The last few years have been difficult for all. The pandemic brought to centre stage the need to own your own home. This has resulted in the demand for residential properties in the country. A recent report by a renowned property expert states that the sector witnessed a pan India residential demand (searches) rising by 16.9% QoQ and 27.7% YoY and supply (listings) by 2.9% QoQ and 16.2% YoY, in their latest PropIndex Report for Quarter 2, 2022.
This increase in demand highlights the financial recovery and stabilization of incomes in the country. As life gets back on track, experts predict the demand to go up. The same report states that ‘Pune has displayed a sharp increase in demand (from 3.9% in Q1, 2022 to 8.1% in Q2, 2022) and the average prices (from 0.5% in the previous quarter to 1.3% in Q2, 2022). On the other hand, supply showed a reverse trend (From 2.2% to -2.0% in the current quarter).’ In this blog, RGS Realty elaborates on the factors responsible for the high demand for residential properties in Pune.
The growth of IT, MNCs and BFSI in the city
Pune’s growth as one of the country’s largest Information Technology and Information Technology-enabled Services hubs is known to all. Additionally, the city has witnessed tremendous growth as an automobile and education hub in recent years. The city continues to welcome a growing number of Multi-national Corporations (MNCs) daily. Banking, Financial Services, and Insurance (BFSI) companies and co-working spaces are also on a huge rise in the city. With employment opportunities blooming, the demands for homes and amenities that allow a modern lifestyle continue to rise in the city.
Infrastructural development
Infrastructural development has aided the growth of the city. The city’s close connectivity to Mumbai and other infrastructure have helped the boom of Information Tech in the city. At the same time, a well-developed local transportation mechanism, including the in-progress Pune Metro, has eased commuting and accessibility across the city. The surge in the availability of social infrastructures like hospitals and schools is also the primary driver of investments in housing in Pune.
Affordability of markets
The affordability of homes plays a huge role in the demand for properties. A number of residential projects in Pune are more affordable than in other parts of the country. With a number of developers in the market, there are ample opportunities for buyers to invest in good residential properties with adequate space and amenities available at low prices. As new projects line up in the city, experts predict that the appreciation rates are going to be highly positive. A wide spectrum of options, ranging from basic flats to plush, luxurious residential projects, make up for the demands of a large section of society.
The emergence of micro-markets
Several popular micro-markets in the belts around the city, including Hinjawadi, Kalewadi, Chakan, etc., have surged the demand. Additionally, connectivity to the peripheries has also led to the high demands for real estate and infrastructure development in the city.
Other miscellaneous factors
The city has thrived as one of India’s leading cultural and educational capitals. The ‘Oxford of East’ as they call Pune, has a number of established educational institutes that contribute to the demand. Add to it a favourable climate, the above-mentioned job scenarios, and factors of reverse migration, favourable government policies, low home loan rates, and the marginal increase in incomes, among others, which have contributed to improved market dynamics in Pune and the demand for housing.
The economic growth fuelled by the arrival of corporate firms, expansion of education institutes and other developments has accelerated the demand for residential properties in India. The second half of 2022 is expected to bring a renewed demand for affordable, premium homes with good builds across Pune.
RGS Realty believes that goodness, especially when building your dream homes, goes a long way. Born out of the excellence of Sukhwani Constructions, they strive to change the lifestyle of Pune. Their finesse and expertise are seen through exceptional residences around the city. To know more about them, visit www.rgsrealty.com.
Sources:
www.propertypistol.com/blog/pune-shows-a-sharp-rise-in-residential-real-estate-market-demand/
www.punekarnews.in/pune-displays-a-sharp-increase-in-demand-in-residential-real-estate-market/
www.99acres.com/articles/what-does-2022-entail-for-pune-residential-market.html