Unsold Properties in Pune: A Buyer's Market?
With a surplus of unsold properties in Pune, homebuyers are finding themselves in a strong position to negotiate better deals. This period of stable property prices offers a unique opportunity for those looking to enter the Pune real estate market.
The abundance of unsold properties in Pune has become a hot topic amongst homebuyers. Recent weeks have seen stable property prices, creating an advantageous situation for potential buyers who now have a wider selection of properties to consider. This buyer's market empowers them to negotiate lower prices with builders, potentially securing more favorable deals.
A report from global property consultant Cushman & Wakefield reveals a significant drop in new home launches during the last quarter of 2012. Despite a surge in launches during the first three quarters, the final quarter experienced a dramatic 60% decline. Cushman & Wakefield attributes this slowdown to the high volume of existing unsold inventory.
Cushman & Wakefield noted that this was primarily due to the prevailing number of unsold properties. Supporting this observation, Mr. Gaurav Jain of Pune-based Purple Realtors points out a distinct mismatch between the pricing of new constructions and the budgets of prospective buyers.
Analyzing trends in popular West Pune residential areas like Hinjewadi, Wakad, Nilakh, and Saudagar, Mr. Jain observes a scarcity of buyers. Newly launched 2BHK apartments are priced between Rs.65 lakh and Rs.70 lakh, exceeding the typical buyer's budget of around Rs.50 lakh.
This price discrepancy is also evident in the 1BHK segment. New launches are priced between Rs.30 lakh and Rs.35 lakh, while buyers are typically looking to spend between Rs.20 lakh and Rs.25 lakh. Interestingly, the high-end segment, with properties priced above Rs.80 lakh, remains unaffected. Mr. Jain notes that buyers in this segment are less price-sensitive.
Contrasting this perspective, Mr. Sanjay Bajaj, MD of Jones Lang LaSalle Pune, maintains a positive outlook on the demand for properties in Pune. He anticipates continued positive demand and believes that construction activity is progressing as expected.
This divergence of opinions underscores the dynamic nature of the Pune real estate market, providing both challenges and opportunities for buyers and developers alike.