Real Estate Growth Pune Witnessed In The Last 5 Years
Pune – the investor’s utopia. The developer’s paradise. The ultimate hotbed for investment. If the numbers of the past five years are anything to go by, Pune has been on top of the investment radar for both experienced as well as first time property buyers.
But, what are the reasons behind the growth?
The answer is pretty simple – affordable housing. Young IT professionals from across the country flocked to the city year after year, hoping to build a well-rounded life while making their dreams come true. This, in turn, increased the demand for retail and office spaces in the city, thus, crafting the perfect investment circle for both the developer as well as the buyer.
Pune’s growth as a smart city brought in several industries to set up base in the field of technology, automobile, manufacturing, education and services. A sudden price rise across all locations was the ultimate result of this development, wherein, homebuyers witnessed mind- boggling appreciation, some over 200% within a couple of years!
Areas like Kharadi, Baner, Dhanori and Wanowrie and Pimpri-Chinchwad are some of the many micro-markets that lacked enough infrastructure half a decade ago. However, today, all these locations enjoy a robust infrastructure, endless residential options, office spaces, and entertainment avenues. Needless to say, this drove up the real estate prices, thus, giving Pune a far edge as the investor’s top choice.
Demonetisation and the advent of RERA
In the past five years, a fleet of governmental rules and acts have hit the country. However, their positive impact on Pune, though may not be as high as was expected, was still worth mulling over.
The demand for RERA-compliant houses is quickly being fulfilled with enough supply in full swing. Whether it’s houses in the luxury or budget quotient, apartments or row houses, Pune has been able to sustain major governmental regulations – the demand is always met with supply.
Following are the highlights of Pune’s exponential growth in the real estate market in the past five years:
- Housing.com suggested that Pune’s residential market saw a year-on-year (YOY) appreciation in its property prices, to the tune of 7.9% in 2015. Property prices have further risen by 4%-6% in 2017.
- The average residential prices in the past five years have dwindled between INR 4,750-6,500.
- According to Global property consultancy Knight Frank, the office market of Pune witnessed the best absorption in last 5 years in 2015, with 5 mn sq ft being absorbed.
- Strong demand and tepid supply pushed office rental values to an all-time high to 56/sq ft/month.
- 2015 recorded office space absorption of 5.2 mn sq ft, which was 15% higher than 4.5 mn sq ft during 2014.
- The majority of new launches are focussed in peripheral areas such as Wagholi, Dhanori, Hinjewadi, Pisoli and Pirangut, amongst others.
With demand for all types of properties continuously having met at a steady pace, Pune’s real estate market looks extremely promising in the near future.