Pune tops the list of most livable cities in India
Pune was reported to be the most liveable city in the country by the Ministry of Housing and Urban Affairs. A total 111 cities were surveyed based on four different metrics - governance, physical, social and economic infrastructure. The announcement is likely to have a positive bearing on the city’s real estate sentiment.
Infrastructure development on the radar
Pune is set to experience an infrastructure facelift with key projects in the pipeline such as Hinjewadi-Shivajinagar metro, Swargate-Katraj metro, Bus Rapid Transit System (BRTS) along the Pune-Mumbai Highway, revamp of smaller roads, and a 33 km-long ring road.
Govt fast-tracks Pune Metro
The State government categorised the third phase of Pune metro running between Hinjewadi and Shivajinagar as a ‘vital project’. The status would mean faster release of land, finance and other requisite assistances, fast-tracking the completion of the project. The decision to extend this line up to Hadapsar, too, spelled good news for homebuyers.
PMC approves development of IT parks
Pune Municipal Corporation’s (PMC) approval to create new IT Parks in Aundh, Baner, Balewadi and Kharadi would generate approximately one lakh sq ft of IT space in the city. Increased job opportunities are expected to propel housing demand in nearby housing locales such as Wakad, Pashan and Vishrantwadi.
NRIs eye Pune housing market for investment
As rupee slided against the US Dollar, Pune, Delhi and Mumbai, emerged as the NRI community’s top choices for earning healthy return on realty investments in the long run. NRIs are anticipated to crack deals worth Rs 100-150 cr as consortium, benefitting the residential, retail as well as commercial real estate markets.
The Jul-Sep 2018 quarter was marked by a resurgence in unit launches, and an increase in the affordable residential stock in Pune. Out of the 3,000 odd units which were added to the market this quarter, only 10 percent belonged to the luxury segment. With limited scope for revising property ‘asks’, average prices maintained status quo across fresh bookings and the resale segment. The rental landscape, however, gained steam due to robust demand, resulting in an annual uptick in prices by four percent. Infrastructure enhancements, commercial developments and faster project completions also helped the market report a happier tale than before.
Property sales remained buoyant through the quarter. The 10-day festive period of Ganesh Chaturthi, too, failed to record a colossal hike in sales volume, leaving the developer community disappointed. On the supply side, Category A developers took the lead in new project launches.
The attempts towards space optimisation significantly spiked the average project sizes to about 220 units per project. Liquidity crunch and increased cash outflows towards completing existing projects hit new supplies by Category B and C developers. In a bid to escape penalties under RERA, majority new projects came with prolonged completion timelines. The average time for completing residential projects has gone up by 2-3 years.
The market is expected to benefit from the increased conversions in affordable and mid-income segments. NRI interest in the city is also anticipated to benefit the luxury segment in the ensuing quarters.
In the backdrop of improved enquiries and residential demand, Pune’s realty market witnessed stability in Jul-Sep 2018. Approximately, 33,000 property registrations were reported in the quarter, in both primary and secondary markets. Majority of the conversions hailed from the fence-sitters who waited long for the market to gain strength.
Pune’s housing segment marked steady growth in Q2 2018. Close to 70 percent of the tracked housing localities recorded positive movement in the average capital prices.
Indisputably, affordable housing continued to nudge city’s realty growth. However, the mid-income units ruled the roost in the quarter with housing belts in the East and West bagging the maximum demand.
Karve Nagar in the East topped the popularity charts recording a four percent growth in its average capital prices, QoQ. One of the developed localities, replete with social and physical infrastructure and offering promising Returns on Investment (ROI), the area remained extremely popular amidst locals. Backed by similar factors, Kalewadi also registered a three percent appreciation in its average capital values.
Following suit, Wanwadi, Charholi and Mahalunge also garnered homebuyers’ attention, each recording a three percent hike in the average capital ‘asks’, QoQ.
While Wanwadi being a famous cosmopolitan, sustained homebuyer’s interest, Charholi’s popularity can be attributed to the influx of reputed developers and the emergence of quality projects in the last six months. Unlike earlier, increased availability of the state-of-the-art projects, encapsulating latest amenities and conveniences has triggered the per sq ft rate in the area.
Rental market continued to show resilience in the micro-markets near the IT hubs. Localities such as Tingre Nagar, Shastri Nagar, Hadapsar, Sasane Nagar, and Lullanagar remained the key standouts, each recording a nine percent growth in its average rental prices, YoY.
While proximity to the posh locale Viman Nagar led the landlord community to quote higher lease values in Tingre Nagar and Shastri Nagar, Hadapsar and Sasane Nagar benefitted on the back of the extension of the Hinjewadi-Shivajinagar metro link to Hadapsar and nearness to Magarpatta IT Park.
Lullanagar, a sub-locality of Wanwadi and one of the biggest trading centers in the city, remained a favourable rental destination for locals, who moved out of their small ancestral properties based in Lullanagar but preferred an accommodation within the area to stay close to work and ancestral property. The trend has put an upward pressure on the annual rental values in Lullanagar.
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.