Pune's Residential Property Market Sees Significant Growth
Price Appreciation Across Pune
In 2016, Pune's residential property market witnessed a notable price increase of 4-6%. This growth can be attributed to the consistent demand for residential properties in the city over the last few years. Investing in Pune's residential market is likely to yield substantial returns, given the current upward trend.
Historical Context: Pune Outperforms Other Cities
In 2015, Pune surpassed other key Indian cities in terms of average capital value growth in the residential real estate sector, with a year-over-year price appreciation of 7.9%. In contrast, other cities saw a more modest growth rate of 2-6%.
Area-Wise Price Appreciation
- North-West Area: Hinjewadi, Marunje Road, Ravet, Punevale, etc., witnessed the highest price appreciation at 8.9%.
- North-East Area: Wagholi, Keshnanad Road, Kharadi, etc., saw a price appreciation of 8.6%.
- South-East Area: Undri, Pisoli, and Kondhwa recognized a price appreciation of 7.9%.
- North Area: Moshi, Alandi Road, etc., stood at 8.4%.
- South-West Area: Bhugaon, Pirangut, Gothawade, with a price appreciation of 7.6%.
- Central Sub-markets: Koregaon Park, DolePatil Road, Kalyani Nagar, etc., saw a price appreciation of 6.4%.
Drivers of Growth: IT, BFSI, and Manufacturing Sectors
Pune's status as a hub for IT/ITeS, BFSI, and manufacturing companies has led to an influx of population, thereby fueling the demand for residential projects. Developers have predominantly launched projects in the North-West and North-East areas, with the border areas of the South-East sub-market also witnessing a significant number of launches, primarily in the price bracket of Rs. 3,000 to 4,000/square feet.
Luxury and Affordable Housing Trends
Pune's luxury homes segment has seen growth, with established players like Panchshil Realty, Kolte-Patil Developers Ltd, and others capitalizing on the demand. However, there is a noticeable shift towards the affordable housing segment, with developers like Dreams Group, Vastushodh, and Tata Housing launching several projects in this category. The greatest demand indeed lies in affordable housing, with prices ranging from Rs. 3,000-4,500/square feet, and mid-segment housing (Rs. 4,500-5,500/square feet) growing significantly, adding over 15,000 units in 2015. This trend is expected to continue, with more affordable and mid-segment projects anticipated to enter the market.