Pune residential market is stable and growing, as per experts. As compared to other cities, Pune is an end user market and therefore, the speculation is limited. The demand for residential apartments has been stable; however prices continue to move up.
The reasons for the Pune market performing better as compared to other markets are: a) NRI enquiries are offsetting what could have been a loss during this time of an economic slowdown, b) local businessmen continue to invest in the luxury segment fuelling the supply of premium properties by developers c) From investment point of view, the current residential rates being offered in Pune are comparatively more affordable than Mumbai.
Local realtors believe that the demand and supply balance has been good in the Rs 2 crore and above range. Raj Kumar, Propreitor of Max Properties says, “The above Rs 2 crore range is witnessing a good demand and supply balance. Panscheel recently launched a project and sold all its inventory on the first day of the soft launch itself.”
The mid segment (Rs 60-90 lakh budget category) has seen a 10-12 per cent increase in capital values in the last one year. The higher end category above Rs 4 crore range has seen an increase of 20-30 percent in prices, points out Raj Kumar.
Prime areas that are performing well in terms of values and demand are Kharadi, Wagholi, Wakad, Hinjewadi, Ravet, NIBM Road and Undri. Despite the fact that builders have unsold inventory, price levels are not coming down. Some of the builders are offering various schemes like no charge on registration, no stamp duty etc.
Kirran Shinde of Expat Builders says, “Compared to Mumbai, Pune is seeing better demand because even in the most prime areas, properties are available from Rs 7,500-8000 per sq ft, making it easier for everyone to invest.”
Previously, people used to buy land and pay in lump sum amount. Now, developers are giving the option of paying Rs 1 lakh down payment and then regular instalment, making it easier for the middle class to invest, adds Shinde.
Atul Paigude of Rutu Raj Estates points out that demand in areas like Wagholi and Kharadi is very high. “Since the average rates are still around Rs 4,500 per sq ft, it is great from investment point of view as all the IT companies are coming around this area.”
Weak June-Sept quarter
Raj Kumar highlights that as compared to the Apr-June quarter this year, the July to Sept quarter has been quiet primarily due to – lots of rains pulling down the enquiries and the weakening rupee.
End user who has no choice is still buying while the investor is holding the decision to buy in the anticipation of a fall in prices, says Raj Kumar.
All the development has moved to the outskirts of Pune as there is not much scope of reconstruction in the city centre, said Kirran Shinde. “Moshi, Wagholi and Phursungi are the most sought after areas. They are in outskirts and not under PMC but within the next 6 months to one year, these areas will also come under PMC and the prices might double. So this might great time to invest,” he said.