Realty Wrap 2016: Pune Successfully Weathered Downturn

Pune property market delivered a mixed performance as far as residential launches were concerned. Plans for an upcoming metro rail service, as well as the development of a new greenfield international airport at Purandar, were successfully approved by the government. The city witnessed sound price appreciation across the year. Viman Nagar emerged as a top performing locality with maximum sales of apartments.

In the year 2016, Pune real estate market did not see any tremendous change. However, it had its share of highs and lows. The city has been ranked under the government's smart city project and the stage has been set for the same.

• Significant price appreciation was a notable trend that was observed for this city.
• Plans for an upcoming metro rail service worth Rs 11,420 crore in the city are being implemented. The Union Cabinet recently gave its go-ahead for Phase 1.

PropGuide looks back at all that had happened in the city's real estate market, particularly the residential segment.

Major infrastructure plans conceptualised

The development of a new greenfield international airport, Chhatrapati Sambhajiraje Pune International Airport, at Purandar was proposed with a nod from the Airports Authority of India (AAI).

The Pune Municipal Corporation (PMC) collaborated with China's Jinhua city for undertaking projects pertaining to infrastructure, civic amenities and transportation.

Overview of residential project launches

On an average scale, it was Mumbai that outperformed cities in the West in terms of new launches. However, Pune led the show with an increase of 85 per cent in the new unit launches during March 2016 while it was 11 per cent in June. Pune accounted for 31 per cent of the total launches in the western belt in September 2016 whereas it was 19 per cent in July the same year. The growth trend continued in October with a steep rise of 50 per cent compared to the previous month.

The areas which saw maximum action

Viman Nagar was one area in Pune which remained in the spotlight for a long time. Huge sales of apartments in Pune had been recorded with a major contribution from this locality. Other localities which closely followed were Sus, Undri, Hinjewadi and Wagholi. Baner, Wakad and Chakan also witnessed active business activities. Sales growth of affordable homes was at its peak with 63 per cent in October and 72 per cent of total residential launches in November 2016.

Price trends

An average increase of prices by 18 per cent on year-on-year basis in Viman Nagar was observed. The annual price appreciation of two to three per cent was noticed across all localities.

Developers who made an impact

Some big names of the industry planned huge investments in the cultural capital of India. Kohinoor Group invested Rs 300 crore for developing two logistics parks in Chakan and Ranjangaon in Pune. Altico Capital invested Rs 300 crore in the mega-township project of KUL Ecoloch by Kumar Builders in Hinjewadi.