Pune Property Registrations Drop by 33% in September 2024 Amid Shraddh Period

The real estate market in Pune experienced a notable decline in property registrations in September 2024, with a 33% drop compared to the same month in the previous year. According to a report by Knight Frank India, only 11,056 properties were registered last month, down from 16,604 units recorded in September 2023. This significant decrease is largely attributed to the inauspicious Shraddh period, during which people traditionally refrain from making large purchases or high-value transactions.

Impact of Shraddh on Property Sales

Shraddh, a 12-day period of mourning and remembrance in Hindu tradition, is widely regarded as an unfavorable time for major financial decisions, including property purchases. In 2024, the Shraddh period extended from late September into October, aligning with the observed dip in property registrations. Knight Frank’s analysis highlights this cultural factor as the primary driver behind the sharp reduction in property deals during September.

In 2023, Shraddh occurred from September 29 to October 14, and despite this, Pune saw stronger property market performance that year. The 33% year-on-year decrease underscores the importance of cultural and religious periods in influencing real estate activity in India.

Stamp Duty Collections Reflect the Decline

The decline in property registrations also had a noticeable impact on stamp duty collections. In September 2024, Pune's stamp duty revenues amounted to Rs 508 crore, a drop from the previous year, reflecting the reduced volume of property transactions. This financial shortfall highlights the broader economic impact of cultural practices on government revenues, as real estate transactions are a significant contributor to local and state taxes.

Strong Performance in 2024 Despite September Dip

Despite the drop in registrations last month, Pune’s real estate market has shown resilience and robust growth throughout 2024. Between January and September, a total of 1,38,412 properties were registered, marking a 29% increase compared to 1,07,627 units during the same period in 2023. This growth underscores the overall strength of Pune’s property market, despite seasonal fluctuations and temporary declines.

Stamp duty collections for the first nine months of 2024 reached Rs 5,253 crore, representing an impressive 38% year-on-year increase. This growth is a testament to the sustained demand for residential and commercial properties in Pune, driven by factors such as rising incomes, increased consumer confidence, and favorable financing options.

Pune’s Thriving Real Estate Market

Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasized the overall strength of Pune's real estate market despite the recent dip. He stated, "Pune's real estate market continues to thrive...Factors such as rising incomes, positive consumer sentiment, supportive financing options, and ongoing infrastructure projects are solidifying Pune's reputation as a top choice for homebuyers."

Pune remains a preferred destination for homebuyers due to its expanding infrastructure, growing employment opportunities, and relatively affordable housing options compared to other major cities like Mumbai and Bengaluru. Ongoing infrastructure projects, such as the development of the Pune Metro and new road networks, are expected to further enhance connectivity and drive property demand in the coming years.

While the property market in Pune saw a temporary setback in September 2024 due to the Shraddh period, the overall trajectory for the year remains positive. The city's real estate sector continues to attract homebuyers and investors, supported by favorable economic conditions and infrastructure developments. With strong year-on-year growth in property registrations and stamp duty collections, Pune's property market is poised for continued success despite short-term fluctuations.