[ecis2016.org] The property market in Pune has performed well, especially due to the rental income properties in the city, have enjoyed
In the real estate market, a higher average rental in a location normally indicates high demand and low supply of properties in that location. Pune’s property market has shown consistent growth in rental yields. According to Shailesh Puranik, MD of Puranik Builders Pvt Ltd, Pune is an attractive destination for home buyers. It is a historically important city and it has witnessed growth in almost all spheres. Consequently, rentals in the city have increased considerably over time, he adds.
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“Pune has the highest number of software companies (212), followed by Bangalore (208) and Hyderabad (97). Pune is ranked number one in terms of education, with the highest number of colleges (35). Pune University has 57 engineering colleges affiliated to it, which is the highest in the world,” Puranik elaborates. The city accounts for the highest number of professionals in the US and almost 60% of the Indian population abroad, can trace their roots to the city (except the Gulf). All these factors make Pune a favourite destination, in terms of real estate growth, he maintains.
Key locations, from the rental perspective
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According to Colliers International’s Residential Property Research and Forecast Report for Q3 2015, “Micro-markets located in the south east, north west and south west zones of Pune, will remain active in terms of project completion and new launches. With growing residential activity, a number of developers are also looking for retail expansion in the eastern and the western parts of Pune; this will further increase residential demand in these areas. A fair amount of upcoming supply will keep the capital values and rents controlled in most of the areas.”
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Presently, rentals for 1-BHK properties, hover in the range of Rs 9,000 to Rs 15,000, while 2-BHK apartments command rentals of Rs 15,000 and above, points out Puranik. “The expected growth in rentals is pegged at around 15% to 20% year-on-year, which makes it very attractive for investors,” he explains.
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Experts suggest that the Hinjewadi IT Park and Balewadi Sports Complex are the prime drivers of housing demand in the city and its surrounding areas, from the rental perspective. Balewadi is located approximately 20 kilometres from the airport and 10 kilometres from the railway station. After Aundh, Balewadi and Baner, Bavdhan is the next choice for home buyers. Pune is known as Maharashtra’s ‘Silicon City’, as it has the highest number of IT companies in Hinjewadi’s IT hub. The high demand for properties in these areas, is the primary reason for surging rental rates.
NRI demand
The residential real estate segment in Pune, has witnessed considerable demand from non-resident Indians (NRIs) as well, as it has provided stable returns on investment and handsome rentals, points out Atul Chordia, managing director, Solitaire. “NRIs are keeping an eye on under-construction projects that are nearing completion. This is in line with the prevalent trend of buying ready-to-move-in properties or properties that are almost ready for possession,” he says.
Source: https://ecis2016.org/.
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Source: https://ecis2016.org
Category: Lifestyle
