By Accommodation Times News Service
Though the real estate market is running sluggish since few years Pune’s real estate market is stable and doing well compared to its adjoining city Mumbai. The housing demand in the city is increasing from IT professionals, the growing IT companies is key to the growth of real estate in the city. Also, now as Pune is included among 20 smart cities, this as boost the city’s image and this has gained a positive impact on the realty market in both residential and commercial sectors.
Pune being adjoining city of India’s financial capital Mumbai is high on demand for people who could not afford home in Mumbai or want to be away from Mumbai’s hustle-bustle life, but want to live in a metropolitan city, such people prefer to buy home in Pune.
The high demand for homes by IT professionals, BFSI and manufacturing companies, most residential projects being launched in Pune includes areas like Hinjewadi, Balewadi, Hadapsar, Kharadi, Wagholi and Nagar Road i.e. North-West and North-East of the city. 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 South-East area of Pune is also developing as the location has good connectivity to central areas and established locations and prices here are comparatively low. Hence, many big brands are coming up with residential development in South-East like Tata Housing, Goel Ganga Developments, Godrej Properties, Nyati Group, Mantra Properties, Marvel Realtors, Ekta World, Sobha Developers, etc.
One of the Pune’s leading developer Mr. Rohit Gera, Managing Director of, Gera Developers, commented on the Pune’s growing real estate market, he said, “ Certain sectors within Pune Real Estate market are finding good sales momentum. The segment with prices under 4200 rupees per square foot is the lowest inventory overhang in spite of having the maximum inventory in this segment. Sales are slow at the higher end of the market however reputed developers with a track record even in the higher price bracket are seeing some sales momentum.”
Another developer from Pune Arvind Jain, Managing Director – Pride Group, says, “Pune’s real estate market has been performing very well over the last three years. Along with Bangalore, it was one of the few cities that were not seriously impacted even during the slowdown. Now, as most markets are back in recovery mode, Pune has come forth in strength as an important investment destination. Commercial real estate absorption has increased, led by the IT/ITeS, BFSI and manufacturing sectors. Residential properties in moderately-priced locations are in big demand and even luxury projects have been doing well, thanks to a lot of interest from HNIs within as well as beyond Pune.”
The growing housing demand in Pune is attracting large investment in city and many new projects are launching. Prominent developers are happy with the city’s growth and experiencing better sales, hence they and are continuing to launch new projects or phases in existing projects. Many financial institutes are funding new projects in the city, as they can sense good returns over the time.
Mr. Anil Pharande, Chairman, Pharande Spaces, says, “Thanks to the economic activity in this part of Western Pune, the real estate market there is delivering the highest returns on investment. At the same time, realistic property prices are attracting countless end users to this region.”
Recently, non-banking finance company Altico Capital has invested Rs 180 crore in two projects of Pune-based real estate developer Pharande Group. The funds will be used by the developer for refinancing an existing lender and for construction of the projects.
Mr. Sanjay Grewal, CEO, Altico Capital, says that “The locations of the respective projects, the product offering and current stage of development were key reasons for Altico’s interest in the projects. Pune is a key market for us, earlier in the quarter we had completed a Rs 240 crore transaction with the Marvel Group. Now, in addition to the Pharande transaction we plan to deploy an incremental Rs. 400-500 crore in the next couple of months with developers focused on delivering mid-income and affordable residential projects.”
Many start-up real estate companies or reputed companies who want to venture into real estate are choosing Pune as the city to launch their first project. Belmac, the real estate arm of Supreme Holdings and Hospitality (India) Ltd., recently, launched its first premium residential project, Belmac Residences in Pune, located at Wadgaon Sheri.
Speaking at the launch, Mr. Prateek Jatia, Executive Director, Belmac said, “We at Belmac are excited to launch our first project in Pune. We believe that Pune market has a great potential and is one of the most important real estate market. We look forward to building our presence here. The launch of Belmac Residences is in line with our strategy of establishing a strong footprint in large developing markets across the country.”