Real Estate - Mumbai's loss is Pune's gain??

25-Aug-2014    |    Source:    TImes Of India

Of late, property buyers, especially investors, are showing keen interest in Pune real estate market. Thanks to the Mumbai-Pune Expressway which has greatly reduced the distance between the two cities.  The Housing Sentiment Index (HSI) Report on buyers’ sentiments has also been consistently positive over the last two quarters.


While, HSI in Pune rose by 3 per cent in the Apr-Jun 2014 quarter when compared to an increase of 9 per cent in the previous quarter, HSI in Mumbai rose by a mere 1 per cent in the same quarter when compared to a rise of 24 per cent in the Jan-Mar 2014 quarter.


“Investors from Mumbai are investing or making second property purchases in localities near the Mumbai–Pune Expressway,” says Vinod Joshi of Horizons Consultancy. Localities seeing high interest are Talegaon, Dabhade, Wakad, Ravet, Wagholi, Dhanori, Ambegaon and Hadapsar among others.


What makes these localities the investors choice, lets’ find out?


Consistent growth

Despite the political uncertainty, Pune real estate market remained positive in the last six months. Whereas, Mumbai market has been volatile and seen ups and downs, as per PropIndex reports over the last six months.

In addition Sanjay Bajaj, managing director – Pune, JLL India says, “Despite the overall slowdown in the sector, the property market in Pune maintained a steady momentum that tends to define stable real estate markets”.

In terms of initial investment, the scope of appreciation is high in Pune than in Mumbai. This is because there are a few takers of property that require high investment than for properties which ask for low price investment. The more the gap between demand and supply, the faster it will appreciate.

The major reason quoted is the opportunities generated by the IT/ITeS, automobile and manufacturing sectors which have ensured a steady stream of demand. “Various industries are paying almost at par to what one can get in Mumbai job market,” says Nikhil Jain of Ridhi Sidhi.


Expensive Mumbai

Mumbai property prices are way higher than what is being offered in Pune currently. One has to have a minimum corpus of Rs 1 crore to buy even a small apartment of 600 sq ft in the main city or have to move towards the fringes of Mumbai, Thane or Navi Mumbai for low-value investments. However, in Pune, there are a variety of options available within Rs 30 lakh to Rs 1 crore and above across the city.


Easy lifestyle

For Mumbaikers, looking for a home away from home, Pune has emerged as a preferred choice. Despite of not being a metro, the city offers a cosmopolitan approach and yet is affordable when it comes to living. “Known to be the educational and IT hub, Pune offers friendly and easy lifestyle away from the hustle bustle of Mumbai,” says Jain. “The cost of living in Pune is about 10-20 per cent cheaper when compared to Mumbai,” he adds.

Lately, celebrities too have considered Pune as a potential investment destination. Proximity to Mumbai and the growth of real estate market here has attracted them to the area. Apart from this, Mumbai’s chaotic life is pushing them to invest in Pune.


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