Real Estate In Pune Is Unlikely To Get Cheaper

A Recent report suggests that residential property prices in Pune are unlikely to see any significant correction in the next few years. This may come as disappointment to those planning to invest in Pune.

The report states, "Unlike, in Delhi-NCR region, where real estate prices saw a massive drop during the last two years, Pune maintained its status as a safe property investment destination. Pune saw a marginal decline in investment returns - capital value appreciation."

The 'sweet spot' for buyers lies between Rs 4,500 and Rs 5,200 per square feet. The report added that while there has been an increased interest in the properties on the western corridor, including Aundh, Balewadi, Bavdhan, Baner and Hinjewadi, the sales went down.

Sanjay Bajaj, managing director, Pune, said those waiting for the prices to go down are waiting in vain.

"However, they would be able to negotiate the prices in the current scenario. Depending on the inventory levels with the developer and the location of a project one can negotiate the prices," he said.

Another report by Knight Frank Research on India Real Estate in 2014 stated that a few number of new projects helped the city avert any depreciation in prices which, on the contrary, rose by 5% across the city.

The slowdown rate in Pune has been lesser as compared to other cities. It is still considered one of the best markets to invest in. No increase or decrease is expected in the next year, although an improvement in sales is expected.

Experts have attributed the rise in prices to the continuous migration of people from other states to the city. "Being an industrial hub, a lot of people come here for better career opportunities. This migratory population could be attributed to the rise in demand which eventually pushes up the realty prices here," they added.

 Pune has more end users unlike in Delhi or Mumbai. Although there are fewer people, who like to invest Property in Pune as compared to Delhi and Mumbai. The city has seen drastic increase in prices in Pune since last ten years, but the increase has been marginal in the last one or two years.

Developers have launched new schemes to enhance sales. This requires the customer to pay up to 30% of the total amount while booking and the rest after possession. Earlier these schemes were not present in the city.

Maximum appreciation is expected in areas like Hinjewadi, Kharadi and nearby region because of its location. These places are close to employment opportunities says JLL report.

Although the city continues to see growth in capital value appreciation. But the rate of appreciation has declined marginally over the last two years. This trend was seen in most areas in Pune.Only a few parts of Hinjewadi, which saw new launches, and affirmed growth in appreciation.

A downward trend was observed in India last year. It was seen regarding both rates and launches of new projects. However, now things are looking up with rates increasing by 5-6%. If you want to invest anywhere in the country then you must invest in Pune because properties in Pune will see rise in prices soon.