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Thursday, November 12, 2009

Residential real estate market picks up momentum in Pune - Cushman & Wakefield report

The price of real estate in Pune city, which was on a low for most of last year, has stabilized and in fact posted a bit of a rise in select locations, if recent research by real estate advisory firms, Cushman & Wakefield (C&W) and Jones Lang LaSalle Meghraj, are any indication.

Positive Sentiment and Increased Activity:

The report for the third quarter of the year (July-September) observed that the market was characterized by a positive sentiment and increased activity was witnessed. "The city witnessed the launch of various residential projects in the third quarter across many micro markets in both mid- and high-end segments. Capital and rental values appreciated across the city in the third quarter," the report observed. However, values are still below their all-time highs by about 10-30 per cent in Pune, the report said.

If property prices increase too much too soon...

Aditi Vijayakar, executive director of residential services at C&W said, "The price and the buyer's sentiment are critical in the current market as key parameters influencing sales. Capital values in select locations in Pune are likely to see growth in the coming months. However, if prices increase too much too soon, there is a likelihood of them correcting again shortly after; the ideal graph representing recovery should be gradual and in line with the demand that calls for a period of considerable stabilization before the hike."

Property Price Correction and Value for Money Offers:

According to Vijaykar, the Pune residential market has started to regain momentum in the past quarter with all locations witnessing marginal increase in rental and capital values by September 2009. Demand has started to move upward largely driven by end users. Pune is highly price sensitive and the current upward trend is largely a result of the correction in values that was witnessed in the last few quarters which have made the values more affordable. Also noticeable is that the large part of the transactions are happening in the newly-launched projects which offer more competitive values.
To read more, please, visit The Times of India

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  1. So again ToI propaganda stating that everything has become normal in RE in Pune.

    It may be partially true but ToI showing interest means something is coming around the corner.

    And as expected, it is the ToI sponsored property show at Le Meridien in Pune!

    Three cheers to ToI!

  2. No matter what happens it will not be a speculative growth now as many professional investors and greedy builders got brunt during RE slow down.
    So expect a slow but healthy growth. IMO the pricing are good in many places and in many projects in Pune but many still continue to be expensive with bad valuation. Since nothing is going to run away take your time in doing good homework and then commit. Prefer to buy a 70% constructed home. Many options in market. Buyer can still dictate few terms but not like 6 months back.
    Again IMO may be a good time to look for a good home if you are an end user. And to all speculators ... stay the hell out of RE because you guys made it difficult for a genuine buyer to afford a home.

    And on TOI exhibition... ok who buys a home from exhibition. Its not like buying some towels from a handloom house sale cum exhibition.
    Just my 2 cents.

  3. From an Oxford Economist : When the rates were reduced, that they are going up again? India will feel the brunt of slowdown in 2010-2011 and 2011-2012. Simple reason... in 2009 salaries were not cut, bonuses were paid for year 2008 performances. In 2010 and 2011 salaries will come down and no bonuses and variable payments, especially to IT guys. And more over, IT growth is DEAD. AVG Sal for IT professional of 5-7 years experice is 4Lakhs to 5 Lakhs per annum. This is NOT AT ALL going to be increased in the cooming 3-4 years. Can these guys afford 35-40Lakhs apartments ????????????? Answer is No..