Rising demand sends property prices up in the city
The rate of properties per square feet (psf) has seen a rise in the city with the sale of properties picking up.
According to Mohammed Aslam, the Pune head of property consultant Jones Lang LaSalle Meghraj, builders have increased the prices by 10 to 15% for most of their projects, both ongoing and the new ones, with sales picking up before Diwali.
"For example, properties in Wakad which were sold below Rs3,000 psf a couple of months ago are now being sold at Rs3,300 and above," Aslam said, explain- ing that a similar increase in the property prices has also been witnessed in other localities of the city
Mont Vert Homes, which had announced flats for Rs22 lakh under a 'rent now and own later' scheme in Wakad, has increased the price for the same offerings recently. "We had reduced the price to Rs2,500 psf when property sales touched rock bottom due to the recession. The same properties are now being sold between Rs2,700 and 2,800 psf," said Mont Vert Homes MD Manish Kaneria, attributing the hike to the rise in sales and confirmed bookings.
"What has happened now is a fair market valuation and not a sudden abnormal rise," said Ravi Verma, the president of National Association of Realtors. "Flats admeasuring 1,100-1,250 sq ft, which are normally priced between Rs35 lakh and Rs45 lakh, were being sold at almost 15% less a few months ago."
“This sector suffered the worst during slowdown as prices remained a major issue for the clientele. However, buyers are once again back to the market with the economy reviving," said Satish Magar, the president of Credai Pune, adding that property prices in Pune would see a further rise by the first quarter of next year.
In fact, a survey carried out by makaan.com from October 1 to 12 across eight cities in the country showed that about 33% builders in Pune are anticipating a price hike of 10% and above in the coming few months.
Credai vice-president Rohit Gera, who is also the executive director of Gera Developers, admitted that prices of the "unsold stock" have seen an increase.
Gera said that although property prices had fallen, there wasn't any reduction in the land prices. "This is the reason why prices are once again rising with the demand for properties coming in," he said.