Pune Residential Prices Rose By About 8% In 2015
Relevant supply saw appreciation over market average; 4-6% price
rise expected in 2016
by Mr. Sanjay Bajaj, Managing Director – Pune, JLL India
In
2015, Pune beat the average capital value appreciation across key
Indian cities in the residential real estate asset class. While prices
in other cities rose by
2-6%, Pune’s residential market saw a price appreciation of
7.9% (y-o-y) last year.
The current year is likely to see prices rise by 4-6%, and stable
sales velocity. Given the positive investment scenario in India and
unabated demand for office space in the city, residential demand in Pune
has remained healthy over the last few years.
At a sub-market level, the
North-West market (Hinjewadi,
Marunje Road, Ravet,
Punevale, etc.) saw the highest price appreciation of
8.9%, followed by the North-East (Wagholi,
Keshnanad Road, Kharadi, etc.) at
8.6%. Appreciation in the
South-East market (Undri, Pisoli and
Kondhwa) stood at 7.9%, while in the
North (Moshi, Alandi Road, etc.) it was
8.4%. The
South-West (Bhugaon, Pirangut,
Gothawade, etc.) and Central sub-markets (Koregaon Park, Dole
Patil Road, Kalyani Nagar, etc.) saw a price appreciation of
7.6% and 6.4%, respectively.
Due to rising demand for homes by the employees of IT/ITeS, BFSI and manufacturing companies, most residential projects being launched in Pune are
concentrated in the North-West and North-East, including areas like
Hinjewadi, Balewadi, Hadapsar,
Kharadi, Wagholi and Nagar Road. The fringe areas of the South-East sub-market such as Undri and
Pisoli are also picking up fast and have seen a significant number of launches in the price bracket of Rs. 3,000 to 4,000/sq.ft. over the past few quarters.
The
prime reasons for the emergence of the South-East area are the
relatively lower price tags when compared to other competing areas, and
good connectivity to central areas
and established locations. The South-East market has projects by
reputed developers such as Godrej Properties,
Nyati Group, Mantra Properties, Marvel Realtors, Tata Housing,
Ekta World, Sobha Developers, Goel Ganga Developments, etc.
Market Dynamics
In
the last couple of quarters, peripheral locations have been the major
demand contributors for the city. Fringe pockets of Pune such as areas
along the Pune-Mumbai Expressway,
Bhugaon, Pirangut and Pisoli have enjoyed increasing interest from buyers recently, mainly due to the affordable price bracket of Rs. 3,000-5,500/sq.ft. Other locations targeting
affordable segment homes are Dhanori, Charoli, Moshi and Alandi Road.
Pune’s luxury homes segment has also been growing, with prominent players such as
Panchshil Realty, Kolte-Patil Developers Ltd,
Lunkad Realty, Marvel Realtors, ABIL, Rohan Builders and
Naiknavare Developers capitalizing on the demand in this
segment. However, a slight shift in the luxury homes development trend
is now visible, with many new players having ventured into the
affordable housing segment. Developers
such as Dreams Group, Vastushodh and Tata Housing have
launched quite a few affordable housing projects in the last few
quarters. This is obviously where the greatest demand lies.
Supply of affordable housing (Rs. 3,000-4,500/sq.ft.) and mid-segment housing (Rs. 4,500-5,500/sq.ft.)
has grown significantly
and added more than 15,000 units in 2015. This trend will continue,
with several more affordable and mid-segment projects likely to hit the
market in the peripheral areas. The response to newly-launched projects
is also good, which in turn is encouraging developers
to construct more projects.
Reputed
developers are definitely experiencing better sales than their less
prominent counterparts, and are continuing to launch new projects or
phases in existing projects.
Newer developers with less exposure have restricted their launches and
are offering heavy discounts to lure customers and reduce their
inventory. This was not the case during growth phase of 2011-2014, when
even the new entrants attracted robust demand for
their projects in the city.
Areas such as
Kharadi, Wakad, Undri,
Hinjewadi and Wagholi have witnessed a steady increase in the
number of customer enquiries, and will remain preferred destinations for
end-users in the future. In 2016, sentiment on the Pune residential
property market will remain positive and areas
that offer better affordability and returns on investment will pick up.
For media contact
Arun
Chitnis
Head
– Corporate Communications & Media Relations
JLL
India
Level
6, Amar Avinash Corporate Plaza
Bund
Garden Road,
Pune
411001.
Tel:
(020) 30930441 Fax: (020) 40196101
Mob:
+91 9657129999
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