The real estate sector is the second largest employer in India next only to agriculture and is expected to grow by nearly 30 percent over the next decade. The Indian real estate sector which comprises of sub-sectors such as housing, retail, hospitality, and commercial is expected to touch US$ 180 billion by 2020.
The housing sector alone contributes 5-6% to the country’s GDP and is well complemented by the increasing demand for office space in urban and semi-urban areas. It is also expected that real estate will incur more NRI investments in both long and short-term in the next decade.
Pune is expected to be one of the most favoured real estate investment destinations for both Indians and NRIs alike.
Growth of Pune Real Estate
In a recent study of real estate market in India conducted by PropEquity, Pune has emerged as one of the top cities to invest in India, next only to Bengaluru. It has been a rough period for Indian real estate as both the property occupancy and sales have drastically dropped across India, especially in the Northern parts of the country. There has been a drastic reduction of 27% in Delhi-NCR real estate market value in last 12 months.
Pune is the only city in India that has maintained consistent growth in real estate despite the bad market condition and has seen an appreciation of 25 to 30 percent every year. In fact, there is a heavy demand for residential properties in Pune with the real estate sector recording compound annual growth of 14 percent. To fulfil these requirements, a number of residential projects are upcoming in areas like Keshav Nagar, Wakad, Balewadi, Ambegaon, Hinjewadi, etc.
The eastern belt of Pune has also seen a massive growth thanks to its proximity with IT parks and airport. With the increase in property price in Bangalore, Gurgaon, Chennai and Mumbai, Pune has now emerged as a preferred destination for IT companies. And the best part is that the development in Pune is happening in a phased and planned manner thus showing great potential for future expansion
According to a recent survey by Magicbricks, despite Demonetization last year, Pune has shown an annual growth of 3.4%.
While most units fall in the Rs. 30 Lakhs -Rs 1 crore price bracket, there are luxury houses worth 20 crores as well.
Awesome weather, affordability and quality of living are few other factors that have resulted in improving property prices in Pune. As per “Mercer 2015 Quality of Living” rankings, Pune is ranked 145 which is significantly higher for the quality of living than the country’s traditional metros such as Delhi and Mumbai. It doesn’t come as a surprise when not only people in India but NRIs also invest in Pune Real Estate market resulting in the upward growth trend.