We have established a formidable presence in western India's real estate landscape, particularly in Pune.
Atul Bohra
Group CEO, Kolte-Patil Developers Ltd
How do you look at the current scenario of real estate market in India’s western region? What is the demand trend in residential and commercial segments?
The real estate market in India's western region, especially in Mumbai and Pune, is experiencing robust growth driven by strong sales, infrastructure development, and evolving customer preferences. Both cities are witnessing significant residential sales and new project launches. Mumbai’s residential sales (units) increased by a strong 16% in H1 2024 YoY, while Pune saw a 13% rise in sales (units) in H1 2024 compared to the same period in 2023.
A key factor fueling this growth is extensive infrastructure development in the region. In Mumbai, projects like the Mumbai Trans Harbour Link, Coastal Road project, Navi Mumbai Suburban Rail Phase-2, and multiple Metro lines are enhancing connectivity, leading to residential expansion in areas like Navi Mumbai, Thane, and the Western Suburbs. Similarly, Pune benefits from initiatives such as the Pune Metro Rail expansion, the Pune Ring Road, and improvements to the Bus Rapid Transit System (BRTS).
How is the growth trend in affordable and luxury real estate markets in western market?
The luxury real estate sector is witnessing strong growth, with Mumbai recording an 8% increase in sales of homes priced at Rs. 10 crore and above, reaching Rs. 12,300 crore in the first half of 2024. This growth is characterized by a shift towards larger apartments, especially in the 2,000 to 4,000 sq. ft. range. Pune has seen a dramatic surge in luxury housing sales (each unit costing Rs. 4 crore and above) with 1,100 units sold from January to June 2024 marking a growth of 450% YoY.
On the overall, the luxury market is experiencing a surge, fueled by the rising income levels, increasing aspirations for luxurious living, and a growing demand for sophisticated features such as smart home automation and wellness-focused amenities. A significant 53% of homebuyers in Mumbai's luxury real estate market, specifically those purchasing properties valued at over Rs. 10 crore, fall within the 35-55 age bracket. This demographic represents a key segment of the high-end housing market, indicating that affluent individuals in their mid-career to pre-retirement years are actively investing in premium residences.
Meanwhile, the affordable housing market has not grown at similar pace. A 21% decline in affordable apartment supply (priced below Rs. 50 lakh) has been recorded across key Indian cities, with the market share of affordable homes shrinking from 27% in Q1 2022 to 15% in Q1 2024. This downward trend indicates a market shift towards mid-premium and luxury segments.
Pune is fast becoming a huge market for residential and commercial properties. What are the emerging trends here?
Pune is rapidly establishing itself as a key market for both residential and commercial properties, driven by several emerging trends. The city has maintained its leadership in home sales for the first half of 2024, marking the third consecutive year of growth. The 36% volume increase, compared to the same period in 2019, highlights Pune's strong demand and rising status in the real estate sector. This growth is fueled by Pune's expanding role as an IT and manufacturing hub, which is driving demand for homes near workplaces. On the commercial front, evolving work patterns have led to a surge in demand for flexible office spaces, with net office demand rising from 1.34 in Q2 FY24 to 1.8 million square feet in Q2 FY25. Pune’s status as a prominent IT hub continues to attract businesses of all sizes, fostering diverse office developments that cater to modern business needs.
Pune’s high quality of life and livability continue to attract residents, enhancing the city's appeal as India’s second desirable places to live, as per the Ease of Living Index in 2024. This has led to increased demand for housing across various segments. Another significant trend is the surge in redevelopment projects, with a large number of aging buildings being upgraded to modern standards. Approximately 30% of the district's 33,000 housing societies are slated for redevelopment, breathing new life into older areas and contributing to the city's evolving urban landscape.
Additionally, Pune’s strategic location and ongoing economic and infrastructure development have led to steady property appreciation. The strong rental market, driven by high demand from professionals and students, further strengthens the city’s real estate appeal, making it an attractive option for investors seeking stable and profitable opportunities. Catering to this growing demand, reputable and trusted developers including Kolte-Patil Developers are characterized to provide a robust offering of quality projects.
Can you give us an overview on your presence in the western region market? How do you look at the overall market opportunities in the region? What could be the trends to look for in future?
We have established a formidable presence in western India's real estate landscape, particularly in Pune where we have maintained our leadership position as one of the top three developers since our inception. Further, our expanding footprint in Mumbai positions us strategically to capitalize on emerging market opportunities. With over 30 years of legacy, the company is recognized as a trusted, customer-centric brand that emphasizes innovation, and quality. Our project portfolio spans around 35 million square feet for projects under execution, approval and land bank, as of today. With a planned launch potential of Rs. 8,010 crore and 8.92 million sq. ft. of saleable area in FY25, the growth prospects are significant.
We aim to generate 70% of sales from Pune and 30% from Mumbai and Bengaluru, targeting a consolidated sales CAGR of 25% between FY 2024-25 and FY 2026-27.
In Pune, we have a robust total project portfolio of 32.10 million sq. ft. showcasing our in-depth expertise in understanding evolving customer lifestyles and aspirations. We are capitalizing on this positive market sentiment with a series of planned launches in FY25, catering to high demand for residential properties. Our latest offering, Canvas, a luxury addition to Life Republic Township in Hinjewadi, exemplifies our holistic approach by integrating superior design, premium amenities, and sustainable community living. Additionally, we have on-going projects, 24K Manor (Pimple Nilakh) and 24K Altura (Baner) under the 24K brand catering to premium luxury segment. Overall, our various projects are spread across the city with offering across MIG/HIG to the premium luxury segment, further strengthening our leadership in this fast-growing market.
The Mumbai real estate market is witnessing significant surge driven by redevelopment initiatives. Recent announcements, such as the Rs. 8,498 crore slum rehabilitation project approved by the Mumbai Metropolitan Region Development Authority (MMRDA) in Ghatkopar East, highlight efforts to meet housing demands. In addition, the government been taking sustained efforts in the form of infrastructure projects and improved efficiencies/incentives to provide optimal lifestyle opportunities to the city dwellers. Kolte-Patil Developers remains at the forefront, with 14 projects across the Mumbai Metropolitan Region (MMR), including two completed landmarks. Our pipeline potential stands at Rs. 4,000-crore, demonstrating our expertise in complex, large-scale developments.
As the western region continues to evolve, we are poised to leverage trends and drive future growth, empowering families to strive for superior quality living. Our commitment to quality, innovation, and customer satisfaction remains unwavering, solidifying our position as a leader in western India's real estate market.
