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Hindustan Times
14-07-2025
- Business
- Hindustan Times
Pune real estate: 1 BHK supply hits record low as buyers seek spacious apartments, upgrades increase
Pune's real estate market is witnessing a significant dip in the supply of 1 BHK apartments, which now account for just 8% of total new launches, the lowest level recorded, according to a research report by Gera Developments. Pune's real estate market is witnessing a significant dip in the supply of 1 BHK apartments, which now account for just 8% of total new launches, the lowest level recorded, according to a research report by Gera Developments. (Picture for representational purposes only)(Mehul R Thakkar/HT) This marks a sharp decline from 2017–18, when 1 BHK units comprised over 40% of the market. In contrast, the share of 2 BHK apartments has increased, driven by growing demand from two key buyer segments: first-time homebuyers seeking slightly larger homes and existing homeowners looking to upgrade. The report also notes that while the launch ratio of 1 BHK units has declined, launches of 2 BHK, 3 BHK, and 4 BHK apartments have gone up, even as overall sales have softened over the past year. Developers attribute this trend to sustained demand in the 2 and 3 BHK segments, fueled by both new buyers and upgraders. Pune real estate market clocks 88000 launches in 2024-25 The Pune real estate market reported the launch of over 88,000 units in 2024-25 (July to June) compared to over 99,000 during the same period in 2023-24. According to the report, of the over 88,000 launches in 2024-24, only 8.7% were in the 1 BHK segment. 1BHKs accounted for a significant 48.1% share of new launches between July 2017 and June 2018. The share fell to 42.2% in 2018-19, 35.3% in 2019-20, and 26.9% in 2020-21, the report said. By July 2021-June 2022, the share stood at 21%, before plunging to just 15.1% in 2022-23 and 14% in 2023-24. The latest data for July 2024 to June 2025 reveals that only 8.7% of new units launched were 1 BHKs, the lowest proportion seen in the eight-year period, the report said. While the share of 1 BHK units has steadily declined, larger configurations have gained significant traction in the housing market over the past eight years, the report indicates. Although consistently dominant, the share of 2 BHK units has fluctuated moderately, from 43.4% in 2017-18 to a peak of 54.9% in 2021-22, before easing to 48.19% in 2024-25. The 3 BHK segment has witnessed a healthy rise, growing from just 5.5% of new launches in 2017-18 to 31.62% in 2024-25. The 4 BHK category has gradually expanded its presence, from a mere 0.4% share in 2017-18 to 4.15% in 2024-25, according to the report. "Post COVID-19, young IT professionals, who had purchased 1 BHK apartments around 10 to 15 years ago, have upgraded to either 2 BHK or 3 BHK, and even first-time homebuyers are preferring 2 BHK and 3 BHK apartments. Also, for real estate developers, profit margins are higher in larger apartments than in 1 BHK apartments. Hence, due to lower demand from homebuyers and lower supply from developers, 1BHKs are a rare sight today in Pune," said Rahul Ajmera, Pune-based developer at Vasupujya Corporation and a data analyst. Also Read: Pune property registrations up 16% in H1 2025 to 1.16 lakh in H1 2025; Stamp duty collections rise 19% '1 BHK launches may not increase significantly despite sales going down' Pune's residential real estate market recorded an 8% decline in annual home sales. According to the Gera report, sales fell from 93,737 units in June 2024 to 86,666 units in June 2025, even as average prices rose moderately by 7.3%. The report attributed the drop in sales to a sticker shock effect, which made apartments less affordable. Despite the decline, Rohit Gera, MD of Gera Developments, does not foresee a significant increase in the launch or sale of 1 BHK apartments in the Pune real estate market. Also Read: Pune real estate faces 'sticker shock', housing sales decline despite lower interest rates "People increasingly prefer larger apartments, especially after COVID-19, and this is evident from the rising share of 2, 3, and 4 BHK units in new launches, while the proportion of 1 BHK apartments has declined. In Pune, the average size of apartments has also grown over the past few years, even as the overall number of new launches has come down," Gera said. "This trend has likely contributed to higher prices and a slowdown in sales. Looking ahead, I believe developers will need to boost the volume of new launches while reducing apartment sizes, " Gera said. "However, this doesn't necessarily mean there will be a significant surge in 1 BHK launches in Pune, their share might only inch up to around 10%, if at all. Instead, I expect developers will focus on slightly reducing sizes across all configurations and increasing supply to help improve sales momentum," he said. Also Read: Mumbai, Thane, Navi Mumbai, and Pune see a decline in housing sales and supply in Q2 2025 The report said the average size of apartments has increased by 25% over the last five years, from 966 sq ft in 2021 to 1,210 sq ft in 2025. On the other hand, the average price of apartments has increased by 43% over the last five years, from ₹4,731 per sq ft in 2021 to ₹6,759 per sq ft in 2025. Therefore, the average ticket size has increased by 79%, from ₹45.69 lakh to ₹81.77 lakh, the report added.
