March 06, 2007

PRICE TRENDS IN PUNE:
Current prices in Pune around the IT Park for land is around Rs.1000/- per sq. feet as compare to.  Rs.700/- per sq. ft. few months ago.  Flat prices in Pune range from Rs.1600- Rs.5, 500/- in most areas. Prices have escalated in the last 2 years and people are still buying. As long as the technology boom continues and companies keep expanding in Pune, the real estate demand will be good. After IT the manufacturing sector contributes the most, as Pune also has a strong talent pool with an engineering background.

 

ABOUT PUNE CITY:

PUNE oxford of the east, is established as an academic city providing better opportunities to students to advance their educational growth.  A highly educated workforce in Pune became an attraction to the IT companies and they slowly started setting up their offices in Pune. Infosys was the first of the big ones to come in. Other IT companies followed suit and now Pune is firmly entrenched as one of India’s premier IT hubs.

MAJOR PLAYERS

In last two years Pune Real estate prices have risen by 50 - 100% in most areas. IT/ITES sector has played a major role in causing the real estate boom in Pune.  Growth of the IT/ITES sector has been driving up prices particularly in areas near Hinjewadi IT Park. And Magarpatta.  Few major players like Cognizant, Infosys, TCS, Mphasis, Tech Mahindra, Wipro, Kanbay, Persistent Systems (PSPL), and KPIT are all located in Pune.

Pune started expanding from it’s Western end at Hinjewadi where the IT Park are situated. Prices in surrounding areas like Wakad, Aundh, Balewadi etc. have risen in multiples, in the last few years and still look realistic compared to other metros and IT hubs.

INVESTMENT OPPORTUNITIES

Pune being established as an academic city, and with the growing number of educational institutes lot of students from different cities keep traveling for their education and which is what has encouraged many people to invest in the residential properties which in turn is being rented out to these students. The Annual influx into the city is 1,00,000 out of which 30% approx is students. Also Pune’s proximity to Mumbai and seeing the competitive and attractive prices as compare to Price’s in Mumbai city has attracted lot of investors from Mumbai & NRI’s to invest in properties at Pune. This has added fuel to the spiraling prices in Pune in last two years.

Many new businesses and malls have come up to meet the needs of this ever-growing population. Due to Per capita Income being the highest in India, the substantial buying power of the people coming in has resulted in rents, leases and real estate prices increasing upwards, with no real sign of reduction. The steadily raising price and the real estate trend does not look like a bubble.

With the influx of companies and people, infrastructure is hugely strained. Also there is a lack of a good public transport system.  In short infrastructure & public transportation are still not up to the mark compare to growth in other sectors. This is one of the major issues and an important cause for concern. Leaving this factor everything else looks positive for Pune. In all Pune is an extremely good investment destination for real estate.

LOOK OUT

 In the recent property exhibition conducted at B. J. Medical ground - Pune, from 4th to 7th Jan – 07 there were in all 45 to 50 participants, including Builders / Developers & HFC’s.  Major well-known and prominent builders had participated along with few new and upcoming builders. 

The overall result of the exhibition was not as per builder’s expectations. The feedback received from most of the builder’s representatives present at the exhibition was that, people are still expecting a downfall in the market. Most of the people had visited just to feel the current real-estate market and to know what type of development is coming up and at what price. The demand for 1 & 2BHK is still on the higher side compare to 3 & 4BHK apartments. Developers were seen offering an exhibition discount of Rs.200 to 250/- for spot registration but there were hardly any buyers to grab the opportunity. 

At the same time we had noticed developers from Magarpatta receiving comparatively a good response from the visitors and we further were surprised to know that they were getting 20 to 25 bookings per day. When enquired more about the fabulous response we came to know that, in today’s busy world  & moreover taking in to consideration the cost factors relating to transportation, people opt for the most convenient factors, which Magarpatta City provides. It provides all the basic facilities that any family would look out for before finalizing their ‘DREAM HOUSE’.  It has got school, offices, shopping centers, entertainment centers, hospitals and medical center and recreational facilities within the complex itself. Moreover it’s a complete lush green Oxygen Zone of 400 acres free from pollution. 

We also found many enquiries from areas like Aundh, Banner, Balewadi, Bavdhan, Wakkad, which are nearly located to Hinjewadi I.T Park.