- Land parcels across city peripheries witnessed good traction and healthy capital appreciation in Jan-Mar 2016 as against Oct-Dec 2015 on account of comparative affordability to residential plots in city centres.
- Areas that scored well on return on investment (ROI) charts included belts such as Pune-Satara Road and localities such as Saswad, Kamshet and Yavat, witnessing average quarterly hike between two and five per cent.
- Recent road infrastructure upgrades including the ring road connecting key thoroughfares such as Pune-Nashik, Pune- Ahmednagar and Pune-Satara road have given a fillip to the realty market across these stretches. The belts have become decongested and easily accessible from the city-centres, thus recording healthy demand from investors.
- Pune’s residential landscape largely plateaued in Jan-Mar 2016 over Oct-Dec 2015 owing to unsold inventory in high-end and luxury housing segments.
- Wadgaon Sheri, a suburb across Pune- Ahmednagar Road offering property priced around Rs 6500 per sq ft, topped the capital growth chart with a five per cent rise owing to its proximity to IT/ITeS companies, robust social infrastructure and proposed road and rail projects.
- Average capital rates in premium residential localities like Koregaon Park, Sopan Baug, Baner and Kothrud stagnated and hovered between Rs 7,000 and Rs 11,000 per sq ft.
- Housing market in North Pune picked up in Jan-Mar 2016. Alandi Road, Vishrantwadi and Moshi witnessed capital appreciation between two-four per cent.
- The rental market in Pune noted an average growth of two per cent YoY. Localities in and around IT hubs, manufacturing industries and educational institutes magnetized a lion’s share of the tenant community.
- Majority of the housing demand concentrated in affordable areas such as Ambegaon, Manjri and Nigdi, Bhosari and New Sanghvi. The localities witnessed a healthy rental appreciation to the tune of seven to nine per cent YoY.
- Manufacturing base in Bhosari and Nigdi uplifted the rental market in these two localities. Overall, smaller configurations such as 1 and 2BHK units were more in demand.
- Limited supply of housing units helped Market Yard gain a nine per cent appreciation in the rental values between Jan-Mar 2015 and 2016.
- Rental market of premium localities like Viman Nagar, Law College Road and Kothrud witnessed a restrictive growth between two per cent and three per cent. High rentals dissuaded prospective tenants to choose alternate options like Wadgaon Sheri and Chandan Nagar.
- Rental markets of Ambegaon and Manjiri grew by nine per cent each. While Ambegaon is preferred for its connectivity to Mumbai-Bangalore highway and proximity to Hinjewadi, Manjri attracts Magarpatta’s workforce for its pocket friendly housing options.
- High migrant population is expected to keep Pune’s rental market upbeat in FY 2016-17 as well.
Unlike most other metros, where supply of new projects dwindled considerably on account of inventory overhang, Pune maintained its new launch pace with around 32,000 new housing units in FY 2015-16. Jan-Mar 2016 saw maximum project completions in high income housing segment.
By Property Type
- Catering to the working migrant population, Pune draws maximum demand for society apartments, which are equipped with all modern amenities and off er a secured living.
- Supply continues to be in line with the market preference and a major chunk of the inventory belongs to residential apartments.
- A noticeable trend this quarter has been a slight increase in availability of independent houses/villas, driven by rising inventory in this segment.
- Despite huge supply volumes, premium projects priced over Rs 60 lakh continue to languish. In line with other metro cities, Pune also witnessed maximum inventory overhang for this budget category.
- Adding agony to the situation, the affordable housing segm ent had only one-fourth of the total inventory share. However, maximum demand is concentrated for housing units priced below Rs 40 lakh.
- While localities such as Koregaon Park, Sopan Baug, Baner and Kothrud witnessed maximum new launches in premium residential category; Kharadi, Hinjewadi, Viman Nagar, Wakad, Tathawade, NIBM and Mundhwa offered apartments priced in the range of Rs 40-60 lakh.
- Newly emerging suburban locations such as Dhanori, Undri and Tingere housed the maximum number of affordable projects.
By Configuration Type
- Units configured as 2BHKs captured the maximum mark et supply in the city with almost half the share. While these units are more cost-effective than their larger counterparts, their average built-up area is around 900-1100 sq ft.
- Baner and Balewadi in the west and Kharadi in the east housed the maximum 3BHK units. These units fare second on the popularity and supply charts, considering the top-level working population in the city prefer spacious and bigger houses, measuring anywhere between 1200 sq ft and 1700 sq ft.
- Supply of 1BHK and 4BHK units did not alter much in Jan-Mar 2016 against the previous quarter. While 1BHKs captured almost 20 per cent of the total housing inventory, 4BHKs continued to be the least supplied, majorly due to a limited demand for this category.
By Construction Status
- Ready-to-move-in houses constituted almost three quarters of the total supply in ready-to-move-in category, leaving only 30 per cent for under-construction units.
- The overall supply of under-construction properties fell by five per cent in the quarter ending March 2016. This could be due to fewer launches in the last quarter of FY 2015-16 against Oct-Dec 2015.
- Moshi towards the North and Undri in South-East Pune took the lead with maximum supply for under-construction properties in the city. Magarpatta and Kharadi, the newly developing suburbs are also witnessing a number of new launches in the affordable housing category.
- Established localities including Wakad, Hadapsar and Wagholi housed maximum read-to-move-in properties in the city.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.