Despite the real estate market experiencing a tough time all over the country, Pune is one place where the effects have been minimal. What exactly makes this place a new reality hub?
Pune, the cultural capital of Maharashtra is the seventh largest metropolis in India. It is famously called as the Queen of the Deccan and has a glorious past, best described by the magnificent forts and palaces. Today, Pune has emerged as a true cosmopolitan city and a buzzing commercial center. Last one decade has particularly seen a complete metamorphosis in the landscape and characteristics of the city. Narrow roads and high rise towers have taken the place of large vacant open spaces. Real estate market has flourished to new heights and Pune has emerged as one of them most preferred destinations for affordable housings.
Market Summary
Pune’s reality sector has seen the launch of more than 130,000 housing units since 2009 and the vacancy rates are also pretty much in control at 21 percent. When compared to other real estate hubs, like Delhi/NCR and Mumbai, which have a market vacancy level of 30 percent, it is clear that Pune definitely has an edge. Pune’s most active category is the middle level housing, which is available in the range of Rs 40-80 lakh and 70 percent of the supply will be ready for possession by the fourth quarter of FY13. Most of these mid-income homes are coming up in areas like Pimple Nilakh, Aundh, Wakad and Hinjewadi.
Pune’s reality sector has seen the launch of more than 130,000 housing units since 2009 and the vacancy rates are also pretty much in control at 21 percent. When compared to other real estate hubs, like Delhi/NCR and Mumbai, which have a market vacancy level of 30 percent, it is clear that Pune definitely has an edge. Pune’s most active category is the middle level housing, which is available in the range of Rs 40-80 lakh and 70 percent of the supply will be ready for possession by the fourth quarter of FY13. Most of these mid-income homes are coming up in areas like Pimple Nilakh, Aundh, Wakad and Hinjewadi.
Growth DriversThe growth in Pune’s residential market is driven by the working class, which is employed in the IT/ITeS sectors. Most of these professionals prefer gated communities that have houses, flats and apartments with good lifestyle features matching their expectations. Infusion of new corporate firms has also created a demand for more flats for rent in Pune for the young migrants. The new generation of realtors are giving the real estate market a fresh outlook. Pune is essentially a youth driven market, where every industry, right from IT and ITeS to automobile and retail has lots of young blood. Pune’s reality sector is also affected by local factors, of which Horse racing is the prominent one. Pune’s residential requirement increases significantly in the racing season. Extending over a month, the racing events attract enthusiasts from all over the country. Many of these affluent spenders look for a reliable and comfortable living arrangement during this period and therefore do not shy from either renting or buying houses or villas for themselves.
Sustained growth or just a bubble?
Trends suggest that Pune will continue to experience healthy consumer demand in the near future also. The local economy is thriving and so is the demand for retail and commercial properties. With IT/ITeS sector still witnessing an upward surge, Pune will continue to see the influx of more white collar professionals, which will again increase the demand of flats for rent in Pune, along with other residential properties. Another market, which is fast increasing its prominence is the high-end residential space for NRIs. Analysts report last quarter of 2012 itself saw an increase in demand by 20 percent to 30 percent. The biggest stabilizing factor for Pune’s reality is the absence of speculative market tactics and a good balance between demand and supply.
Trends suggest that Pune will continue to experience healthy consumer demand in the near future also. The local economy is thriving and so is the demand for retail and commercial properties. With IT/ITeS sector still witnessing an upward surge, Pune will continue to see the influx of more white collar professionals, which will again increase the demand of flats for rent in Pune, along with other residential properties. Another market, which is fast increasing its prominence is the high-end residential space for NRIs. Analysts report last quarter of 2012 itself saw an increase in demand by 20 percent to 30 percent. The biggest stabilizing factor for Pune’s reality is the absence of speculative market tactics and a good balance between demand and supply.
No comments:
Post a Comment