Pune's realty market is an ideal and safe residential investment market as compared to other Indian cities. Pune has maintained its status as a safe residential realty investment destination unlike Delhi NCR, where residential real estate prices saw depreciation during the last two years and Mumbai, which saw a marginal appreciation over the same period.
It is one market where the real estate is well priced with a wide assortment for different buyer needs. The city being an IT and manufacturing hub, there is a continuous demand for homes. “With assured returns on houses at a constant rate of year-on-year appreciation, Pune has been a favourite location with investors who are averse to high risks,“ says Sanjay Bajaj, managing director Pune , JLL India.
Pune also has a great opportunity for geographical expansion. The city is well connected to Mumbai and several holiday destinations like Goa, Mahableshwar and Khandala making it a perfect city to invest in real estate. “We see real estate prices in the city starting from Rs 4,000 per sq ft and ranging up to Rs 15,000 per sq ft, says Kishore Bhatija , MD Real Estate Development, K Raheja Corp.
In the eastern corridor of Pune, Wagholi and Kharadi have close proximity to major IT development and manufacturing hub and developing quickly. “In the southeast of Pune, NIBM, Undri and Hadapsar are emerging residential locations with quick access to camp, Pune station, Swargate, major highways and in close proximity to Magarpatta IT Park, major schools, clubs and hospitals,“ says Bhatija. He adds that Hinjewadi and adjoining areas like Wakad, Baner, Balewadi, Pirangut belonging to the western corridor of Pune are developing excellently. Additionally, connectivity to Mumbai and infrastructure development by PCMC have played a key role in accelerating development in these city parts.
The city is largely a mid-segment market when it comes to residential properties. 'Sweet spot' for buyers in this segment lies between Rs 4,500 and Rs 5,200 per sq ft. “In other words, a 1,000 sq ft flat costing about Rs 50 lakh forms the median ticket size in the city. Most buyers prefer to book houses in the pre-launch stage, especially at rates around Rs 4,600 per sq ft,“ says Bajaj.
Despite their proximity to each other, Mumbai and Pune are two very different markets. Mumbai's legendary space crunch has made residential property there exorbitantly costly, driving more and more aspiring middle-income home buyers to the fringes. Meanwhile, Mumbai continues to grapple with its infrastructure deadlock. Prices in most areas of Mumbai have stagnated and there is a considerable pressure from the market to bring them down. On the other hand, Pune's residential property market has maintained its momentum even in a challenging economic environment. Various research agencies have confirmed that Pune has prevailed as one of the best-performing residential real estate markets over the past two years. Residential sales have remained healthy enough to sustain the viability of the city's real estate market, encouraging Pune's developers continue to launch fresh residential projects in all budget categories affordable housing, mid-income housing and even in the super-luxury category.
“Today, the annual demand for homes in Pune is close to 46,000 units, where it was less than 20,000 units per annum just 15 to 20 years ago. While Mumbai is staggering under the weight of unsold units all across the city, supply and absorption of homes in Pune continues to make both property development and property investment eminently viable , “ says Kishor Pate, CMD Amit Enterprises Housing Ltd.
Bajaj concludes that the current inventory level stands at 16 months, which is slightly higher than the last six year's quarterly average of 15 months. This is a healthy figure, and reflects demand-supply equilibrium. For buyers, this means that once the right price point and overall ticket size as well as the location matches their requirements, it is advisable to go ahead with the purchase.
Source - Magicbricks News
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