PCMC bans commercial development along BRTS and metro corridors
The Pimpri Chinchwad Municipal Corporation (PCMC) banned commercial development near the Bus rapid transit system (BRTS) and metro rail corridors, spelling good news for commuters and residents.
Civic body enforces new DC rules in PMC areas
Taking a stringent action against the outbreak of illegal buildings, the Pune Municipal Corporation (PMC) implemented the revised Development Control (DC) rules in the newly added 11 villages. This would help curb unauthorised construction in these areas. Further, the decision to publish details of all illegal properties online is a step towards ensuring transparency.
Metro construction picks pace in Pune
The metro construction in Pune seems to be on full-swing. After the Centre allocated a budget of Rs 1,300 crore for Pune Metro, the Maha-Metro started the work on Karve Road. While the construction on Paud Road is already underway, the 5 km-long underground section of the Pimpri-Swargate Metro corridor is also expected to begin by June 2018.
Kalewadi Phata BRTS lane opens to public
After a seven-year delay, the 10.5 km-long BRTS stretch between Kalewadi Phata and Dehu Alandi was made functional. The development has ensured seamless travel from Pune to Lonavala and is touted to act as a real estate catalyst for the connected areas.
Singapore roped in for preparing development plan
The State government signed a Memorandum of Understanding (MoU) with Singapore to formulate Pune Metropolitan Region Development Authority’s (PMRDA) development plan. A comprehensive land-use plan will be created, which would develop centers as models for subsequent development.
As regulatory stability set the tone in Maharashtra, Pune’s realty sector maintained the inherent optimism in Apr-Jun 2018. The quarter was marked by a miniscule price correction, increased number of enquiries, amplified sales and multiple project announcements. While April was sluggish, the subsequent months witnessed the market gaining buoyancy.
Ready properties and projects close to possession, especially by Grade A developers, remained the prime choice of consumers. Uncertainty over timely completion and GST liability kept buyers wary of the under-construction segment. Buyer preference concentrated towards the affordable and mid-income housing categories. The city reported approximately 60 percent of the new project registrations in the affordable segment.
The Mumbai-Pune Expressway and IT/ITeS catchment that now spreads from Baner and Balewadi in the West to Yerwada, Kharadi and Magarpatta in the East kept the sentiment upbeat. On the contrary, distressed luxury segment hit the nadir. Limited site visits were reported for properties priced over Rs 90 lakh.
RERA registration remained a pressing concern with nearly 900 projects still waiting for approvals. Small builders with projects in city peripheries were the worst-hit. However, the market is anticipated to pick up the pace by upcoming Ganesh Chaturthi, followed by a temporary lull, and then a momentum with the onset of Diwali.
Pune’s housing market noted a marked improvement in Apr-Jun 2018, albeit marginal price hike over the previous quarter. Increased consumer activism, infrastructure development, base price corrections and new project launches kept real estate sentiment positive. RERA registered projects remained the prime choice of consumers, capturing maximum enquiries in the period. However, there were only a few options to choose from as majority of the projects were still not listed under the law.
Ready-to-move units remained the flavor of the season, grabbing maximum demand from homebuyers and investors. Demand for under-construction units suffered at the hands of higher tax rates coupled with the universal fear of project delays that prevailed amongst the cautious millennials. While demand dwindled, supply across both the categories reported an upsurge.
Property owners who flinched earlier, put their products back on sale pushing the overall supply of ready-to-move units. Besides, RERA implementation also helped in effective completion of stalled projects. Supply of under-construction units recorded an uptrend too, backed by new project launches. Barring, affordable segment, supply across all budget ranges remained inconspicuous.
Eastern and western quadrants of the city outshined other zones with maximum enquires, sales and new project announcements. Undri and Pisoli in the East and Wakad, Baner, Aundh and Balewadi in the West garnered maximum popularity. Undri topped the charts with an average capital growth of four percent, QoQ, followed by other locales which saw average capital prices surging by one to three percent, QoQ.
While Undri and Pisoli remained popular on the back of spill-over demand from Hadapsar and Kharadi, demand in western micro-markets was driven by proximity to Hinjewadi, an influx of economic projects by reputed builders such as VTP Realty, Godrej and Shapoorji Pallonji and expanding road connectivity at Jagtap Dairy Junction. Smaller configurations of 1BHK and 2BHK units with a packaged price of Rs 30-40 lakh and Rs 50-70 lakh respectively, were the most preferred.
The all time favourite IT and commercial belt of the city also witnessed increased buyer attention. Koregaon Park, Kharadi and Viman Nagar remained the key standouts along the stretch. The boom in shared workplaces and demand-supply disequilibrium pushed the ‘ask’ rates up in these areas by 1-4 percent, QoQ.
Alike the capital market, rental market also showed resilience in the IT hubs or pockets situated in the vicinity. Vishrantwadi, Viman Nagar and Kalyani Nagar emerged as the key market bearers witnessing 3-6 percent growth in the weighted rental prices, YoY. A scarcity of rental inventory in these pockets helped the landlord community to quote a higher lease prices. Wakad, too, enjoyed increased rental demand on the back of factors mentioned above.
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