Pune, a significant metropolitan area in Maharashtra and the eighth largest city nationwide, has recently experienced a substantial surge in property values. Property rates have escalated by almost 40% since 2011, with average prices in the city climbing from ₹4,000 to ₹5,300 per square foot. The real estate market is dynamic and changes frequently.
Market Slowdown
Sales activity has begun to decelerate, registering a 21% decline at the beginning of 2013, as indicated by a recent survey. In contrast, Bangalore, a considerably larger property market, witnessed a more pronounced decrease of 25%. Declining affordability is a huge problem.
Pune's Affordability Advantage
Pune has performed considerably better than other markets, like Mumbai and the National Capital Region. A major contributing factor to Pune's resilience during this festive period is its comparatively greater affordability compared to other major cities.
Price Stabilization and Market Performance
Currently, prices have achieved stability at these levels. While Pune demonstrates stronger performance relative to cities such as Mumbai and the National Capital Region, it would be inaccurate to assert its complete immunity from the broader real estate downturn affecting other regions of the nation. Home buyers are cautious about entering the market.
Growth Strips
The growth strips are positioned on the eastern and western peripheries of the metropolitan expanse. Pune is one of Maharashtra's most developed regions.
Inventory and Supply
Total unsold inventory levels in Pune were concerning, but the substantial supply introduced by developers over the previous six to nine months helped ease the problem. The home-buying segment sustained its purchasing momentum.