Affordable housing takes centre stage
Civic bodies in Pune and Pimpri Chinchwad plan to construct around 35,000 housing units under PMAY in areas such as Mundhwa, Yerwada, Kharadi, Hadapsar, Vadgaon, and Wadgaon Sheri. Additionally, the Maharashtra State Road Development Corporation (MSRDC) has proposed the construction of over 16,000 affordable homes along Mumbai-Pune Expressway.
Metro expansion in full-swing
The State government laid the cornerstone of the third metro corridor in the city. The new link between Hinjewadi and Shivajinagar will not only save the travelling time but also boost housing demand in neighbouring localities.
Wanowrie and Kondhwa to get rid of water crisis
Ministry of Defence has given its nod to the long-pending water pipeline in Wanowrie and Kondhwa, cheering over three lakh residents who have been battling a severe water crisis for years. Livability index is expected to soar high, benefitting housing demand in the belts.
Clearance certificate must for structures above 70 m
With three metro corridors underway and the Transit-Oriented Development (TOD) being the primary focus, Pune’s Urban Development Department expects an influx of high-rise proposals and has mandated technical committee’s approval for developing structures higher than 70 meter in the city.
Around 50 percent of ongoing projects outside the RERA purview
An online survey revealed that nearly 50 percent of the ongoing projects in Pune were not registered under the Real Estate (Regulation and Development) Act (RERA). Besides, many builders even failed to register the sale agreement despite having availed 10 percent of the property value.
The first two quarters of 2018-19 were characterised by multiple struggles for the real estate market of Pune including, but not limited to, declining demand and a limited number of new launches. Consequently, almost all popular residential pockets witnessed price correction. However, multiple efforts by the Maharashtra government to create an enabling environment helped the market gain some foothold by the last quarter of 2018. The city recorded a 20 percent upsurge in demand for residential apartments in Oct-Dec 2018 vis-à-vis Oct-Dec 2017.
While ready units topped the popularity charts, limited supply in the category shifted homebuyers’ interest to projects nearing completion. New marketing strategies such as no EMI till possession and packaged selling helped build traction and affirmed buoyancy in the otherwise neglected ongoing project segment. Affordable units priced within Rs 45-64 lakh, too, garnered healthy demand.
In a bid to dispose of the 14-19 months unsold stock as of March 2018, developers restricted new supply. Close to 18-20 projects including phases, were launched during the quarter in areas such as Hinjewadi, Wakad, Baner and Keshav Nagar, Kharadi, Undri and Mohammadwadi. With a 70 percent dip in NRI demand in the last two years, premium properties bore the maximum brunt across budget segments.
The year 2019 is expected to witness a strong upswing, in both buying and renting segments. Single-window clearance mechanism, if approved in the upcoming Union Budget, will not only augment the building experience for developers but would mean faster project deliveries for customers.
The Oct-Dec 2018 quarter was a period of revival for Pune’s real estate sector. Both demand and supply recorded an uptrend backed by strong economic fundamentals, incentivising schemes and a host of marketing strategies introduced by developers around Diwali. Infrastructure overhauls and growing focus on affordable housing are expected to drive growth in the coming quarters.
The year 2018 has been a mixed bag for Pune’s residential market. While the building and buying benefits under PMAY helped affordable housing lead the pack, the premium housing segment continued to face the heat on the back of subdued demand.
The last quarter of the year, however, marked a period of revival for Pune’s real estate sector. Both demand and supply recorded an uptrend backed by strong economic fundamentals, incentivising schemes and a host of marketing strategies introduced by developers around Diwali. The average property prices in the city, too, witnessed a positive movement, albeit minimal.
The western quadrant of the city continued to outshine other zones majorly driven by new supply. Areas such as Hinjewadi, Baner, Wakad, and Kalewadi remained the prime focus of realty stakeholders. While the recent metro announcement benefitted the IT hub of Hinjewadi, the micro-markets of Baner, Wakad and Kalewadi witnessed traction on account of proximity to the former.
Infrastructure developments and a growing emphasis on affordable housing opened up new avenues in the city peripheries such as Dehu, Dhayari, Manjiri and Kanhe. With average weighted capital values pegged between Rs 3,000 per sq ft and Rs 4,000 per sq ft, these areas witnessed maximum demand for compact homes configured as 1 BHK units.
The outlying areas such as Phursungi, Akurdi, Kalewadi, Karve Nagar and Handewadi emerged as the top grossers and recorded three percent hike in the average weighted capital prices, each, in Oct-Dec 2018 vis-à-vis the Jul-Sep 2018. Competitive property prices, ongoing metro project and proximity to the IT hub magnetised homebuyers’ attention to these micro-markets.
Demand for budgeted properties priced within Rs 25 lakh occupied 50 percent of the market share followed by mid-income segment pegged between Rs 40 lakh and Rs 60 lakh. On the contrary, enquiries for luxury and ultra-luxury properties ranging from Rs 1-2 crore and Rs 2 crore and above, respectively, remained on the back-burner. An unchanged share in the market demand for the two categories served as testimony to this fact.
The rental market remained positive and essayed robust growth in the average rental yields to the tune of three percent, YoY. Rentals in the micromarkets such as Phursungi, Katraj, Manjri and Bhosari recorded an uptrend of around eight percent, each, YoY.
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