Press Release

Property Prices in Pune remain stagnantin Jan-Mar 2015over Oct-Dec 2014: 99acres Insite Report

June 1 2015

Major Highlights:

  • Similar to several other cities, Pune too saw a record number of unsold units in the market.
  • New residential launches ped by over 30% between Oct-Dec 2014 and Jan-Mar 2015.
  • Availability of affordable properties and presence of IT industry in the suburbs kept the realty market intact despite low sale volumes.
  • Manjri witnessed maximum price appreciation of 9% this quarter.
  • Pune&rsquos rental market recorded an 8% average growth in the last one year.

 

Pune, 28 June, 2015: 99acres.com Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. According to the report, property prices in Pune remained stagnant witnessing agrowth of 1%in Jan-Mar 2015 as compared to Oct-Dec 2014. The rental valuestoo witnessed a hike of 8% in the last one year (Jan-Mar 2015 over Jan-Mar 2014). Mid-sized housing units configured as 2BHK continued to be the most supplied in the city. The total number of properties available for sale in the city went up by 10% in the current quarter as compared to 18% in Oct-Dec 2014.

Commenting on the report, MrNarasimhaJayakumar, Chief Business Officer, 99acres.com,said, &ldquoDriven majorly by the IT industry, the realty market in Pune this quarter witnessed humble growth in capital values. Housing demand in the city is shifting from prime residential areas like Prabhat Road, Koregaon Park and Deccan Gymkhana to suburban belts such as Hinjewadi, Dhayari and Katraj.&rdquo
Price Trend Analysis (Jan-Mar 2015 vs.Oct-Dec 2014):

  • Manjriwas the frontrunner with maximum price appreciation of 9% this quarter. Proximity to IT hubs and comparative affordability to Hadapsar and Kharadi were seen as major growth stimulators.
  • Positive buyer sentiments owing to well-developed social infrastructure and connectivity pushed property prices on Bibwewadi-Kondhwa Road, Katraj-Kondhwa Road and Pimple Nilakh by six to 8%.
  • Handewadi, a newly emerging residential pocket in East Pune, recorded a growth of 6% in this quarter due to a huge demand for affordable properties.
  • Hinjewadi recorded a 3% growth in capital values and 10% in rentals due to the presence of IT industries, infrastructural developments and growing buyer interest.
  • Pisoli and Lulla Nagar recorded a dip in property prices to the tune of five and 10%, respectively. Poor social infrastructure can be attributed to this in capital prices.
  • Mundhawa lost its buyers to the comparatively affordable Manjri, thereby recording a 7% decline.

Rental Analysis (Jan-Mar 2015 vs. Jan-Mar 2015):

  • Rental values in Hinjewadi appreciated by 10% in the last one quarter owing to the huge demand for rented accommodation from migrants working in the city.
  • Hadapsarsaw rental values rising by 20%due to its proximity to IT hubs Magarpatta and Kharadi.
  • Due to affordable rental options, considerable rental demand shifted to areas such as Dhanori, Pimple Saudagar and Wakad. Rental rates in these areas went up by 15-17% in one year.

Supply Analysis(Jan-Mar 2015 vs. Oct-Dec 2014):

  • Availability of Different Property Types- Residential apartments continued to be the most supplied category, across the city. It made up 94% of the entire inventory, leaving limited scope for other property types.
  • Availability of Property by Budget- High-income housing category (Rs60 lakh-1 crore) made up more than one-third of the market share, followed by the affordable housing (up to Rs 40 lakh). The luxury and mid-income housing categories made up 16% and 21%shares, respectively.
  • Ready to Move vs. Under-construction- New project deliveries led to an increase in share of ready-to-move-in properties in the city by 4% in the last one quarter. Supply of under-construction properties ped to 36% this quarter, from 40%, indicating fewer new launches in Pune in this quarter.
  • BHK-wise Distribution of Property- Mid-sized homes configured as 2BHK units continued to record maximum demand, hence supply. Similar to the previous quarter, it made up close to half of the total market share (46% supply).

About 99acres.com:
Launched by Info Edge India Ltd. in September 2005, 99acres.com is a gateway to the one of the fastest growing property markets of the world, an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 8.5 million visitors visiting the website every month looking for real estate solutions, 99acres.com over 8 lakh residential and commercial property listings and over 90,000 new projects. Not only this, it has the highest traffic share, time spent on site and maximum page views, making it the most popular real estate portal in the country. Backed by a strong team and a network across 40 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.
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