Times of Oman
07-06-2025
- Business
- Times of Oman
Industry leaders hail RBI's rate cut as catalyst for further boosting housing demand and homebuyer sentiment
New Delhi: The Reserve Bank of India's Monetary Policy Committee (MPC) has taken a decisive step to revive economic momentum by slashing the repo rate by 50 basis points, bringing it down to 5.5%, while also reducing the Cash Reserve Ratio (CRR) by 100 bps. These moves, combined with a revised CPI inflation outlook of 3.7% and a projected real GDP growth of 6.5% for FY26, reflect a front-loaded approach to accelerate growth and consumer confidence. Responding to the announcement, CREDAI-MCHI, the apex body of real estate developers in the Mumbai Metropolitan Region, Gera Developments and Star Housing Finance Limited welcomed the RBI's bold and growth-oriented stance, highlighting its strong potential to unlock housing demand, especially in the affordable and mid-income segments. Mr. Domnic Romell, President, CREDAI-MCHI said: "This dual action of reducing both the repo rate and CRR sends a clear signal--liquidity infusion and affordability are a priority. Lower interest rates on home loans will make homeownership more accessible to thousands of first-time buyers across MMR and beyond. This move can energize end-user sentiment, improve project viability, and bring housing within reach for many." Mr. Dhaval Ajmera, Secretary, CREDAI-MCHI added: "We urge banks and lending institutions to swiftly transmit the benefit of the rate cut to consumers. The current economic environment--low inflation, improved liquidity, and steady demand--creates a strong foundation for a real estate-led recovery. This is the ideal time for aspiring homebuyers to take the leap." CREDAI-MCHI also emphasized that the CRR cut will support NBFCs and banks in extending more credit to developers, particularly those operating in emerging growth corridors of MMR such as Panvel, Dombivli, Vasai-Virar, and Kalyan, where affordable housing remains the driving force. The organization reaffirmed its commitment to working collaboratively with stakeholders to ensure the benefits of this monetary easing are passed on efficiently and transparently, accelerating India's journey toward inclusive housing and sustainable urban growth. Mr. Rohit Gera, Managing Director Gera Developments, highlighted: "The RBI's decision today to cut the repo rate for the third time in a row comes as no surprise, given the strong macro indicators retail inflation easing to 3% levels, solid GDP momentum with a 6.5% growth target, and ample durable liquidity already pumped into the system. This cumulative 100 bps repo rate reduction in 2025 is now complemented by a sharp 100 bps cut in the CRR from 4% to 3% which alone injects significant liquidity and lowers banks' cost of funds. Together, these measures are designed to accelerate monetary policy transmission and bring down lending rates across the board. This reflects the central bank's aim to bolster domestic economic growth and shared prosperity amid global uncertainties. For the real estate sector, this move could be a catalyst: lower borrowing costs will translate into reduced EMIs and improved homebuyer sentiment. Hopefully, banks actively and rapidly pass on the cut to home buyers. The policy stance clearly aims to revive private investment and consumption." Mr. Kalpesh Dave, Director & CEO, Star Housing Finance Limited mentioned: "The RBI's decision to reduce the repo rate by 50 basis points is a welcome move. This should translate into lower EMIs for home loan borrowers. Disposable income should increase and thereby scope for increased spending. Concurrently, it lowers the borrowing costs for HFCs and NBFCs. We anticipate a thrust in retail credit off-take, particularly in home financing, as affordability improves. This is a positive step that should stimulate consumer spending and boost the housing sector. While celebrating this growth impetus, we acknowledge that vigilant inflation monitoring remains crucial going forward to sustain these benefits."
