: Study
PUNE: Prices of houses in the city are on the rise. They have gone up 16 per cent in the first three months of the current year when compared to the corresponding period last fiscal. Reports indicate that the market has factored in the higher burden of interest on home loans.
According to a study by a real estate portal, property prices in Pune region have escalated, reflecting the overall sentiment of the sector. Localities like Baner, Hinjewadi and Kothrud have seen a maximum price appreciation with prices moving up by 30 %, 23 % and 22 % respectively in the first quarter of 2012 over the first quarter of 2011.
Most other localities saw a price rise between 13 % and 18 % while BT Kawade Road, Chinchwad, Kondhwa and Koregaon Park saw prices move up by 8 per cent in the first quarter of 2012.
The portal's business head Vineet Singh said, "Pune has been a preferred investment destination for several MNCs for decades owing to its vast pool of engineering and management talent. The influx of IT has lead to a high residential demand in and around Hinjewadi and Wakad. Professionals and students both look to this region for renting and buying."
Another study by a city-based developer had noted that the sellout ratio of projects has improved in the first six months of 2011 when compared to 2010. "A 78 % sellout indicates a full recovery of the cost of construction of the project. Therefore, barring a few stray cases of funds being diverted leading to cash flow distress, we believe that projects will not see a cash flow strain and therefore, the market does not indicate any levels of distress that would lead to further lowering of prices," the study had concluded.
Sanjay Bajaj, managing director for Pune at real estate advisory Jones Lang LaSalle India, told TOI, "There has been a 12-15 % rise in residential property prices at most locations in Pune. Increased input costs being incurred by developers and the continued health of demand from end users and investors. The latter factor brings with it an expected escalation in the process of price discovery."
The advisory said there is a healthy demand for residential realty in Pune and increasing investor interest has enhanced private equity investing in projects in the city. "Pune has been a favoured destination among real estate private equity funds since 2005, the year FDI opened for real estate. Most funds are based out of Mumbai, which gives Pune preference, as the city's proximity allows them to track and monitor the market and investments easily," the firm said.
The total flow of private equity funds to Pune until December 2011 was nearly US $ 800 million. This consisted of both foreign and domestic monies through around 32 major transactions over the last five years.
According to a study by a real estate portal, property prices in Pune region have escalated, reflecting the overall sentiment of the sector. Localities like Baner, Hinjewadi and Kothrud have seen a maximum price appreciation with prices moving up by 30 %, 23 % and 22 % respectively in the first quarter of 2012 over the first quarter of 2011.
Most other localities saw a price rise between 13 % and 18 % while BT Kawade Road, Chinchwad, Kondhwa and Koregaon Park saw prices move up by 8 per cent in the first quarter of 2012.
The portal's business head Vineet Singh said, "Pune has been a preferred investment destination for several MNCs for decades owing to its vast pool of engineering and management talent. The influx of IT has lead to a high residential demand in and around Hinjewadi and Wakad. Professionals and students both look to this region for renting and buying."
Another study by a city-based developer had noted that the sellout ratio of projects has improved in the first six months of 2011 when compared to 2010. "A 78 % sellout indicates a full recovery of the cost of construction of the project. Therefore, barring a few stray cases of funds being diverted leading to cash flow distress, we believe that projects will not see a cash flow strain and therefore, the market does not indicate any levels of distress that would lead to further lowering of prices," the study had concluded.
Sanjay Bajaj, managing director for Pune at real estate advisory Jones Lang LaSalle India, told TOI, "There has been a 12-15 % rise in residential property prices at most locations in Pune. Increased input costs being incurred by developers and the continued health of demand from end users and investors. The latter factor brings with it an expected escalation in the process of price discovery."
The advisory said there is a healthy demand for residential realty in Pune and increasing investor interest has enhanced private equity investing in projects in the city. "Pune has been a favoured destination among real estate private equity funds since 2005, the year FDI opened for real estate. Most funds are based out of Mumbai, which gives Pune preference, as the city's proximity allows them to track and monitor the market and investments easily," the firm said.
The total flow of private equity funds to Pune until December 2011 was nearly US $ 800 million. This consisted of both foreign and domestic monies through around 32 major transactions over the last five years.
Source:
timesofindia.indiatimes.com
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