A marked rise in the prices of Pune’s real estate market sets homebuyers and investors thinking. Let’s find out what’s in store for us all.
Pune is often referred to as the cultural capital of Maharashtra. Due to its proximity to Mumbai, many prefer owning a second home in Pune for the weekend or as a festival retreat. Many factors are driving the property prices in Pune to escalate, directly or indirectly affecting middle and low-income groups. Does the common man have a choice or a desire to own a home of his own? Let’s analyze a few key factors that decide the prices of Pune’s properties.
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According to a report by a reputed newspaper in India, Pune’s surge in properties in July and September 2023, escalated due to a rise in raw materials like steel and cement prices. Metropolitan cities like Delhi, Mumbai, Bengaluru, Chennai, and Kolkata experienced a 7% increase in prices as compared to the previous years.
A 2 BHK apartment of 1070 sq. ft. that ideally costs Rs. 73,83,000 at Rs. 6900 per sq. ft. will now cost Rs. 74, 90,000 at Rs. 7000/sq ft. A sharp rise in the difference of Rs 100/sq ft raises the price of the apartment by Rs. 1, 07,000. Demand for properties in upscale locations is on the rise and catering to the needs and demands of the consumer also raises the price of the property.
Other factors also govern the rise in property prices, let’s analyze them further.
Economic Growth:
Over the last couple of decades, Pune has seen exponential economic growth in the IT, manufacturing, pharmaceutical, and construction sectors leading to many job and business opportunities. People from other states have migrated to this city for its abundant opportunities and made Pune their home.
Infrastructure Development:
Pune’s roads and national highways have undergone major changes in the last few years making commuting to Mumbai and other states in India easier and more accessible. As people steadily migrate to Pune from other states, this puts a lot of pressure on builders and developers to build mega residential projects and offer state-of-the-art amenities to its residents. This trend has also made property prices surge in Pune.
Compared to other metro cities in India, Pune is a smaller city. Due to the limited availability of land, and the surge in cement and steel rates, prices of properties have also surged. Acquiring and developing large areas of land require manpower both skilled and unskilled along with large transportation of raw materials like steel and cement. This raises the transportation costs directly affecting the prices of properties.
Investor Interest
Pune’s thriving education, manufacturing, construction, and IT sectors have brought positive changes in investors. The NRI investment boom has caught on along with Pune locals investing in properties too, leading to a sharp surge in property prices in Pune.
Government Policies & Initiatives
Pune’s municipal and administration departments have undertaken several initiatives and implemented policies to enhance the city’s living conditions. The Pune Metro project has eased the traffic woes considerably for the people of Pune. Pune’s civic administration to promote affordable housing, waste management, and garbage disposal and also provide eco-friendly living has boosted property prices in Pune.
The thriving IT sector and business landscape in Pune has led to a vast infrastructural expansion in the city giving a boost to education, and the middle-class segment thereby fostering economic growth and generating employment opportunities. The expansion of roads and national highways has made traveling to other states for business easier and more accessible.
The quality of life and immense lifestyle offerings have propelled Pune’s real estate market to new heights. It continues to evolve by attracting investments, which presents immense opportunities for developers and homebuyers.
A marked rise in the prices of Pune’s real estate market sets homebuyers and investors thinking. Let’s find out what’s in store for us all.