Pune residential market flourishes as the most.....
01 Nov 2012
Pune residential market flourishes as the most preferred affordable housing destination; vacancy levels remain healthy at 21% as absorption grows strong owing to the development of IT/ITeS and Manufacturing Industries.
Market Overview:
- Since 2009, Pune has witnessed the launch of close to 130,000 units and market vacancy levels are relatively healthy at 21% compared to cities like Mumbai and NCR where vacancies range significantly over 30% levels.
- Almost 70% of the upcoming supply in the Pune market is expected to be ready for possession by Q4 FY13.
- Absorption levels are showing an uptrend as the market heads into the festive season and this is expected to sustain till the end of the current financial year.
Growth Drivers:
- Pune boasts a strong presence of the engineering and automobile sectors which has helped consolidate Pune's position as the 'Detroit of India'.
- Pune has also emerged as a major IT destination. Infosys, Wipro, TCS and Syntel have their bases here and have been expanding operations at a brisk pace
- The IT/ITeS sector's emergence in tandem with the setting up of various manufacturing units in Pune over the last decade has resulted in the city's real estate market expanding in all four directions
- Ample availability of land in eastern and western peripheral locations ensures that the residential product coming up is well within the affordability criteria of their catchments
- Prices have moved in a narrow range in the four quarters ending Q2 FY13. The Pune market is largely end user driven and as such not subject to much volatility.
Pune- The Affordable Buyer's Paradise
- It has been observed that the Pune home buyer shows a marked appetite for product priced within a budget o INR. 5 mn. The fact that 61% of the under construction inventory is targeted at this segment augurs well for the market
- A little over 83% of the under construction inventory is priced under INR. 7.5 mn.
- 58% of the units absorbed so far have been in the affordable and mid segment housing in the quarter ending September 2012 (Q2 FY 13)
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