Pune Realty To Spin in 2015
With the prices of the major micro markets unrealistically high and only a few stable localities, Pune real estate has witnessed a major boom over the years. Pune realty stood firm while the other cities decelerated, majorly because of the increasing demand from the IT/ITES sectors, leading to abundant unregulated development. Besides, property prices in Pune are relatively affordable as compared to the markets of MMR and NCR. Therefore, Pune is attracting numerous investors and end users. The demand for housing in Pune increased to about 46000 units where it was 20000 units 15 years ago.
Accommodation in 2015 and 2016
The rapid growth of Information Technology, changing demographics and a massive extent of organized retail characterize Pune’s property market. These factors also influence the Pune property market both in terms of size and property type. As per Commonfloor’s Annual Realty Report, Pune has seen the launch of about 230 projects during the year 2014 out of which 29 per cent projects were launched in the west region, 23 per cent in east region, followed by 22 percent in South and only 5 per cent in the central part of the city. 90% of the new launch plans hold a copious number of small and mid-size projects (less than 500 units each), confirming the fact that Pune will offer abundant ready-to-move-in properties in 2015 and 2016.
Why Buy, Not Rent?
The increasing demand for affordable real estate was carried out mainly by the service class. The town planning commission has been increasing infrastructure challenges to provide for the ever-growing population in the city. Minor localities have developed and expanded as a result of the availability of land for development.
People have taken to purchasing properties instead of renting, facilitating saving a significant chunk of money after buying a home in a fitting budget.
Pune’s emergence and growth as an IT/ITES destination in 1990 was restricted to the BPO sector. But with the rapid increase IT has seen, Pune is bucking up by providing residential properties with the basic requirements, provisions with less unit size. This has attracted back the multinationals that were diffident in investing in the Indian market due to the undistinguished political scenario. Due to the better pay scale of the IT industry, an increasing number of IT professionals are opting to own a home instead of renting one. Such decisions are based on their budget and proximity to their workplaces. Due to a sudden increase in the demand for homes in Hinjewadi, the surroundings swiftly gained attention, reducing the demand for other central areas. Scores of residential projects were launched in Aundh, Wakad, and Baner. The Pimpri-Chinchwad is also witnessing an increasing demand by well-paid employees, owing to its vicinity to industries.
Property rates in Pune have increased by 15-25% and land rates which have been increased by a shocking 20% to 100%. This is sure to have a strong impact on home buyers and the real estate sector in Pune.
The key growth area of Pune is considered to be the private housing sector, as per the PWC report. In the mid segment of 2015, the price values of Aundh, Wakad, Balewadi appreciated in the range of 6–10%, while 10-20 % growth was seen in the premium segment.
Currently, the areas are priced as:
Aundh: Rs 7,352- Rs. 8,500/ sq. ft
Chinchwad: Rs 4,972- Rs. 6,120/ sq. ft
Hinjewadi: Rs 4,972- Rs. 5,568/ sq. ft
Pimpri Chinchwad: Rs 4,505- Rs. 5,058/ sq. ft
Warje: Rs 5,398- Rs. 6,035/ sq. ft
Latest Luxury Addition
Pune has undergone the commencement of super luxury homes project by a US-based realty company Trump Towers in direct association with Pune-based Panchashil Realtors. The Trump Towers in Pune are a pair of towers in glass and granite facades, each one containing 23 flats with a total area of 6,100 square feet, priced at Rs 22,000 per square feet.
According to the Indian Real Estate Report 2014, the year has been relatively productive for the real estate sector in terms of business sentiment. The JLL report states that Expanding operations of multinational companies, infrastructure development, and government’s agenda – Housing for all is expected to boost the buyer sentiment and purchasing activity in 2015 year. It is calculated and predicted to experience a spin in 2015.