Generally, residential property buyers in Pune are now concentrating on location, developer reputation, pricing, amenities and specifications as well as completion schedule. The weight age given to each or combinations of these priorities varies. However, the least level of flexibility is evident on the location and pricing fronts.
The demand for residential property in Pune continues to be massive in 2013, but this demand is driven throughout by intelligent decision-making. As a rule, most of Pune's home buyers know that they have options, how the market is currently behaving and how it is likely to behave in the foreseeable future. Pune was one of the best-performing markets in 2012, which was by all standards a challenging year for most cities. Given that the market drivers that made this happen are still very much in place, this trend will continue in 2013, as well.
The available inventory in 2013 is equivalent to almost 9 months’ stock, which indicates a very healthy absorption level in the city. In 2013, Pune will see stronger demand from IT / ITeS and manufacturing sector employees, Mumbai-based investors and NRI clients who are looking to invest in stable markets. Among the developers who will be launching residential projects in Pune during 2013 are Pushpganga Ventures, Marvel Realtors, ABIL, Kumar Properties, Goel Ganga Developments, Tejraj Developers, Urban Lifestyle and Goel Ganga Group.
COMMERCIAL REAL ESTATE
Outlook For 2013
Given the diversity of office space demand, which encompasses the IT/ ITeS, manufacturing, automobile and BFSI sectors, Pune will continue to account for healthy commercial real estate absorption in 2013. While office space demand across India saw a 16–18% dip in 2012, demand in Pune surged upward by 6%. This clearly signifies the confidence and intent that clients have shown towards the city.
The massive display of investor confidence seen in the city during 2012 will continue to be a driving force in 2013, as well. Jones Lang LaSalle is actively managing a large number of investment transactions coming from HNIs and institutional investors, who are trading enthusiastically in commercial assets because of the attractive valuations.
Office space rentals in the non-IT commercial property asset class are likely to stabilize after the second quarter of 2013, thanks to the influx of fresh stock - especially in the Eastern corridor. SEZ rentals in Hinjewadi are expected to remain stable, since considerable supply is slated to hit the market there in the second half of the year. On the other hand, rentals for commercial office spaces in STPI projects are expected to increase because of the limited supply of Grade A office spaces throughout the city.