In India, the increase in office space revival, job opportunities, and work-from-home culture contributed to the growing housing demand in 2022.
While many people in other cities returned to their hometowns during the lockdown, Pune saw a reverse migration. The city’s climate, vibrant job market, and education institutes are among the reasons why many people choose to live here. The real estate market in Pune has not only recovered, but recent reports indicate that housing is becoming a growing need in the city.
In 2022, Pune sold 85,000 units worth over 50,000 crores. Has the golden era begun?
Pune Times Mirror talks to Mr. Rahul Ajmera, a young real estate developer and IIT Bombay alumnus, about the booming real estate market in Pune.
It was a time of doomsday rhetoric and dismay around real estate when the Covid 19 pandemic hit in 2020. Several people said that work-from-home culture would destroy the real estate business. Nonetheless, real estate launches and sales reached an all-time high in 2022. What led to this?
Since real estate is a structural sector of the economy, it cannot collapse easily. The restriction during the pandemic lockdown made people realise that a 1 or 2BHK wasn't spacious enough for a family of four. People who returned to their hometowns eventually returned because they realised that Tier III and IV towns don't have the health and social infrastructure that Pune has. Therefore, Real Estate Developers reduced the supply of 1BHK units and increased the supply of 2.5 / 3 BHK units.
Why aren't prices falling in Pune if there's so much unsold inventory, as some real estate data analysts claim?
The amount of unsold inventory in a city is one of the most deceptive statistics because it sometimes includes figures from abandoned and poorly planned projects. Because real estate is a niche market, these statistics should have no influence on a home buyer. Pune is a bustling city with plenty of job opportunities and developable land, so unlike Mumbai, property prices are still affordable.
"When there's so much unsold inventory, why is it so hard to find ready-to-move-in homes in good projects? Supply and demand affect real estate values at the local level rather than the macro level. Depending on the surroundings, layout, and internal requirements of two projects, their pricing and unsold inventory in the same general area may be quite different."
Popular social media influencers often talk about the financial benefits of renting over buying a home. How will this affect the future outlook?
India has historically had poor rental yields, but this has had no impact on the real estate market.
"Although living in a rented flat and investing the difference in EMI payments in a mutual fund SIP seems appealing, how practical is it to do so for 10 to 15 years?" Most people eventually want a stable life, so they marry, have children, and buy a house."
What are the most important factors flat buyers should consider before making a decision?
Buying a home is usually one of the most exciting things in life. However, choosing the right home can be difficult with so much information available and so many people around to influence us. Contrary to popular belief, more people do thorough research before buying a car or mobile than before buying a home.
"Shouldn't they spend at least 15 to 20 days conducting the proper research before their home purchase, given that most homebuyers repay their mortgages over 15 to 20 years?" So, to help people make better home-buying decisions, we have created a fun-to-read Home Buyer's Guide."
Many buyers are unaware of important details due to the new trend of non-refundable Eol/Token-based Pre-launches and end up booking a property that may not suit their actual needs. A home buyer's focus is diverted towards the project's grand amenities, discounts/offers, and promises of future development.
"Also, buyers must find out about the exact location of the project, the developer's record and feedback from past customers, as well as the governing municipality."
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