NHB Residex Confirms Pune As India’s Best Real Estate Investment Destination

Accommodation Times News Services

By Arvind Jain, Pride Group

Arvind JainThe National Housing Bank’s Residex recently confirmed that up to March 2015, price appreciation for residential properties continued to be the highest in Pune among the 16 cities its monitors. In fact, all other large cities have been showing a decline in property valuations. The NHB mentioned Pune’s inventory of unsold residential stock as 13 months’ worth, which is very low when compared to other cities. This is because consumption of residential real estate in Pune continued to be healthy even during the lowest point of the national real estate slowdown.

There can be many reasons for unsold inventory – muted market sentiment, a lot of supply being in the early stages of construction, housing projects being constructed in the wrong locations, and over-pricing. In Pune, some supply is undoubtedly in locations which have not picked up because of lack of infrastructure, and there are also quite a few projects where developers have been too adventurous in their pricing. The fact that Pune continues to perform better than other cities on appreciation indicates that most investors have navigated away from the non-lucrative propositions.

In any case, Pune’s outstanding performance does not come as a surprise, and it vouchsafes the unwavering confidence that end users and investors have been exhibiting in Maharashtra’s most dynamic economic powerhouse. The trend of Pune’s real estate market performing against the larger odds and out-distancing other cities in terms of real estate vibrancy will definitely continue.

With the combined effect of manufacturing, Information Technology, the services sector and hospitality providing impetus to Pune, the city has all the right economic and demand drivers firmly in place. Moreover, its inclusion in the 100 Smart Cities program has served to boost the interest from multinational companies to set up and expand operations here. This will serve to further increase inward migration and fuel greater demand for residential real estate, and provide end-users and investors alike an outstanding rationale to place their faith in this market.

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