Somewhat lukewarm demand and a little low buyer sentiment have led to an increase in unsold inventory in Pune. PropIndex (Jul-Sep 2014), the India Apartment Index report on 11 cities by Magicbricks, shows there is enough supply in the entire market.
Data shows that while supply of apartments was inclined towards properties priced at Rs 60 lakh to Rs 1 crore, buyers demanded properties mainly within Rs 40 lakh-Rs 60 lakh, showing a clear mismatch between demand and supply. This indicates the availability of existing and unsold stock within this budget range in Pune.
Gaurav Jain of city-based Purple Realtors says, “There is a mismatch between the prices of new construction and the budget buyers are looking at. This is the main reason for the mismatch. The developers are building new projects in different categories whereas the buyers demand is for a different category.“
In Pune, the city of young professionals, demand for properties within the budget range of Rs 40 lakh-Rs 60 lakh is high. However, with construction costs going up, developers find the upper midsegment and high-end properties more profitable, resulting in an over-supply today.
Stating another reason, the Gera Pune Residential Realty report informs, “The units are not being absorbed at the same velocity as they are being constructed, resulting in increased stock in the city.“
WHERE IS THE STOCK?
As per Magicbricks data, the top ten localities with maximum supply of apartments are Kharadi, Baner, Wakad, Wagholi, Hadapsar, Balewadi, Viman Nagar, Magarpatta and Hinjewadi. You can find varied range of 2 and 3BHK units in these areas.Most of these units are priced at Rs 60 lakh and above.
WHERE ARE THE TAKERS?
The Housing Sentiment Index (HSI), a joint report by Magicbricks and IIM-B, shows that during the Jul-Sep 2014 quarter, 47 per cent respondents were positive about Pune real estate market and want to buy within the next six months. It is this positive vibe that experts think will translate into increase in the absorption rate of the oversupplied category. Going forward, it is hoped that the segment looking within the budget of Rs 40 lakh -Rs 60 lakh will extend its budget to buy in the over-supplied `Above Rs 60 lakh' category.
WHERE TO LOOK?
Most buyers look for properties in the East and West Pune. As per a survey by Magicbricks, while in the West they look for properties in Aundh, Balewadi, Baner and Baner Pashan Road, in the East localities such as Wagholi, Hadapsar Kharadi and Viman Nagar are pre ferred for property investment. It is evident that the over-supply unsold inventories are piling up in the Pune residential market. With a little stretch, buyers can look forward to a range of options that are big ger in several areas and perhaps even get lucky with a bargain or a discount.
THE UNITS ARE NOT BEING ABSORBED AT THE SAME VELOCITY AS THEY ARE BEING CONSTRUCTED RESULTING IN THE INCREASED STOCK TOP TEN LOCALITIES WITH MAXIMUM SUPPLY OF APARTMENTS ARE KHARADI, BANER, WAKAD, WAGHOLI, HADAPSAR, BALEWADI, VIMAN NAGAR, MAGARPATTA AND HINJEWADI A REPORT SAYS DURING THE JULSEP 2014 QUARTER, 47 PER CENT RESPONDENTS WERE POSITIVE AND WANT TO BUY WITHIN THE NEXT SIX MONTHS.
Times Property, Pg no. 6
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