PropTiger Q3 Report FY16: What Makes Pune A Real Estate Hotspot?
February 17, 2016 |
Shanu
With people from across the country investing in the city, real estate prices in Pune have seen an upward trend in the past few years. Information technology (IT) and automobile manufacturing industries units have further boosted the commercial and residential demand.
According to a PropTiger Information Services report, Realty Decoded– Q3 FY16, for the third quarter of the current financial year, Pune real estate has the highest liquidity among the nine key Indian cities surveyed in the study. It has the best mix of low inventory overhang, and low age of unsold units. The cities surveyed in the report include Ahmedabad, Bengaluru, Chennai, Gurgaon, Hyderabad, Kolkata, Noida, Mumbai and Pune.
Here are five reasons why Pune is an upcoming real estate market.
Major IT companies, both global and Indian, have offices in Pune. By creating enormous job opportunities for well-paid professionals, the city attracts huge residential and office space demand. Many investors, who earlier bought property near offices of IT firms or major IT hubs of Hinjewadi in the west and Hadapsar and Kharadi in the east, found the value of their property rising significantly. Pune is also one of India's largest startup hubs, and home to many engineering conglomerates.Known as the 'township city', Pune has many integrated townships situated near major IT hubs. Pune also houses many renowned schools and educational institutions.Pune is also close to India's financial capital, Mumbai, along with other key cities of Maharashtra. So, many Non-Resident Indians (NRIs) and High-Net-Worth Individuals (HNIs) buy property in Pune. Interestingly, NRIs who return to live in India, buy houses in Pune. There is also a plenty of foreign investment in Pune's special economic zones (SEZs) . The growing foreign and NRI investments in Pune has made it more appealing for real estate investors, especially in the luxury segment. Pune's luxury houses cater to both investors and end-users alike. In Q3 FY16, 83 per cent of the demand for residential real estate was from end users, while the remaining 17 per cent was from investors.Even though real estate prices in Pune have been appreciating, one may also find affordable houses and apartments in plenty. The city has properties that cater to people of all income groups. According to the report, 14 per cent of the apartments sold in the city are priced less than Rs 25 lakh, 46 per cent of the apartments are priced between Rs 25 and Rs 50 lakh, and 27 per cent are priced between Rs 50 and 75-lakh bracket. Eight per cent of the apartments here are priced between Rs 75 lakh and Rs 1 crore, while mere five per cent of the apartments are priced over Rs 1 crore. When compared to real estate in major Indian cities such as Delhi and Mumbai, property in Pune is much cheaper.Pune's benign climate is an important reason why the city initially attracted real estate developers, private firms and home buyers. As average temperature in Pune ranges between 20 and 28°C, it is easier for migrants to cope with, when compared to many major Indian cities. Pune's public transport network is also better than many other cities.Here are some detailed reports related to the key findings of the Q3 FY16 report:
PropTiger Q3 Report FY16: Real Estate Sector May Be On The Path Of Revival
PropTiger Q3 Report FY16: Positive Sentiment Sets In, End Users Show The Way
PropTiger Q3 Report FY16: Top 3 Cities That Performed Well On The Ground
PropTiger Q3 Report FY16: In The Lap Of Luxury, High-End Segment Looks Promising