Luxury Housing Sees Demand in Pune
The IT and software industry has significantly impacted the economy of Pune. Employment opportunities and pay scales have increased substantially and there are more people with high disposable income than before. . As a result, there is a growth in demand for luxury housing in the city.
Growth in demand
Pune sees maximum launches in the luxury segment with more and more premium homes being launched regularly. Larger apartments with more amenities in prime locations and city-centric locations sell at higher prices. Interestingly, prices for larger homes have increased at a greater rate than that of smaller homes. This signifies demand for premium homes. Pune is also witnessing a gradual shift of demand from 2 BHK to 3 and 4 BHK housing units.
Factors supporting the luxury segment
The demand for luxury housing in Pune is sustainable. An increasing number of firms are recognizing the advantages of the city which include cheaper real estate, trained manpower and low logistical problems. This has resulted in more high-paying jobs being created every year, leading to a growth in demand for high-end homes.
The kind of people who show interest in these homes is another factor. Luxury sector in Pune is largely driven by the end-users. These homes do not witness much demand from investors as they look at acquiring mid-range flats which they can dispose faster. There are several end-users who have the traditional belief of owning a house. Moreover, the depreciating rupee value in recent past has also favoured the luxury segment. It was during this time that more NRIs invested in India. These factors have supported developers to continue launching luxury projects.
Property trends in Pune
When one compares property prices in Pune with those of Mumbai, the former beats the latter in affordability. Average market rates across all micro markets in Pune, put together for luxury purchasing, start at Rs. 4,450 per sq.ft. Areas such as Karve Road, Bakori and Vishrantwadi have been witnessing the highest price appreciation. Wagholi, with about 3,700 units and Chakan, with about 3,240 units are the top two areas with maximum new supply of luxury housing.
