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The Pune Real Estate industry continues to thrive in Q1 FY 20 on the back of notable growth in transaction volumes. The frequency of property transactions have grown by 40% on a Q/Q basis reaching slightly less than 16,000 units.
The prevailing positivity in the Pune market is also rooted in its inherent resilience. An interesting aspect that should be noted is that even when the overall market was facing a downtrend with major markets facing a dip in sentiments, Pune mostly remained unperturbed.
In addition to the intrinsic resilience of the city, Pune’s upbeat Real Estate sentiments originate from its relatively affordable property prices, flourishing IT & automobile industry, well-developed social amenities (retail, education & healthcare facilities) & quality physical infrastructure (roadways, water supply, etc.). Further contributing to the popularity of Pune is its high livability index which is borne out by the fact that it has also bagged the top spot in the Ease of Living List amongst 111 other Indian cities in 2018. The exhaustive ranking procedure which has been conceived by the Ministry of Housing & Urban Affairs ranks cities based on crucial parameters such as employment opportunities, social infrastructure, physical infrastructure, etc.
In the current scenario, affordable properties ranged from 20-40 lacs form a relatively large portion of the market demand which is followed by the 40-60 lacs segment. The demand for higher priced projects (> 1 crore & above) is relatively cooler as most of the homebuyers primarily fall within the middle-income group & are largely employed in the IT/ ITeS & manufacturing sectors.
The property market in Pune is also drawing strength from near-stable house prices. Average property prices have inched up by 0.3% Q/Q, reaching INR 5250/sq. ft. As prices are attractive, buyers are pivoting in big numbers towards the market. As Due to being marked by healthy sentiments, major developers such as VTP, Godrej, Rohan, Shapoorji Pallonji, Puranik, Kolte Patil, Puranik are coming up with new launches, primarily in the western parts of the city.
Apart from end use, investment is also witnessing a steady upward movement due to the sustained lucrative prices that are currently prevailing in the city. In comparison to other cities, Pune is defined by a strong proportionality between end users and investors which is exhibited by the fact that investors occupy around a fifth of the market activity.
These factors contribute to the reasons why the Pune real estate market has made its mark as a viable and renowned location that hold tremendous potential. For those exploring real assets that can give high ROI, the prospects in Pune are promising and it is a market that is worth considering.
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