Pune: Inquiries for Rental Property surges between Q4 2013 and Q3 2014
Pune is one of the most prominent and fast growing residential realty markets for Rental property among major Tier II cities in India. The Rental demand has gained in proportion in recent years due to the steady growth in the number of migrants. This fact was reinforced by the number of inquiries generated for Rental property (particularly for apartments) in Pune through CommonFloor. This is based on data generated by CommonFloor between Q4 2013 and Q3 2014.
Source: CommonFloor.com
Figure 1 shows the change in proportion of inquiries for Rental property between Q1 2014 and Q3 2014, compared to Q4 2013. Rental demand in Q4 2013 is taken as the ‘base’. The proportion of inquiries in Rental property in subsequent quarters is compared to this ‘base’.
Analysis of trend
Based on the findings, it can be inferred that the steady surge in the number of inquiries for Rental property (primarily apartments) can be attributed to the availability of Rental property at affordable rentals. Moreover, it also indicates the increase in the proportion of Rental accommodation available across the city. Besides, it also leads us to the fact that the number of investors investing in Rental property has also increased considerably.
Source: CommonFloor.com
Figure 2 shows the proportion of inquiries for Rental property in Pune between Q4 2013 and Q3 2014. The proportion has increased from 26.1 per cent in Q4 2013 to 44.5 per cent in Q3 2013.
Analysis of trend
Based on this trend, we can arrive at certain substantial conclusions with regards to the Rental residential market of the city. It can be inferred that Rental property across the city has become more affordable leading to an increase in its demand. Moreover, the increase in demand is also an added incentive for investors looking at investing in Rental property in the city. However, from the point of view of tenants, it is imperative that affordable Rental options are available across the city. At the same time investors should also get their money’s worth. This calls for a balance between the demand and supply for Rental accommodation in Pune.
