The shift in Pune realty market is significantly visible with many new players preferring affordable housing segment to venture. Established developers also showed their inclination towards affordable realty. Investors too, prefer properties which can easily be liquidated
Once labeled as an ideal luxury realty destination, Pune has now found a way to defy slowdown prevailing in the realty market. The city is now emerging as an affordable realty market. Fringe areas of South-East Pune like Bhugaon, Pirangut, Gothawade, Undri and Pisoli are slowly becoming an obvious choice for top rated developers who are now launching projects under affordable realty.
As per Sanjay Bajaj, Managing Director – Pune, JLL India, “The prime reasons for the emergence of the Southeast area are the relatively lower price tags when compared to other competing areas, and good connectivity to central areas and established locations. The Southeast 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.”
The market for affordable housing was always there, though it lacked momentum. Pune’s proximity to Mumbai Metropolitan Area gave it an advantage. Further with its natural landscaping, it became one of the sought after luxury realty destinations. Moreover, with commencement of Mumbai-Pune Expressway, Pune’s luxury realty market soared to new heights. Though the recent slowdown in property market put a halt to luxury realty’s rally and made the developers redesign their product and marketing strategies.
The recent research report by JLL India suggests that 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.
Though the research suggests prices in Pune have appreciated by 7.9% in the year 2015 as compared to the previous period, the surge in demand for affordable housing projects suggests that buyers are now more interested in properties which can easily be liquidated. In a sluggish market, it is hard to resale a luxury property. Along with the end users who primarily constitute the migratory population, investors also consider Pune’s affordable realty market as a safe gamble.
The research indicates that supply of affordable housing primarily in the range of Rs. 3,000-4,500/sq.ft. and mid-segment housing with Rs. 4,500-5,500/sq.ft. range has grown significantly and added more than 15,000 units in 2015. This trend is expected to continue, with several more affordable and mid-segment projects likely to hit the market in these peripheral areas. The response to newly-launched projects also remained good and has encouraged developers to construct more such projects.
Luxury realty market in and around Pune has also grown and has registered some surge in demand. Some of the prominent players launched their projects to capitalize that demand in this segment. However, the shift in the market is significantly visible with many new players preferring affordable housing segment to venture. Established developers also showed their inclination towards affordable realty. Developers such as Dreams Group, Vastushodh and Tata Housing launched affordable housing projects in the last few quarters.
RealtyMyths, in its Digital Search Trends Research, conducted earlier this year showed Pune as one of the prominent gainers in affordable housing search. In Maharashtra market, it accounted for almost 20% of entire affordable housing searches happening online. Realtymyths, in its Digital Research Report also predicted that the trend would continue throughout the year 2016 making it one of the most sought after affordable housing destinations in Maharashtra.