Investment in Pune property market remains rewarding
Dec 10, 2013
Source : The Times of India


PUNE: What makes Pune such an attractive property investment destination despite the fact that Mumbai, India’s legendary real estate market par excellence, is right next door? A few years ago, the reasons for this were not as obvious as they are today.

Despite their proximity to each other, Mumbai and Pune are two very different property markets. Mumbai’s space crunch has made residential property exorbitantly costly, driving more and more aspiring middle-income home buyers to the fringes.

Mumbai, also, continues to grapple with its notorious infrastructure deadlock. Prices in most areas of Mumbai have stagnated and there is considerable pressure from the market to bring them down. If Mumbai does see a correction in prices – which is very likely in the near future – its residential real estate market will pick up pace again.

On the other hand, Pune residential property market has maintained its momentum even in a challenging economic environment. Various research agencies have confirmed that Pune has remained one of the best-performing residential real estate markets over the past two years.

Residential sales have slowed down even in Pune. However, it is also a fact that they have remained healthy enough to sustain the viability of the city’s real estate market. This is why Pune developers continue to launch fresh residential projects in all budget categories – affordable housing, mid-income housing and even in the super-luxury category.

Thanks to the sustained viability of the Pune property market, it will not see a price correction. The excessive speculative investment activity which caused prices to rise faster than they should have in earlier years has now been curbed. Pune developers are now discouraging mass purchase of units by speculative investors so that the market retains its rationality.

The investors who remain are operating from sufficiently wide investment horizons. This means, they will hold on to their properties for at least 3-5 years before they put them on the resale market. In the interim, they are content to earn very satisfactory rental incomes from their properties. Property investment which is conducted in such a manner does not cause the wild price fluctuations and erratic supply patterns that speculative investment does.
Pune is a property investment market that provides options to a wide spectrum of investment budgets as the city has a steady supply of options in all price brackets.

Meanwhile, the city’s healthy rate of employment generation – especially from the IT/ITeS, manufacturing and automobile sectors – ensures demand and property purchasing ability.
Even in high-ticket luxury housing, the investment potential in Pune is high and rising. Similar to Mumbai, luxury housing in Pune has its own segment of wealthy buyers as well as its own upper-crust residential locations.

The future supply in these prime locations – which include Sahakarnagar, Prabhat Road, Boat Club Road, Kalyaninagar and Koregaon Park, is extremely restricted due to lack of land parcels. Prices in these elite neighbourhoods will continue to rise as the available stock is absorbed. This will ensure that investment in Pune luxury housing segment will continue to be attractive.

Latest Realty News

IT units to pay property tax at residential rate
Dec 10, 2013
PUNE: After chief minister Prithviraj Chavan gave assurance of giving rebate in the property tax for Information Technology (IT) units, the standing committee of Pune Municipal Corporation on Monday approved a proposal of charging property tax from upcoming IT industries at residential rates and not commercial rates.
Lodha takes big strides amid gloom
Dec 10, 2013
MUMBAI: Late last month, Mumbai-based Lodha Developers hit the headlines when it announced the acquisition of MacDonald House, an upscale property in one of the most sought-after localities in central London which is near the old US embassy, for close to Rs 3,000 crore (£299 million) from the Canadian government. The 0.67-acre property is located in the heart of the city and houses the Canadian High Commission. Once it is completed, the acquisition will make Lodha Developers the owner of one of
Flat buyers spared service tax on maintenance fee
Dec 10, 2013
MUMBAI: Home buyers have something to look forward to in an otherwise dull property market. The customs, excise and service tax appellate tribunal recently held that they will no longer have to pay service tax on the one-time maintenance charge (deposit) paid to builders at the time of booking a flat.
Investors of Hirco Plc raise questions against erstwhile bosses
Dec 10, 2013
MUMBAI: Investors of Hirco Plc, a company listed on London's Stock Exchange's sub-market AIM, are raising serious questions against the firm's erstwhile chairman Niranjan Hiranandani and then CEO Priya Hiranandani-Vandrevala.
When and how to buy your dream home
Dec 09, 2013
MUMBAI: Buyers are faced with several dilemmas when they purchase a house. Here are the answers to some of the key doubts:Real estate, though a mainstream investment and probably a part of every financial portfolio, is also unique. It is the single largest financial commitment that most people make in their lifetimes. Buying a property also involves a lot of subjectivity and is not just a factor of the property's price or the interest rate on the home loan. Here are some questions you are likely
Proximity to Lohegaon airport a virtue
Dec 08, 2013
PUNE: Charoli (or Charholi) is an emerging and promising location near Pune's Lohegaon airport, being developed in response to the increasing demand for affordable, yet strategically located, homes. Like many other previously undiscovered and now well-developed entrants on Pune's real estate map, Charoli was previously an agrarian locality which, by virtue of large tracts of available land, has now been identified as a logical area for development expansion. Charoli has some very significant loc
Commercial property: Opening up to retail investors
Dec 07, 2013
MUMBAI: Buying an office or retail space is a huge investment, which is why commercial realty has been traditionally seen as an asset class that only institutional investors or high net worth individuals could invest in. That, however, is changing. Many retail investors are now getting into the office real estate game.
Pune residential market – Win-win situation for buyers
Dec 07, 2013
PUNE: Pune plays a critical role in the real estate sector of Maharashtra and the country at large. It continues to witness good traction as the market is still relatively affordable with new launches helping maintain the momentum. The demand for residential projects has increased tremendously driven primarily by the end-user segment. Real estate developers see considerable growth opportunities in the residential segment as the annual requirement of houses in Pune is estimated to remain in the r
Home away from home near Mumbai
Dec 06, 2013
MUMBAI: Driving out of the city on a weekend to the beautiful landscape in the western ghats within a 200-kms distance from Mumbai is now seen more than a weekend getaway. Given the plethora of options in housing available in the scenic spots nestled in the hills, people increasingly prefer the option of driving to their second homes and relaxing over the weekend. With the Konkan coastline with its verdant landscape and lush greenery on one side and the Arabian Sea on the other, a second home in
Destination development: First mover advantage
Dec 06, 2013
PUNE: Beyond the oft-repeated developers’ rhetoric ‘location, location and location’ as the USP of the project, lies the fact that today’s prime location was once a deserted area that most developers were not ready to bet on with the kind of huge investment that realty projects demand. It has not just been the huge investment involved but the infrastructure, or rather lack of it, which often made them play safe. Though, in some of the cases, the government authorities took the initiative to prov

Latest Realty News Of State

Realty Talk's