Is Pune real estate market witnessing price correction?
Pune : Pune real estate has grown to higher levels and the property prices have increased by many folds in almost all the parts of the city. Pune is an end user driven market with a constant increase in demand of the residential units. The suburbs like Hinjewadi, Kharadi, Hadapsar, Aundh and Wakad are very much under the spotlight due to the kind of employment they generate.
There are various reasons for the constant increase in the demand of residential and commercial units; Pune is one of the few cities in the country that has robust IT/ITeS industry along with a huge manufacturing and automobile industry growing in parallel. Also is a home for many educational institutes. The other major reason is the close proximity and connectivity to the financial capital, Mumbai. Pune Mumbai expressway has created some very interesting real estate trends.
Like any other real estate market, certain Pune micro markets are experiencing price correction/stabilization.
According to experts, there is a mismatch between budget of buyers and the price of new construction. Due to high price bracket, there are limited buyers for the property in popular localities of Pune west like Hinjewadi, Wakad, Nilak and Saudagar. The property price is almost 20% higher than the budget of the buyer, for instance the new 2 bhk launches are happening at a price of 65 – 70 lakh while the buyer’s budget is only 50- 60 lakh, same is the case with 1 bhk and 2 bhk. Due to the unwillingness of buyer to buy highly priced property, Hinjewadi has seen a dip of 5% in the property prices over a span of last two quarters.
Two localities of South Pune, Katraj and Ambegaon have seen a decline in property price. Ambegaon is a new real estate destination in South Pune, with the rapid development of Sinhagad Road the price in this area has appreciated around 20-25 % in the last two – three years. However, in the last quarter Ambegaon has witnessed a decrease of 13% and Katraj has seen a decrease of 8%.
While the major localities in east Pune, Koregaon Park, Kalyani Nagar, Sopan Baug, and Viman Nagar are witnessing a constant increase in price over the last one year, Wagholi has seen a dip of 11.4% in the last financial year. This is, majorly due to the oversupply of residential units. Nearly 20% of the new constructions in Pune are located in Wagholi and 50% of these have already been delivered and the rest will be ready for possession by the mid of 2013. Wagholi has inventory from all the renowned builders like Kolte Patil Group, Marvel Realtors, Pristine Properties and Sai Builders among others and the price ranges from Rs. 12-65 lakh.
According to experts, this is just a minor correction. The Pune real-estate market is majorly stable and is set to grow further in the times ahead.
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Today, India is supposed to be the most preferred destination when it comes to investment in property and real estate sector.
I agree with you that Pune Residential Properties market is majorly stable and is set to grow further in the times ahead.