Published & Updated as on - 2010-03-11
The price-sensitive and well-regulated real estate market of Pune, did
not witness the kind of runaway hike in property prices as seen elsewhere in
the country. So even after the recent price hikes following the post-slump
correction, property prices here are much below the peak prices. And real
estate here is on road to rapid revival. By Mohammed Aslam, Head JLLM, Pune.
Pune, today figures among
the top 10 cities. A recent FICCI-Ernst & Young survey ranks Pune at number
seven after Delhi, Mumbai, Chennai, Bangalore, and Hyderabad. The boom city has
been truly resurgent on real estate front, on the strength of its IT/ITes
industry. Especially with thepromotion of this region as a ‘Knowledge Corridor’
by the state government, Pune’s IT industry has seen substantial growth.
Besides, being a strong industrial, education and hospitality hub, Pune’s real
estate is truly propelled by multiple drivers.
Residential
sector
Pune has transformed from a
sleepy town – a pensioner’s paradise to an active real estate destination
catering to housing requirements of the increasing population as well as an
investment destination for those looking at second home options. Strong
economic generators offering good employment opportunities, coupled with better
standard of living attract the former category, while pleasant salubrious
climate, good connectivity and reasonable real estate prices attract the latter
category of buyers to Pune.
The key residential micro
market drivers today are the IT industry and the manufacturing sectors. Quality
residential real estate development started in 2002- 03. It was in this
property cycle that locations like Koregaon Park, Dhole Patil Road, Shivaji
Nagar, Deccan, Model Colony and nearby areas gained in prominence as premium
residential locations. The year 2004 to 2007 was a boom time in the property
market, with prices reaching newer heights. In this phase of the property
cycle, locations like Kalyani Nagar, Viman Nagar, Senapati Bapat Road, Karve
Road, Kothrud, Aundh etc. gained prominence.
After witnessing a slump
over the last few quarters, Pune residential market is showing signs of
revival. The market has been characterized by a positive sentiment, largely due
to rise in end user confidence, together with improving economy, favourable
borrowing conditions and rationalized capital values. This cumulatively led to
reviving the sale volumes, with the city witnessing the launch of various
projects in both mid and high segments in the second half of 2009.
Source: http://www.realtyplusmag.com
Luck In
Land!
As real estate buyers hesitate to invest in
constructed property, fearing price correction and delay in delivery of
projects, investment in land could well be a profitable proposition.
Buy land, they are not
making it anymore. So goes the famous saying of Mark Twain. Historically, land
investment has been more profitable and less volatile. As the population keeps
growing and the demand for land goes up, this precious commodity gets scarcer,
leading to price appreciation. Land is a basic necessity for any real estate
development. And like gold, land generates emotional attachment. And
considering the current demand-supply scenario land as a commodity will remain
a precious, much-in-demand asset for years to come.
Why invest in
land
Identifying an asset class
which gets least affected during the downturn is critical for an investor. And
according to Amol Shimpi, National Director, Land Sales of Colliers
International, buying agricultural land or land in plotted developments on city
outskirts has always provided the solution. “The advantage of investing in land
is that holding costs involve just the annual property tax. In many locations
across the country, the government’s ready reckoner rates for land parcels are
lower than the actual market prices,thereby allowing the investors to structure
the transaction in such a way that the stamp duty and registration costs are
minimized”.
Source
: http://www.realtyplusmag.com |