Residential property for sale at strategic locations in demand
Why buy a property at a strategic location? Case study of Pune real estate market
As the real estate industry surges, there are various trends which are beneficial and are followed in various cities. One such city is Pune which has been witnessing a consistent growth in the real estate sector and is considered as one of the key cities for residential investment. The reason behind an increased number of residential investments is the healthy consumer demand along with good economic drivers. This has further resulted in the residential investments by producing good yields.
IT Sector Growth and the developments in the western regions
There is an increase in the rental property market because of the high migrant arrivals. The major cause for the increase in this part of real estate is the rapid growth of IT sectors and the developments in the western regions of the city. Apparently, the eastern region of the city is also slowly witnessing the change.
Other causes for an increased demand of the residential property are the current advancements of the automobile sector and the service industries. Residential property is in demand also because of an increased population which comprise of the migrated students from different parts of the country. Henceforth these reasons create a large scope for the demand of rental properties in the area.
Increase in rental
Since the central region of Pune has almost flourished its developmental prospective, now the boundaries of the city are being focused on and they are the driving regions in the city. Studies in the region have shown an increase in the rental prices. The Rental values of a 3BHK apartment in the up-market localities of the city have increased to 16% when compared to the previous rates. This shows that investing in a residential property in a strategic location with the purpose of renting it out is becoming an excellent investment proposition.
Further it is also seen that the rental market in Pune is very strong and the interest rate prices have gone up. This has created an increased possibility to many opting for a rented home. Although most of them prefer staying in a rented home, they still do not appreciate the soaring rental charges. Only people with deep pockets and where there is a higher demand than the supply are satisfactory with the rental prices. Apparently the eastern part of the city has seen more increase in the rental agreement when compared to the western part in which the supply of the residential property is higher.
Since last year the rent rates in areas like the Kalyani Nagar have gone up around 15%. This is because there is a lack of fresh rental projects and the gap between the demand and supply resulting in the increase of the rental value.
Demand for 1 bhk flat in Pune
Most people in the area demand for a 1 BHK homes this suits the budget. Due to an increased demand of a 1BHK home, there is a shortage of it. This is the good time to invest in the region and rent or lease the properties as the prices are increasingly shooting up and are predicted to shoot up even more in the upcoming years.
Maximum number of the people seeking for rented properties are from the IT sector. As mentioned earlier, there is a huge demand for a single room home and that there is a decrease in the rental properties and a hike in the prices.
One of the best areas in the city to invest is Kalyani Nagar as the return in terms of rent is higher. Adding on to this are the other major factors like the proximity to the airport, upcoming new malls and other retail sectors. Most of the home buyers buy properties in this area and give it out on rent for larger benefits.
For the higher society, areas like Koregaon Park and others are in great demand and owning to this there is an increase in the rental rates of the residential projects. This area is considered as one of the posh areas in the city. In order to balance the demand in the areas, there are many other projects which are coming up in the future. Apart from just the IT employees, many foreign nationals and industrialists with their base in the city demand for residential properties.
Henceforth, investment for residential properties in such developing cities will fetch you a larger amount as time goes by. Cities like Coimbatore, Chandigarh, Meerut, Gurgaon etc. are good investment destinations in India and are also attracting a good no of NRIs.
