Pune continues to be an interesting real estate market in India despite the slowdown in house sales and new launches. Research shows that Pune has continued to remain in second position as far as property occupancies and sales go, while many of the bigger markets such as Delhi’s National Capital Region and Mumbai have slipped in the ratings.
Many of the localities, including Keshav Nagar in Pune, have gained popularity with the new class of buyers who are more discerning and want more for every rupee they spent. This is the mid-income buyer who is most probably buying the apartment for his own use and, more often than not, with the help of a bank loan. One of the many pluses in favour of a home in Keshav Nagar has been that it is convenient for people working in Information Technology (IT) companies.
One of the main reasons Keshav Nagar has gained in popularity with the mid-income buyer is that it is close to Koregaon Park. To the west of Keshav Nagar is Ghorpadi and to the east is Manjiri. The airport is easily accessible while the railway station is just nine kilometres away. In addition to that, the locality is also close to Pune Camp. Keshav Nagar is close to the Amanora Town Centre on the Hadapsar-Kharadi Bypass, Phoenix Market City and InOrbit on Nagar Road.
The property prices for multi storied apartments in Keshav Nagar falls anywhere between INR 5200 to 5700 psqft. On the most recent count, the number of unsold apartments in Pune was valued at a whopping Rs 48, 600 crore. Strangely enough the prices have not dipped but have remained flat. Experts say that this is the right time for those who wish to invest in an apartment in Pune to do so.
Many people are waiting for the prices to drop substantially before investing in a house. However, experts say that this is unlikely to happen as there are many reasons why builders are holding the prices. The first being that the input cost including labour has gone up drastically. Cost of capital has also increased over the years.
Pune continues to achieve house sales despite the overall slowdown mainly because the economic drivers are strong. Pune is a well established hub for IT as well as a major manufacturing centre for the automobile sector. These two verticals have been going strong; which means that more and more young professionals will be coming to Pune for jobs. This also means that there is a continuous demand for homes especially near the IT parks and the industrial estates.
Beside the growing numbers of white collared workers who have been coming into Pune to work in IT and automobile industries, there is another large segment of people who are into whole sale and retail commerce and trade. Pune is the centre for the marketing of food grains and other commodities. Agricultural products such as wheat, rice, pulses, oilseeds, maize and green peas, which are cultivated in the rural areas around the city, are brought into the city for marketing. Pune is also a hub for agricultural tools and implements as well as fertilizers, pharmaceuticals, iron and steel, cement and minerals, petroleum products, readymade garments and timber.
The city has two growth corridors on the eastern and western side. On the western side the growth is towards the Hinjewadi IT Park and the industrial belt which consists of Talegaon and Chakan. The western corridor has easy access to the Mumbai-Pune Expressway. The eastern corridor has good connectivity to other parts of Pune, the airport and the railway station. Many companies have set up base at Kharadi, Hadapsar, Nagar Road as well as Airport Road. There is more demand for housing on the eastern side mainly because of the good social infrastructure in this area.
Basically Pune’s fundamentals are strong; that means that the city has a strong social network of educational institutions, hospitals and retail outlets.
Nina Varghese for IndiaProperty.com
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