When it comes to the Indian real estate market, Pune certainly emerges as a preferred choice amongst investors. In the last five years, the city has experienced immense growth due to ample employment opportunities in the IT and ITes sector. Demand for residential properties has considerably increased. However, implementation of certain regulatory and financial policies has, to some extent, dampened the growth of real estate in Pune.
RERA AND GST
In 2017, the government implemented the pro-market regulatory policy called Real Estate Regulatory Act (RERA) which identified and listed registered projects and developers. Then, a uniform taxation – the Goods and Services Tax (GST) – was also implemented. These twin policies came at the heels of demonetization which resulted in a slow growth of the Pune’s residential real estate sector.
In fact, many developers were faced with a large number of unsold residential units such as flats for sale in Keshav Nagar Pune and flats for sale in Market Yard Pune. Therefore, most developers today are focused on becoming RERA-compliant and selling their unsold units rather than launching new projects.
FORCES DRIVING PUNE REAL ESTATE MARKET’S GROWTH
However, Pune has fared much better in the Indian real estate market than any other city in India because of several reasons. They are:
Rising demand for affordable housing has led investors to buy flats for sale in Keshav Nagar Pune, flats for sale in Market Yard Pune and apartments for sale in Wagholi.
Thanks to an increase in job opportunities in the information technology, automobile, manufacturing and engineering sector, many families and young professionals are seeking apartments for rent. Rental rates have gone up especially in Hinjewadi, Undri-Pisoli, Hadapsar, Kharadi, and Wagholi because of its close proximity to IT hubs.
Besides IT and other sectors, Pune also attracts young adults due to its internationally and nationally recognized educational institutions. This further feeds into the demand of residential properties and rise of rental rates.
The launch of proposed projects such as the Pune Metro, the New International Airport and the Pune River Front Development Project is set to add to the demand of flats for sale in Keshav Nagar Pune andflats for sale in Market Yard Pune.
Additionally, the completion of Ring Road will ensure that the periphery and fringes of Pune are well-connected to the main city.
Pune’s central business district that houses flats for sale in Keshav Nagar Pune andflats for sale in Market Yard Pune, is predicted to increase in demand both for buying apartments and renting them. Although most buyers are still cautious while purchasing flats for sale in Market Yard Pune or Wagholi, the future of Pune’s real estate market is definitely looking good.