pune real estate report h1 2016 presentation

19
KNIGHTFRANK.CO.IN JANUARY TO JUNE 2016 RESIDENTIAL & OFFICE PUNE

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Page 1: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

JANUARY TO JUNE 2016

RESIDENTIAL & OFFICE

PUNE

Page 2: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

RESIDENTIAL

NEW LAUNCHES DROP

BY 32% YOY IN H1 2016;

DOWN BY 72% SINCE 2012

Page 3: Pune Real Estate Report H1 2016 presentation

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

Page 4: Pune Real Estate Report H1 2016 presentation

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

Page 5: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

Inventory pressure eases

off; unsold inventory at a

5-year low

Page 6: Pune Real Estate Report H1 2016 presentation

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)

Page 7: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

Premium markets holding

strong in sales volume, but

new launches continue to be

at zero level

Page 8: Pune Real Estate Report H1 2016 presentation

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

Page 9: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

Developers shift

focus towards the

budget segment

Page 10: Pune Real Estate Report H1 2016 presentation

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

Page 11: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

KEY TAKEAWAYS

UNCERTAINTY OVER

DCR NORMS HITS

SUPPLY

Page 12: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

OFFICE

LACK OF NEW SUPPLY

LEADS TO FALL IN

OFFICE TRANSACTIONS

BY 7% YoY IN H1 2016

Page 13: Pune Real Estate Report H1 2016 presentation

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

Page 14: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

Vacancy levels drop to their historic low of 9.3%

VACANCY TREND

5%

10%

15%

20%

25%

30%

25%

9.3%

Page 15: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

Rents in Pune grow at one

of the fastest pace in India;

jumps by 14% YoY

Page 16: Pune Real Estate Report H1 2016 presentation

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

Page 17: Pune Real Estate Report H1 2016 presentation

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

Page 18: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

KEY TAKEAWAYS

SHORTAGE OF SUPPLY

LEADING TO FALL IN

TRANSACTION VOLUME

Page 19: Pune Real Estate Report H1 2016 presentation

KNIGHTFRANK.CO.IN

JANUARY TO JUNE 2016

RESIDENTIAL & OFFICE

[email protected]