Pune, has always been a lucrative destination for the real estate sector. Realtors from across the country are attracted to this metropolitan city due to its value-oriented return of investments and remarkable liveability quotient. While the global COVID-19 pandemic did delay launches and related revenue opportunities, Pune proved to be a resilient market that bounced back with a rapid recovery.
A recent report by CBRE stated that there was over 75 percent growth in housing sales across the top seven cities in India in H1 2021, with Pune being at the forefront with an approximate 26 percent share in sales. This showcases the potential of the city’s residential market.
As the city’s realty sector gradually levitates back on its growth trajectory, the following are a few key reasons for this outcome and why Pune is poised to be a thriving realty destination in the near future:
1. Rising trend in Homeownership: The pandemic induced lockdown imbibed a sense of homeownership amongst a lot of people who once preferred to stay on rent rather than own a home. The increasing need for safety within residential premises unlocked the need for purchasing a home that is well equipped with security features and safety protocols. A report by Anarock found that 71 percent of the respondents are presently looking to purchase property for their end-use compared to 59 percent during the first wave of the COVID-19 pandemic in 2020. This showcases the positive sentiment around homeownership and the potential rising trend in the sector.
2. Assortment of projects in every category: Pune offers residential projects in various categories and configurations. The city provides a plethora of choices from affordable housing to mid-income, luxury, and uber-luxury homes. There is also a huge demand for segregated compounds, integrated townships and mixed-developments that offer secured and open spaces. The majority of demand and supply currently seems focused towards large scale integrated development in the peripheral localities of Mahalunge, Ravet, Manjari, Kharadi and Dhayari. We are also seeing active demand from end-user markets like Baner, Balewadi, Hinjewadi, Kondhwa and Mamurdi. These key micro-markets have accounted for majority of new launches.
3. Positive government Initiatives: Due to the huge financial obligations involved in the home buying process, many fence-sitters were sceptical about taking their final decision to buy a home. When the pandemic began, there was a disruption across sectors that compelled people to have a close scrutiny of their financial status. People were cynical of the view on home buying. However, the Government stepped in with a ray of hope and executed various initiatives to boost the sector. This includes the Union Budget’s ambitious push to affordable housing, the RBI’s accommodative stance, which brought down home loan rates to a historic low, and the timely reductions in Maharashtra’s stamp duty rates. All these collectively contributed to the upliftment of Pune’s rock-strewn market and revived the momentum. This was evident as a report by Knight Frank stated how housing sales surged 67 percent during the January-June period to 99,416 units primarily from two Maharashtra cities, Pune and Mumbai.
4. Public Infrastructure: Pune’s growth is largely contingent on its infrastructure projects that drive the city and has realty potential. The proposed Chhatrapati Sambhaji Raje International Airport will propel the city’s residential market as travelling across the country and the world will be expedient. The upcoming Pune Metro Line 1 (PCMC Building to Swargate), Line 2 (Vanaz to Ramwadi), and Line 3 (Rajiv Gandhi Infotech Park in Hinjewadi via Balewadi to Shivajinagar) will bind all the important commercial, educational and residential hubs of the city thereby improving connectivity and convenience.
Furthermore, the ambitious Pune Ring Road, a 128-kilometer ring road, will connect the unconnected localities of the city, decongest the traffic situation and provide commuters ease while travelling. These developments will help in boosting to the city’s socio-economic development.
5. Clean, Green and Serene Environment: Pune is nestled in the lap of nature and is surrounded by greenery and mountains. This gives the city a pleasant and serene weather all year round. The roads are dotted with lush greenery, and the residential projects too have sprawling acres of green spaces.
(Amandeep Singh is Zonal CEO- East, West, Godrej Properties Ltd.)
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