Pune's Unsold Properties Proves Beneficial for Home Buyers

Bangalore: The residential property market of Pune is witnessing huge stock of unsold inventories. In this case, potential home buyers who are waiting to make investment can make a good bargain. However, Pune has observed stable real estate prices in the last 5-6 months.

The residential report of October-December quarter, Cushman & Wakefield stated that, “Though the year (2012) witnessed a substantial increase in launches in Pune, the last quarter witnessed a fall of approximately 60 per cent in number of unit of launches as compared to previous quarter. This was due to developers becoming cautious in the wake of a build-up of high levels of unsold stock during the previous quarters,” reports Ajay Modi of MagicBricks.com.

Gaurav Jain, city-based Purple Realtors stated that in Pune, there is a wide gap between the property prices and the budget of buyers. “Most developers are launching new 2BHK apartment at a price upwards of Rs 65 lakh and it goes up to Rs 70 lakh. However, buyers mostly have a budget of Rs 50-60 lakh. The situation is similar in 1BHK segment where Rs 30-35lakh is the average price while buyers have budget of Rs 20-25 lakh,” added Jain.

Moreover, Pune West has become one of the most popular residential localities because of its close proximity to Hinjewadi IT Park and the industrial hub of Pimpri Chinchwad. The capital appreciation in this area has shot upto 20 percent in the last 5-6 quarters which is 4,500-6,000 a square feet as the property rates have been stable in last two quarters.

Pune is witnessing maximum demand from end-users as high prices and low return have made investors’ confidence low. Also, some developers have decreased the ticket size of 2-bedroom apartments to 900-950 square feet from 1200-1250 square feet, to attract home buyers. 

Also Read: 15 Best Locations to Buy Home in India in 2013