Home » News » Real Estate

Presents

Co-Sponsored by

In Association With

Aug 12, 2013, 01.26 PM IST | Source: Moneycontrol.com

Pune residential & commercial real estate in 2012 and 2013

The prices for homes in Pune city moved up by an average of 12%. Average appreciation in 2013 will be between 12-15% across the city. Hinjewadi, Kondhwa and Undri contributed almost 40% of the total sales in 2012.

RESIDENTIAL REAL ESTATE

- Pune Residential Real Estate In 2012

The prices for homes in Pune city moved up by an average of 12%. Average appreciation in 2013 will be between 12-15% across the city. Hinjewadi, Kondhwa and Undri contributed almost 40% of the total sales in 2012.

There was a reduction in number of new launches in 2012, but supply increased in the mid-budget segment (Rs. 50 lakh to Rs. 1 crore) and the luxury segment (Rs. 1 crore and above) across the city. This trend will continue in 2013. 2012 also saw an increasing supply of units in the super luxury segment (Rs. 4 crore and above), predominantly in the Eastern corridor (Boat Club Road, Koregaon Park, Kalyaninagar and Vimannagar).

A growing number of local entrepreneurs are further fuelling the growth of the super luxury segment. Developers in the super luxury segment are offering lot of value-addition in projects that have international tie ups, such as with reputed global developers (Panchshil Donald Trump), international architectural firms and international designers. Such tie-ups have increased the emphasis on detail in the projects, and to improve technical parameters.


Outlook For 2013

Generally, residential property buyers in Pune are now concentrating on location, developer reputation, pricing, amenities and specifications as well as completion schedule. The weightage given to each or combinations of these priorities varies. However, the least level of flexibility is evident on the location and pricing fronts.

The demand for residential property in Pune continues to be massive in 2013, but this demand is driven throughout by intelligent decision-making. As a rule, most of Pune's home buyers know that they have options, how the market is currently behaving and how it is likely to behave in the foreseeable future. Pune was one of the best-performing markets in 2012, which was by all standards a challenging year for most cities. Given that the market drivers that made this happen are still very much in place, this trend will continue in 2013, as well.

The available inventory in 2013 is equivalent to almost 9 months’ stock, which indicates a very healthy absorption level in the city. In 2013, Pune will see stronger demand from IT / ITeS and manufacturing sector employees, Mumbai-based investors and NRI clients who are looking to invest in stable markets. Among the developers who will be launching residential projects in Pune during 2013 are ABIL, Kumar Properties, Kalpataru, Tejraj Developers, Urban Lifestyle and Urban Homes.
 

COMMERCIAL REAL ESTATE

Commercial Space Absorption In 2012

In 2012, the total absorption of commercial real estate in Pune clocked at 4.5 million square feet, which was an increase from the absorption of 4 million square feet in 2011. The region-wise absorption break-up was:

- Pune East: 2.2 million square feet (49%)

- Pune West: 2.3 million square feet (51%)

In terms of commercial real estate asset classes, SEZs accounted for an absorption of 1.7 million square feet (38%). Non-IT commercial spaces constituted 0.9 million square feet (20%) and STPI spaces for 1.9 million square feet (42%). Pune's total absorption of IT/ITeS real estate in 2012 was 3.6 million square feet, or 80% of the total absorption in the city. This represented a decline from the 83% noted in 2011.


- Office Rentals Movement In 2012

In 2012, the weighted rental rates in Pune rose by 18-22%, largely as a result of a constraint in the supply pipeline of Grade A office spaces available in the city across all asset classes. Rentals in the Central Business District (CBD) comprising of Koregaon Park, Camp, Wakdewadi, Shivaji Nagar and Senapati Bapat Marg - rose by 16%, while rentals in the Secondary Business District (SBD) - comprising of Viman Nagar, Yerwada (off Airport Road), Hadapsar, Baner, Aundh and Bavdhan - and the Peripheral Business District (PBD) - comprising of Hinjewadi, Bhosari, Kharadi and Phursungi - rose by about 25%.
 

- Office Space Demand Scenario In 2012

In 2012, demand for commercial real estate in Pune was primarily focused on the SBD, which accounted for 2.4 million square feet of the overall demand within the city. The PBD saw decent action as well, accounting for 1.6 million square feet. In particular, Hinjewadi saw a high level of demand as it catered to the larger requirements of corporate occupiers. Pune saw a large number of occupiers relocating from their existing offices and moving into larger setups in 2012. Most of the absorption in the city was a result of such expansion moves by occupiers.

Thanks to the diversified profile of Pune's commercial real estate market, the city saw traction not only from IT/ITeS firms; there was also a considerable amount of traction from BFSI clients as these firms actively ramped up their presence and manpower headcount in Pune in 2012.

