The demand from both end user and investors precisely in the mid-range segment kept the overall Pune residential market positive during the quarter ended June, showed a report by property consultancy Colliers International.
Majority of the demand was observed in projects located in micro markets such as Wagholi, Kharadi, Undri, Pisoli, Hinjewadi, Baner and Bavdhan.
Capital values for residential properties across Pune have seen an average appreciation of 2% over the previous quarter. However, rents remained stable across all the micro-markets due to continuous addition of new units.
The capital values of newly completed projects in secondary market were ranging between Rs 6,000 - Rs 7,000 per sq ft for premium projects and Rs 3,000 - Rs 5,000 per sq ft for mid segment projects.
There were number of new launches in the first quarter of 2015 catering both premium and mid segment. The city witnessed various project completion this quarter in ocations like Baner, Balewadi, Kondhwa, Hadapsar, Undri, NIBM, Ambegaon, Wanowrie, Wakad, Pimple Nilakh, Pimple Saudagar, Pisoli and Katraj.
"The city residential market will continue to gain momentum. Micro-markets located in South East, North West and South West zones of Pune will remain active in terms of project completion and new launches. Overall, capital and rental values are expected increase in medium term. However, select micro-markets located in Central and North East will will see a stable scenario," said the report.
Asking prices for premium properties in Pimpri Chinchwad, Chakan, Kondhwa and Undri rose the highest 11-17% from a year ago, while Kothrud, Bavdhan, Deccan and Boat Club saw prices moving 4-6% higher.
During the quarter, Xander Advisors India invested around Rs 280 crore in Kumar Urban Development's residential proposed project at Karve Road in central Pune. In an another transaction, ASK Property Investment Advisors exited from investment in two residential projects in Pune namely "Serano" by Amit Enterprises at Baner and "Skyone by "Paranjape Scheme's at Model Colony.