A thriving hub of both academia and commerce, Pune has been on the property investment radar for a number of years.
Capital appreciation has historically been strong in Pune, and the same is expected going forth in 2014, especially post-elections. Pune is one of the few real estate markets in India that has managed to remain strong despite economic and political volatility, and with a number of infrastructure improvements set to further enhance the area, prices are expected to increase throughout the year. In fact, in the locality of Pirangut, price values have soared by over 13 per cent over the past eight months, proof that the real estate market can handle inevitable ebbs and flows and still provide high returns.
Pune’s ability to withstand market fluctuations can be attributed, at least in part, to the strong market fundamentals it presents.
There is a constant demand for housing in the city, which is home to over nine universities, and a strong job market brings people from across India to work . Pune’s healthy employment sector is fuelled by the automotive and IT industries, with the latter set to expand with the development of the Hinjawadi IT Park. This expansive development will create thousands of jobs, and is estimated to cost Rs 600 billion to build.
As property analysts report that central Pune has lost some of it’s appeal, emerging submarkets are stepping into the limelight. The Pimpri Chinchwad Municipal Corporation is a prime example of an area that is poised for extensive – and regulated – development, while other areas like Nagar Road (recently heralded one of the top six investment spots in the country), Dhanori and Undri also offer assured appreciation to investors willing to buy and hold for at least four to five years.
While other micro markets throughout India stagnate, there has still been plenty of activity in Pune. A recent survey conducted by realty research firm Liases Foras has revealed that Pune saw a 22 per cent increase in the volume of residential sales in Q1/2014. There was an approximate four per cent increase in the number of new properties launched in this period too, providing property investors with plenty of opportunity.
Old though it may be, Pune is still evolving and growing today. This cosmopolitan city offers investors excellent rates of return, low vacancy rates and the opportunity to invest in property in one of the most sought-after areas in India.
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