By Rohit Kothare on Aug 24, 2020 12:17:55 PM
There may be a temporary state back in the Pune Real estate market creating tensions among the home seekers looking forward to buying properties in Pune. However, the future of real estate in Pune looks pretty much welcoming for investors. The temporary stagnancy will definitely bounce back to wiser decision making as Pune favors massive cosmopolitan culture with extraordinarily affordable price trends.
COVID'S IMPACT ON PUNE REAL ESTATE
The developers’ concerns have dipped recently due to the uncertainty caused by the pandemic which has also adversely impacted the stakeholder sentiments for the coming six months.
The current real estate market is stagnant, as the developers are not planning to pump in any money or continue with the construction of the on-going sites due to the lockdown. Even if the market is on hold for six months there is a lot of unsold inventory from the last year.
With COVID-19 package, Rs 25,000 crore stress fund has been declared by the government to fund and help the real estate builders to finish and launch their pending projects which got hampered due to the lockdown. This would offer substantial relief and focus to bring economic stability in the real estate sector.
Considering the current scenario, a lot of construction companies have decided to do a digital launch. Those looking forward to buying a property can request on the project websites and do online enquiries. Time slots will be provided to the customers in those dedicated timings they can do site visits and avoid public gatherings. Digital project launches are supporting home seekers by avoiding all the current hustle.
HOME BUYING TO BECOME AFFORDABLE
While home interests were already low as 8% RBI is making borrowing cheaper for homebuyers by reducing the repo rate to 4.4%.
The banks are further reducing the Interest rates which is a booster for home buyers. The market is bringing clarity for investors by bringing a cost advantage with the impact of COVID-19 and making home buying affordable.
The banks are readily implementing the current updates suggested by RBI to boost sentiments of real estate property buyers. To boost interest among the home buyers, especially first-time home buyers, the government has introduced some special benefits. Section 80EEA focuses on supporting buyer sentiments till March 2021.
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APPRECIATION IN PROPERTY RATES
There isn't a significant upwards or downwards movement in terms of pricing for properties in Pune. The Pune real estate scenario is blessed with a healthy appreciation over time. The price growth has been quite slow, but steady.
Even though the ongoing projects have not been launched, the demand for the unsold inventory in the west and east region of Pune is attracting buyers' interests. The average PSF rate as of March 2020 is ranging between INR 5.200 to INR 5,500. The government might launch new measures to make it more lucrative for buyers to invest in real estate.
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According to a JLL Report,
During H2 2019, Pune had 86% new launches of the ticket size less than INR 50 lakhs, while there were 91% of launches of residential properties less than INR 75 lakhs worth ticket size.
The North-West market of Pune showed strong growth in demand of residential and commercial properties. Submarket locations like Balewadi, Wakad, and Mahalunge in the North-West observes about 33% of new launches in residential properties also driving interest for Baner-Balewadi commercial properties.
Locations in East of Pune like Mundhwa with submarkets like Keshav Nagar, Kharadi, and Wagholi are identifying greater demand as well. Developed IT and Business hubs in the north and east of Pune with better connectivity in nearby areas have generated robust demand for residential properties. Also, over the past few years, Pune has observed greater demand in properties with appreciation in the prices.
POST-COVID REAL ESTATE WILL BOOST
A severe slowdown in demand for property was observed due to lockdown. The property prices would continue to be the same as the market trend was earlier and not there wouldn’t be any increase in the rates.
Pune is a major Business and IT Hub, a lot of people have planned to buy their dream home. Infrastructural development and Cosmopolitan living in Pune have boosted interests among many of the first home buyers. The reasonable shift in the demand for unsold inventory due to the stagnancy caused during the lockdown has brought enough transparency which is likely to improve decision making for real estate buyers.
In the End..
Choose from a range of various properties spread across Pune, your choices may matter according to the vicinity, connectivity, luxury, and amenities. Explore your options online and consider new financial plans for your investment.