Pune real estate market gets expensive

Recent reports have emerged that suggest that the Pune residential real estate property prices have become expensive. New projects in Pune command much higher price that what they used to a few quarters ago! If you are looking for a flat for sale in Pune, then you must make a decision faster as the property market is heading towards a boom.

A Jones Lang Lasalle (JLL) India Residential Realty report stated that, "Unlike in Delhi-NCR, where residential real estate prices saw a massive drop during the last two years, Pune has maintained its status as a safe property investment destination with just a marginal drop in investment returns - capital value appreciation."

Buyers prefer mid segment and affordable flats in Pune. These range between INR 4500 to 5000 per sq. ft. However a noted drop in sales was observed when the mid segment pricing in Pune went upto INR 6000 per sq. ft. This shows that buyers are hesitant to purchase as property prices have been going up in the recent past. Localities in the western corridor like Aundh, Balewadi and Hinjewadi especially saw a good increase in price of flat for sale in Pune.

Many experts believe that the situation has not become as worst as Delhi NCR. The buyers will still be able to negotiate their way to a reasonably good deal. However this will also depend on current inventory levels. Rising inventory levels will definitely be a cause for concern for many home buyers. Price across segments have seen an average 5% price rise for new projects in Pune.

Sanjay Dutt, executive managing director for South Asia at property consultant Cushman and Wakefield, said, "Although the percentage of people investing in Pune residential market is not as much as in Delhi or Mumbai, and there are more end-users here. Also, while there has been a drastic increase in prices in Pune since last 10 years, the increase has been marginal in the last one or two years."

Compared to other markets in the country the slowdown in Pune hasn’t been very much that would affect the market tremendously. Although tracking of sales for the next 10 months will determine how the market has been behaving and if a price correction is likely at this stage. The migration of a large population to Pune for reasons such as employment has been a contributing factor for the price rise. This has resulted in a growth in demand for residential real estate in Pune and its suburbs.

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