When we look at Pune’s real estate market, we see ample justification for its emergence as one of India’s most sought-after residential property investment destinations today. Its advantageous connectivity to Mumbai is only the tip of the iceberg, though this fact did play a big role initially.
The Phenomenal Growth of City has Fuelled Demand
Pune’s urban growth has been phenomenal, and each year sees more and more people migrating into the city from all over India.Property prices in prominent micro markets in Pune saw decent increase over the year 2014 with only a few localities being, more or less, stable. Despite the general slowdown witnessed across other major cities, Pune realty market stood resilient mainly due to high demand from the IT/ITeSsectors. Add to this, property prices are relatively ‘affordable’ in Pune in contrast to other markets such as MMR and NCR.Considering the concentration of population that is professionally active in the IT and manufacturing industries, there is now a greater demand for multi-storey apartments. Residential micro-markets like Kharadi and Wagholi in East Pune and Pimple Nilakh, Pimple Saudagar and Wakad in West Pune are seeing a lot of residential development, driven by good connectivity with the key centers of the city and the presence of good social infrastructure like schools, hospitals, malls and entertainment centers.
High Demand for Luxury Homes
The luxury homes segment has been burgeoning on the Pune’s real estate market, with many large players entering with projects. The city has witnessed launch of super luxury homes project by US based real estate company Trump Towers is association with Panchashil Realtors. The Trump Towers in Pune are a set of two towers in glass and granite facades. Each tower will have 23 flats with a total area of 6,100 square feet, priced at Rs 22,000 per square feet.However, we are now witnessing a slight shift in the development trend. Many new players on Pune’s real estate market are now venturing into affordable housing segment. This is obviously where the greatest demand lies.Affordable housing projects tend to be located on the outskirts, offer small 1–2 BHK flats and provide basic, no-frills amenities. Over the last couple of years, Pune has recorded a certain amount of growth in this segment. Interestingly, while there has been compelling growth in the high-end segment with luxurious 3-4 BHK homes, the budget housing story is far more attractive to investors. Players like Maple, Jalan Group, Vastushodh and Javdekar Group are now actively targeting this segment by providing decent amenities – and they have long-term plans of expanding into the entry-level housing segment.
Locations such as Moshi in Pimpri-Chinchwad, Pirangut on the Lavasa Road and Kirkitwadi ahead of the Sinhagad road are seeing greater development activity by local players such as UrbanGram, Vastushodh and AaplaGhar.
Inflation, including the house price component, has now been reduced to the lowest level in recallable history. Property buyers are back in force in most cities as enquiries have rebounded, and developers are finally intepreting the writing on the wall more accurately.