Pune : Residential Property Market is Up

Mr.Sanjay Bajaj

Pune : Residential Property 
            Market is Up

- -Mr.Sanjay Bajaj, Managing Director – Pune, Jones Lang LaSalle India


The primary catalyst for Pune’s residential real estate market are the IT and ITeS (Information Technology and Information Technology-Enabled Services) sectors. The central parts of the Pune have more or less used up their development potential, and it is now in Pune’s secondary and suburban markets where the highest growth potential for residential property lies.

The demand for houses does not come from the IT/ITeS sector alone. Pune’s manufacturing sector, which features a number of international names, also drives residential demand. This fact has always given Pune’s residential property market an edge over cities which have less diversified demand.

This is also explains why Pune continues to figure among the most prime cities for residential investment in India. Though the growth of property values cannot be compared to that of neighbouring Mumbai, Pune has the advantages of being a stable market with consistent demand coming from a number of strong and dependable business sectors.

Because of the increasing demand for houses by IT / ITeS and industrial employees, most of the residential projects being launched in Pune are concentrated on the north-western and south-eastern side. Encompassed in these regions are areas like Baner, Aundh, Balewadi, Hadapsar, Kharadi and Nagar Road.

Capital values on the Pune residential market appreciated by about 5 % since the beginning of 2011, and are expected to appreciate by another 4% by the end of the year. This would apply to all of the above-mentioned locations. Growth of rental values is likely to overtake that of capital values. The reason is that a not insignificant share of demand for homes in Pune comes from migratory IT/ITeS and manufacturing sector employees.




Moreover, the steady increase in property prices as well as the relentless rise in home loan interest has had an impact on the market. Outright purchase currently seems less attractive to many of Pune’s citizens as well as to those from cities other than Mumbai who seek to settle there permanently. Going in for a residential property in a strategic location with the purpose of renting it out is therefore an excellent investment proposition. The ideal configurations are 1, 2 and 2.5 B H Ks, since these are in highest demand at the moment.

The Pune residential market can look forward to healthier growth in the future. The city’s road network, which was increasing being challenged, is being enhanced with the addition of more access roads where they are needed the most. Also, a number of malls are being launched in the eastern and the western parts of Pune, which will further enhance demand for homes there.

Residential Prices In Key Locations

Area           Price  (Rs/Sq.Ft):

Camp                 5000-7000

Aundh               5000-6000

Baner                4500-5200

Wakad              3000-4000

Hinjewadi         3500-4500

Kothrud              5000-6500

Katraj                   3500-4500

Hadapsar              3000-4000

Kalyani Nagar       6500-8500

Kharadi                   3500-4500

Kondhwa                  3200-4000

Viman Nagar           5200-6500

Wagholi                    2600-3000

Undri                         3000-3800

Pimple Saudagar     3500-4500

Pimpri-Chinchwad    3000-4000

Source:   Jones Lang LaSalle India

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