Taking A Look At The Real Estate Market In Pune

The Indian real estate market has always been typically restricted to cities like Mumbai, Bangalore, Kolkata, Chennai, Delhi and Hyderabad when it comes to huge volumes of growth and high levels of customer demand. Many behemoths have been focusing on these priority markets only but there are some cities which have stormed ahead of the others to take pride of place in the industry lexicon. Pune is one such city which has witnessed fabulous development in the recent past and is now a city to reckon with in all departments. Needless to say, real estate development and improvements have been witnessed in Pune as well.

The residential property market in Pune has always had a particular tempo and momentum of its own. This has always been maintained in spite of economic fluctuations and challenges. Residential sales have steadily come down in Pune but they are still healthy enough to sustain the real estate industry in the city and keep real estate a viable sector. This is the reason for the continuous launch of newer projects by developers based in Pune. More and more mint fresh residential projects and properties are being unveiled by developers. According to the Gera Realty Report for Pune analyzed the period between July and December in 2013 and data from this period highlights the increase in supply of these projects.

Supply of these projects can be gauged by the launches of approximately 41, 600 units out of which approximately 19, 200 units were totally for new projects while the remainder pertained to additions to existing projects and properties. The higher employment opportunities in Pune have directly benefited the real estate market here. According to the director at Ajmera Realty, Dhaval Ajmera, each and every metropolitan city possesses its own unique features which distinguish it from the rest. Real estate development has now gone up to uncharted levels and offers immense scope for buyers to snap up any property in a well connected location and with an upcoming industrial development wave to come. According to Ajmera, this is suitable for investors as well as end users. Employment generation levels are strongly healthy in Pune and this is primarily ensured by the top notch automobile, manufacturing, information technology and other sectors in the city.

Pune has witnessed a rare parity between the levels of demand and purchasing prices. According to the CMD at Amit Enterprises Housing, Kishor Pate, the Pune property market will always possess a sustained viability of its own and there will be no corrections in prices as a result. Speculative investment activity had earlier sparked the sudden rise of prices at a rate which was often deemed unpalatable. This has been combated in recent times and real estate companies and developers in Pune do not encourage mass sales of residential units to these speculative investors. Wide investment horizons are only encouraged in the market. Alongside, these investors usually retain their properties for a minimum period of three years or five years before putting up them up for resale once again.

In between, they earn decent incomes via rentals from these properties. The investments are conducted in such a manner so as to ensure the absence of any fluctuations in prices like the past along with stopping erratic patterns of supply.

According to the managing director at Gera Developments, Rohit Gera, the average market prices have gone up to an average of INR 4804 per square foot from the earlier average of INR 4464 per square foot in only six months while the average prices were about INR 4211 per square foot almost a year back. This is quite decent and places no huge burden on prospective buyers. Mumbai and Pune, despite being close to each other, are different markets. Mumbai always witnesses a situation where space crunches and low availability of ample land makes residential real estate more and more costly and mid range buyers of homes are forced to relocate to the fringes of the city.

Alongside, infrastructural deadlocks continue to plague Mumbai with rampant price stagnations witnessed n most areas. Market pressure is also pushing for corrections. Pune is different according to market experts who feel that the growing real estate market in Pune will be fueled by the influx of more people, companies and employment opportunities. Values of real estate will be increasing steadily here according to experts and proposed infrastructural projects will further this trend. This city is an attractive option for most investors as the real estate market is not in a process of saturation like Mumbai, Delhi and other cities.

According to the managing director at Pride Group, Arvind Jain, the city still remains a very attractive destination for investors. Alongside, emerging locations are showing greater promise with regard to growth and value increases. Upcoming locations in the city are witnessing greater price appreciation owing to enhanced viability in the market and better connectivity options coupled with social and civic infrastructural amenities. The population of the city is one the upswing and people are moving to areas that are affordable and easy on the pocket. According to Pharande Spaces chairman, Anil Pharande, Pune offers solid investment dynamics for investors who should be focused on aspects like supply and demand of a particular location, growth of population and infrastructural improvements.

All in all, Pune is a viable proposition for real estate investments indeed. Look at an area like Aundh in the year 2011. Prices of property would have been in the range of INR 60 lakhs on an average for a decent residential apartment. However, as per market reports and studies, the same prices will surely be in the range of INR 80 lakhs in present times if not more! Values of property have increased by a decent thirty percent in areas like these as per market experts. Capital values for apartment towers in the area currently stand at approximately INR 7, 400 to INR 9, 300 per square foot and even more depending on the project. Snap up a good property in Pune now and reap the returns!