How much will property prices rise in Pune in 2018?
Though the property prices have received a setback in recent times, mostly due to the demonetization aspect, the real estate business is likely to speed up by the first quarter of 2018. As Pune is re-structured as one of the very few smart cities in India, along with the implementation of GST and RERA regulations, the real estate scenario in Pune has transformed completely in last few months. According to LivingArea a RealEstate Agency in Pune, who happens to be my client, the price of the average residential property is going to rise at a rate of 4% per annum approximately. You might consider discussing with a livingArea for a more detailed analysis as well as prediction of upcoming trends.
Why Invest in Pune? Now? – www. MoneyControl.com
Pune, the first smart city to raise municipal bonds worth Rs 200 crore after a gap of almost 14 years, is also gaining maturity as a real estate market. With demonetization, RERA and Goods and Services Tax (GST) transforming the real estate landscape, Pune’s property prices dropped by 4 percent and launches too, came down by almost 19 percent in June, ensuring that excess unsold inventory is soaked up.
Average residential property prices continued to decrease at an overall level bringing the drop in property prices to 4.01 percent year-on-year in June 2017, says Gera Pune Residential Realty Report for January-June 2017.
As part of the study, nearly 3,700 projects across the Pune Metropolitan Development Authority (PMRDA) Region were surveyed over the last two years.
The report said that there was a downward trend in property prices because the majority of new launches were in the small size segment that were priced lower. The current average price across the region was Rs 4,786 per sq ft.
Most of the decline has come in the past 6 months, and can be attributed to the twin effects of demonetisation and RERA. The average residential property prices decreased at an overall level from Rs 4, 900 per sq ft in December 2016 to Rs 4,786 per sq ft. in June 2017 — a price drop of 2.33% — bringing the total drop in property prices since June 2016 to 4.01%.
The decline in prices is more pronounced in new launches — new phases of existing projects were launched at an average price of Rs 4,510 per sq ft in the first half of 2017 compared to Rs 4,774 per sq ft in the second half of 2015, which is a drop of 5.5%, the report highlighted.
Affordability Increases by 30%
With the average prices declining on account of new inventory being launched at lower prices, in real terms, the affordability has in fact increased, says the report.
LivingArea says that the affordability has increased, hence this is the right time to purchase a property in Pune