Market for Residential Projects in Pune - An Overview

As per real estate reports, 2013 was not a very good year for the residential property market in India. Markets in cities like Bangalore, Delhi and Chennai witnessed a downward trend due to factors like economic slowdown and political uncertainties. Due to high home loan interest rates and skyrocketing realty rates, many buyers had to wait for buying properties.

Pune’s Realty Market is Thriving

Irrespective of this downward trend, market for residential projects in Pune showed no signs of slowdown. Compared to other property markets in the country, real estate companies rejoiced the steady momentum that Pune’s market offered.

With the arrival of Narendra Modi’s government, India’s economic scenario has changed for good. It has stabilized the stock market to a great extent, helping the growth of real estate development in the country. In such a positive political scenario, Pune’s market continues to show signs of growth in different asset segments.

What is causing the Rise in Demand?

Pune is a growing IT hub and also a manufacturing base for the auto industry. City’s real estate market has also benefitted from the growth in these sectors. Especially the eastern and western side of Pune has witnessed tremendous growth in residential projects.

Realty rates in the city have increased by approximately 35% since 2011. Average home rates have gone up from 3800 rupees per square ft. to 5100 rupees per square ft. Compared to Mumbai and National Capital Region, Pune’s market continues to perform really well. According to Liases Foras, even though the city registered a decline of 19% in property sales at the start of 2013, it was still less than sharp decline of 23% in cities like Bangalore.

Multi-storey apartments have become quite popular due to the concentration of population in manufacturing and IT industry. A number of residential projects are coming up in areas like Wagholi, Pimple Nilakh, Wakad, Pimple Saudagar and Kharadi. These areas have become popular with real estate companies due to good connectivity with city’s hotspots. Even infrastructure such as hospitals, malls, schools and entertainment centers is available in these locations.

If you are thinking of buying a property in Wagholi you will have to spend around 3500-4500 rupees per square ft. For a property in Wakad, the rate is 5500 to 6500 rupees per sq.ft., Pimple Saudagar 5500 to 6500 and Kharadi 5500 to 6000.

In the coming years, these areas will witness tremendous growth in terms of properties. Even the luxury property market in the city is booming. A lot of national as well as international real estate development companies are entering this market. From plush 4-5BHK flats to stylish penthouses and villas, luxury realty buyers in Pune are being offered various choices.

Many developers are offering luxurious yet affordable housing options to the buyers. Majority of these projects are located on the outskirts of Pune city. Luxury housing market is thriving but buyers are also finding budget housing options more attractive from the investment point of view.

Shruti Decosta is a real estate blogger who loves to write about upcoming residential projects in Mumbai, Pune, Nashik.