
-
20,000
40,000
60,000
80,000
H1 2012 H1 2013 H1 2014 H1 2015 H1 2016
Nu
mb
er
of
qu
art
ers
No
. o
f u
nit
s
Unsold Units QTS (Right Side Axis)
KNIGHTFRANK.CO.IN
Premium markets holding
strong in sales volume, but
new launches continue to be
at zero level
KNIGHTFRANK.CO.IN
Lack of new supply and steady demand to exert
upward pressure on prices in the premium markets
HALF-YEARLY PREMIUM MARKET TRENDS
492
255
148
76
0
0
235
225
220
181
213
187
0
100
200
300
400
500
600
H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016
No
. o
f u
nit
s
New Launches Sales Volume
KNIGHTFRANK.CO.IN
Developers shift
focus towards the
budget segment
KNIGHTFRANK.CO.IN
Budget segment’s share in new launches jumps
from 12% to 27% in 2 years
SHARE OF LAUNCHED UNITS BELOW ` 25 LAKH IN TOTAL LAUNCHES
12
%
16
%
27
%
0%
5%
10%
15%
20%
25%
30%
H1 2014 H1 2015 H1 2016
KNIGHTFRANK.CO.IN
KEY TAKEAWAYS
UNCERTAINTY OVER
DCR NORMS HITS
SUPPLY
KNIGHTFRANK.CO.IN
OFFICE
LACK OF NEW SUPPLY
LEADS TO FALL IN
OFFICE TRANSACTIONS
BY 7% YoY IN H1 2016
KNIGHTFRANK.CO.IN
Demand continues to outstrip supply
HALF-YEARLY TREND OF NEW COMPLETIONS & TRANSACTIONS
2.0
0.5
1.5
1.1 1
.3
2.1
2.4
2.2
3.3
2.0
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016
mn
sq
ft
New completions AbsorptionTransactions
KNIGHTFRANK.CO.IN
Vacancy levels drop to their historic low of 9.3%
VACANCY TREND
5%
10%
15%
20%
25%
30%
25%
9.3%
KNIGHTFRANK.CO.IN
Rents in Pune grow at one
of the fastest pace in India;
jumps by 14% YoY
KNIGHTFRANK.CO.IN
Rental values up by 54% since 2012
WEIGHTED AVERAGE RENTAL TREND
35
40
45
50
55
60
`/sq
ft/m
on
th
37
57
KNIGHTFRANK.CO.IN
39%
33%
9%
20%
32%
25%
17%
27%
64%
14%
9%
13%
0%
10%
20%
30%
40%
50%
60%
70%
IT/ITeS BFSI* Manufacturing Other Services
H1 2014 H1 2015 H1 2016
IT/ITES sector makes a strong comeback in the city
SECTOR WISE TRANSACTION SPLIT
KNIGHTFRANK.CO.IN
KEY TAKEAWAYS
SHORTAGE OF SUPPLY
LEADING TO FALL IN
TRANSACTION VOLUME
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