How Pune offers home for every budget-class

Sulekha.com

Thanks to the subdued market condition, Pune’s residential real estate market provides the ideal opportunity for end-users to own a property, feels Kishor Pate, Chief Managing Director of Amit Enterprises Housing, a leading real estate firm in Pune. He further says that for end-users, this is the best time to grab the most suitable home in a good area at the best possible price.

The time is ripe, as there is plenty of scope for hard bargaining as developers are finding it hard to sell their finished products.

Due to the subdued market condition, small and medium builders are not able to generate capital flow, hence being compelled to wrap up their current projects with minimum cut-off margins so that they can move on to their next project.

Not all cities in India present a good option to invest in real estate property, as most of them are not currently performing well in the market. In other words, it is difficult to find a good residential supply at a healthy price.

Emphasizing that Pune has been the best-performing residential real estate market in the last few years, Kishor admits that not all locations in Pune are performing equally well and one has to target the best possible area offering the maximum benefits.

Many areas don’t even have proper infrastructure like roads, streetlights, waste disposal systems, security arrangements and other basic facilities like drinking water, transportation and educational institutions.

However in Pune, even mid-income and premium housing is affordable to buyers in well-developed locations when compared to cities like Mumbai and Bangalore. In contrast, there is currently not a single location in the Mumbai Metropolitan Region which is performing well, due to the exorbitant pricing and severe infrastructure deficit. 
 
Though Pune’s residential property market offers an excellent option for homebuyers, due to the current market conditions and dull realty outlook for 2013, the market is even more suitable for the end-users as opposed to investors. According to experts across major cities, it is not advisable to invest in property for a short-term capital gain, and Pune is no exception to this trend.

So, one can conclude that the time is right for end users to invest in property in Pune, but not for speculative investors. End users have a good number of options in various locations and can also get a good deal from developers after some hard bargaining. This option was not available to them few months ago.

Also, homebuyers would certainly benefit from the long-term appreciation of residential real estate because they are buying property for their own use, and immediate capital appreciation would not matter to them. Even if their property prices appreciate to 100 per cent or more, they can feel happy about it as they will not be in a position to book profit, feels a developer in Pune.

On the other hand, investors, who drive the property prices, have been kept at arm's length by developers, as they want to clear their inventory rather than encouraging speculative activities which will ultimately drive away home buyers. These investors’ sole intention is to sell properties at inflated figures as soon as the market picks up again.

“Investors are one of the major reasons why residential property prices in Mumbai and Delhi have gone out of control,” feels Kishor.