PCMC tightens noose on civic officials
The Pimpri Chinchwad Municipal Corporation (PCMC) made civic officials responsible for regulating illegal constructions in their jurisdiction. As per records, Pimpri Chinchwad has about 66,000 illegal structures and the move is likely to cleanse the market of unscrupulous builders.
Government extends Pimpri-Swargate metro line till Nigdi
The Phase II of the metro link, earlier proposed to be developed between Pimpri and Swargate, will now be extended till Nigdi. The development is anticipated to foster realty growth along the stretch.
State eases redevelopment norms in Pune
The redevelopment of housing societies in Pune would now entail only 51 percent of residents’ approval than the earlier 70 percent. The announcement has elated the homebuyer community, who have been lobbying to get their properties revamped for a long time.
PMC offers tax rebate on eco-friendly projects
Pune Municipal Corporation (PMC) announced property tax rebate of two and three percent to properties equipped with solar roof tops, and rain water harvesting, solar and vermicompost, respectively. A rebate of 10 percent would be offered to properties powered with all these amenities.
Smart city project faces impasse
Several infrastructure plans under the Pune Smart City project have faced opposition from PMC owing to the alleged unfair tendering process. The municipal body has cancelled all the bids pertaining to water supply and traffic management system and will float fresh tenders in future.
Pune at a Glance
Showing some signs of revival, the IT-driven market of Pune was testimony to an improvement in housing sentiment and residential enquiries. While RERA put new launches on the back-burner, homebuyers displayed an increased affinity towards ready units with 70 percent responses recorded for possession-ready and resale homes. The under-construction segment continued to be plagued with distrust and uncertainty.
The city recorded a four percent improvement in overall sales in Jul-Sep 2017 as compared to 2016. ‘Compact homes’ came to the market’s rescue as the most sellable and desired entity.
With increased government focus on affordable housing, the city peripheries have come to the forefront, registering maximum buyer activity for apartments priced within Rs 40 lakh. The trend is certain to continue in the ensuing quarters, as well, with several proposed infrastructure projects in the outskirts including ring road, metro rail link and international airport in the pipeline.
The city gained immensely from the State’s launch of the MahaRERA website and the authority’s proactive stance on project and complaint registration in both Pune and Mumbai. By the end of September, the State alone captured more than 70 percent of the total projects registered across the country. This helped Pune’s housing market score over other metros in terms of sales volume, falling unsold inventory and buyer sentiment. The commercial market, too, witnessed an uptrend with office space leasing flying high. The preference for Grade A spaces, hovering between 4.5 and 6.5 percent of the total demand, continued to outstrip supply, especially in the eastern corridors of the city.
With buyers primarily focusing on affordable homes in Pune, capital appreciation remained modest in Jul-Sep 2017 as compared to the previous quarters. Peripheral areas such as Pirangut, Bhugaon, Wagholi, Dhanori and Hinjewadi drew maximum demand from budget homebuyers. Lower ticket sizes, coupled with seamless connectivity to the city’s prime IT hubs were seen as major growth drivers for these micro-markets.
- Sharing a similar fate as that of Mumbai, under-construction housing segment struggled for buyers in Pune. Scepticism pertinent to timely delivery of projects coupled with RERA uncertainties marred the popularity of unfinished units in Jul-Sep 2017.
- Ready-to-move and resale segments in the city ensured buoyancy in the market. Approximately, 70 percent of the listed micro-markets offering ready inventory either reported an uptrend in the average capital values or displayed stability. The western quadrant remained the prime focus of homebuyers.
- Bavdhan and Pirangut in the West garnered maximum housing enquiries and reported a five percent increase in the average ‘asks’, QoQ. Adjacently located, both the markets drew their popularity from proximity to established locales such as Kothrud and Hinjewadi, and smooth connectivity to Mumbai-Pune Expressway, Pune-Bangalore Highway and Paud Road. Additionally, price-competitiveness also played a prominent role in uplifting housing sentiment in Pirangut.
- Kharadi, a prominent IT hub, also emerged as one of the top capital performers in the current quarter. The pocket captivated professionals looking for a home close to their offices, thus ensuring a competitive housing market.
- Unlike the capital market, residential leasing picked pace and posted a two percent growth in the average yearly rentals. The market claimed its growth to the IT boom in the city, especially along the peripheries.
- Phursungi in the Southeast emerged as the frontrunner with 12 percent growth in average rentals, YoY. Availability of fresh inventory and robust rental demand from working populace in Hadapsar led to the hike.
- Buoyed by seamless connectivity to the IT hubs of Magarpatta and Hinjewadi, Shivane witnessed 11 percent hike in rental values, YoY. Other micro-markets that remained on the top of the rental charts include established centers such as Kothrud and Kharadi.
Like other metros, Pune’s housing market reeled under the effect of RERA and GST, resulting in restricted new launches in Q3 2017. However, smooth and quick RERA implementation restored buyer confidence in the real estate sector of the State. Pune is one of the few metros where the luxury segment also witnessed buyer traction along with the mid and affordable housing segments.
- Affordable segment with housing units pegged within Rs 40 lakh continued to grab maximum popularity in the quarter ending September 2017.
- Demand for mid-income segment homes witnessed a slight improvement of two percent from the previous quarter. As under-construction units struggled for takers, ready-to-move and resale units continued to be on homebuyers’ radar.
- High-income and luxury segments, too, displayed significant variations in their demand and supply dynamics. Against lean demand, these segments recorded four and two percent respective growth in the availability of housing units. With limited supply of new units in the quarter, the trend emerged on the back of elite home owners attempting to dispose off their properties and exit the market.
- In line with the previous quarters, the availability of homes in the ultra-luxury segment remained unchanged, QoQ. However, supply of these units narrowed down by two percent in the last one year, denoting a continuous shift in the developers’ interest from ultra-luxury to other segments.