 

Outlook For 2013

Given the diversity of office space demand, which encompasses the IT/ITeS, manufacturing, automobile and BFSI sectors, Pune will continue to account for healthy commercial real estate  absorption in 2013. While office space demand across India saw a 1618% dip in 2012, demand in Pune surged upward by 6%. This clearly signifies the confidence and intent that clients have shown towards the city.

The massive display of investor confidence seen in the city during 2012 will continue to be a driving force in 2013, as well. Jones Lang LaSalle is actively managing a large number of investment transactions coming from HNIs and institutional investors, who are trading enthusiastically in commercial assets because of the attractive valuations.

Office space rentals in the non-IT commercial property asset class are likely to stabilize after the second quarter of 2013, thanks to the influx of fresh stock - especially in the Eastern corridor. SEZ rentals in Hinjewadi are expected to remain stable, since considerable supply is slated to hit the market there in the second half of the year. On the other hand, rentals for commercial office spaces in STPI projects are expected to increase because of the limited supply of Grade A office spaces throughout the city.

ADS BY GOOGLE

Videos

more »

Property rates
  • Residential
  • commercial
Mumbai
Capital Values Rate/Sq ft (INR)
Aajiwali
3000 - 5000
Ambernath
3000 - 5000
Badlapur
1000 - 3000
Bhandup (West)
11000 - 13000
Chembur (East)
15000 - 17000
Chembur (West)
11000 - 14000
Dombivali (East)
4000 - 6000
Ghatkopar
13000 - 15000
Heeranandani Gardens Estate - Powai
25000 - 30000
Hiranandani Gardens Estate - Powai
25000 - 30000
Kalyan (East)
2000 - 4000
Kalyan( West)
3000 - 5000
Karjat
1000 - 3000
Khandala
8000 - 10000
Kharegaon
5000 - 7000
King Circle
17000 - 28000
LBS Marg
12000 - 15000
Lonavala
3000 - 5000
Mulund (East)
11000 - 14000
Mulund (West)
11000 - 14000
Mumbai Nasik Highway
3000 - 6000
Powai
15000 - 17000
Senapati Bhagath Singh Road
3000 - 5000
Sion (East)
18000 - 21000
Sion (West)
17000 - 22000
Tilak Nagar
12000 - 22000
Ulhasnagar
3000 - 5000
Vikhroli
11000 - 14000
4 Bunglows
17000 - 28000
7 Bunglows
13000 - 23000
Chandivali
10000 - 15000
Malad (East)
12000 - 14000
Versova
21000 - 24000
Airoli
4000 - 8000
Belapur
6000 - 9000
Ghansoli
6000 - 8000
Kalamboli
4000 - 9000
Kamothe
4000 - 6000
Nerul
7000 - 10000
Palm Beach Road
12000 - 15000
Panvel
3000 - 6000
Sanpada
8000 - 10000
Sea Woods
8000 - 10000
Ulwe
3000 - 6000
Uran
3000 - 6000
Vashi
9000 - 12000
Altamount Road
62000 - 72000
Breach Candy
62000 - 74000
Chowpathy
48000 - 58000
Colaba
42000 - 46000
Cuffe Parade
67000 - 69000
Dadar(East)
32000 - 34000
Dadar(West)
29000 - 32000
Lower Parel
32000 - 34000
Mahalaxmi
38000 - 40000
Malabar Hills
68000 - 75000
Mumbai Central
23000 - 34000
Napean Sea Road
66000 - 74000
Parel
26000 - 34000
Prabhadevi
37000 - 39000
Tardeo
41000 - 49000
Worli
36000 - 41000
Andheri (West)
18000 - 20000
Andheri(East)
15000 - 17000
Bevarly Park
5000 - 7000
Bhayander (East)
5000 - 6000
Bhayander (West)
3000 - 5000
Boisar
1000 - 3000
Borivali (East)
11000 - 13000
Borivali (West)
10000 - 14000
Dahisar
4000 - 8000
Goregaon (East)
13000 - 17000
Goregaon (West)
12000 - 14000
Kandivali (East)
12000 - 14000
Kandiwali (West)
11000 - 12000
Malad(West)
9000 - 14000
Mira Road
5000 - 7000
Naigaon
1000 - 4000
Nala Sopara (Eastt)
3000 - 5000
Nalasopara (West)
3000 - 5000
Poonam Nagar
6000 - 8000
Shanti Nagar
7000 - 9000
Shrishti
6000 - 9000
Vasai Road
1200 - 4000
Virar
1000 - 3000
Note: Price trend are based on asking rate and not necessarily on the transaction date
Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.