Q: Approximately 25% of buyers in Pune are pure investors, they purchase properties only for the purpose of benefiting from rental income and capital appreciation.
The tertiary or services sector, which includes but is not limited to IT/ITeS, BPO, KPO, banking and retail services, accounts for roughly 55%. The services sector, particularly the IT/ITeS segment, drives the demand for homes in the more developed urban areas. These homes come to be in the price bracket of Rs. 50 lakh to 1.5 crore, and around 65% of the housing projects in Pune are currently targeted at this sector.
The secondary sector, consisting manufacturing industries such as automobiles, electronics and machine tools, accounts for about 40% of Punes economic activity. This sector is very influential on Punes real estate market, as it gives rise to the mass demand for mid-range homes priced between Rs. 30-40 lakh. The MIDC sector in the Pimpri-Chinchwad Municipal Corporation is the primary effective zone for such housing.
The primary sector, which is consisted of agriculture, or income generation based simply on agricultural land ownership, and other forms of base goods supply such as mining, accounts for only about 5%. This sector does not effect Punes real estate development pattern significantly, except in terms of low-cost housing in the rural and semi-urban areas.
Well Javed, Apart from the demand pattern, developers who are serving to the demand for homes in Pune also take their hint from the citys economic profile. If we look at Pune economic profile as it stands today, the city can be roughly stratified into the primary, secondary and tertiary sectors.
You are absolutely right Samrat, The reason for this high interest from Mumbai is that real estate investments in Pune show a much better growth than what is seen in the Mumbai, and many Mumbaikars are also intention on relocating to Pune. The remaining 10% of buyers for Pune real estate is consisted of NRIs living abroad who invest in Pune properties either for the use of their families or their own ultimate self-use upon return to India or as investments.
If we take a growing look at the geographic origins of both end users and investors, it turns out that 60% originate from Pune itself, while as much as 30% are from neighbouring Mumbai. Pune is a very attractive market for property buyers from Mumbai, both as investments and for personal use, as this city presents a very attractive counterpoint to the very expensive Mumbai real estate market.
Hi, Like any other citys Punes real estate development pattern is driven by its demand profile. Residential real estate demand in Pune is driven by two broad categories of buyers, namely end users and investors. Thoughts, which is the opportunistic buying and selling of real estate in short periods of time, is actively discouraged by Punes developer community. Long-term investors wait to stay invested for at least 5-6 years. The remaining 75% of buyers are the end users who purchase homes for their personal use.