Residential Property in Pune
“Owning a home is a keystone of wealth — both financial affluence and emotional security.” — Suze Orman
Owning your first home — our own shelter is so important in life. It adds to emotional security.
During Covid, home loans were reduced to as low as 6.5%, which was quite attractive, and moreover the stamp duty reduction was an extra bonus. This boosted the residential sector.
Within one crore ticket size in the residential sector were actual buyers (end users) looking to move into their apartment. Some usually book at an early stage so they get a payment plan, while some who are ready book at a near-completion stage, ready to move in. Post due-diligence and after getting a good deal and payment plans, if one has booked early in a project then surely you can expect a good deal, as rates do go up during completion.
Buyers could look at expanding from their existing 2 to 2.5 to 3.5 BHK. Some could be tenants looking at their own first home, with an additional room for work from home. Higher ticket size in residential is mostly for actual users. Residential areas in Pune for IT professionals are spread out across the city.
Some of the areas that buyers are interested in include:
- West Pune: Baner, Aundh, Hinjewadi, Punawale, Wakad, Tathawade, Kiwale, Ravet — buyers mainly from IT/ITeS and the manufacturing sector.
- North-Western: Pimpri-Chinchwad
- West-Central: Kothrud
- South Pune: Wanowrie, Undri
- East Pune: Koregaon Park, Mundhwa, Kalyani Nagar, Boat Club Road, Viman Nagar, Kharadi
Real estate as an investment
As an investor, one should understand that investing in a residential flat in any city or area where there is infrastructure spend, mixed development around, and the potential of jobs, means you will be able to rent your house even though the return on investment (ROI) may be 2% odd. Consult realtors and look at capital appreciation over time. This is for investing in a second home.
While one is physically fit and in a good job with a paid-up first home, you could try to get a second home if you are comfortable with the EMI without much stretching. Rental income received could help supplement the EMI payment. What you create is a valuable capital asset.
Working professionals must try to invest in a small accommodation under construction with much due diligence. In India, I have observed that any disruption — for example Covid — did not correct real estate prices; they remained stagnant. Unsold inventory, if any, can get you a good deal. Rather than waiting for corrections, get a good realtor who can help you with due diligence and get you the best deal and payment terms.
Our population is our strength. Internal consumption and disposable income are great. There are stages in life for every individual. Having done well in life and invested in equities, one should think of real estate and keep track of upcoming residential projects in Pune. Spread the risk — invest in various asset classes, not all eggs in one. The idea is to beat inflation.
Pune West — a closer look
Talawade and Hinjewadi (both IT): Connectivity to Hinjewadi is better in PCMC. The Bangalore-Mumbai expressway is a major infrastructure boost in the west. Many developers opted for projects under the 80IB(10) act — 0% tax from project earnings if certain norms are satisfied. These are for end users, not for investment by various family members. Starting ticket size around ₹45 lakhs.
Punawale (indicative):
- 2 BHK: ₹45–70 lakhs · carpet 575–850 sq ft
- 2.5 BHK: ₹65–75 lakhs · carpet ~725 sq ft
- 3 BHK: ₹80 lakhs+ · carpet 800 sq ft+
Disclaimer: These are my opinions and views. My advice to you is to do your own due diligence.