Prices of Flats in Pune Heading Towards Correction?
Whenever we hear about correction, market changes from a sellers' market to a buyers' market. Demand for property goes down and property prices may decline.
So, are we heading towards a correction in Pune's Real Estate Market?
NOT REALLY!, Say Experts.
Here are the reasons why prices of flats in Pune may not see a major price correction:
The real estate price in Pune may not witness a crash since there are innumerable factors which have supported its growth. The primary factor being the population size and the need for housing. Rest of Maharashtra seems to be migrating like never before to bigger cities and Pune has been an obvious choice for its Cosmo cultures, education, industrial expanse and business opportunities.
Currently there looks to be a mismatch between the supply and demand so we may see a rationalization of prices in certain micro markets and location. However, this may not be the case across Pune.
Secondly, if one has a closer look at Pune - both as a city and as a property market. Pune's overall fortunes are generated by three industries - manufacturing, Medical/Healthcare and Information Technology. The fact is that Pune scores higher than many of the larger cities when it comes to popularity as a destination for jobs in information technology, industry and as well obtaining opportunities in healthcare and medical segment.
All the people working in these segments - from the blue collar to white collared employees or right up to senior management - are all either buying or renting our flats in Pune in varying price ranges. The transient component of these employees (employees who aren't not from Pune, so will not opt to take up permanent apartment here) are a constant source of rental income for investors with properties in the right locations of the city.
Because of this continuous and stable demand for residential apartments and flats in Pune, there is hardly any scope of a property market correction. In fact, there has been an year on year price increase of 6-10% in various locations. Harsh Reality, this may be but then there seems to be a little scope for price corrections to buyers of flats in Pune.
In such a marketplace location, Pune will keep on to be one of the safest and most worthwhile savings avenues for a long time to move toward. With stable and progressively growing demand for residential in Pune, there is no probability of a property market correction.
So, are we heading towards a correction in Pune's Real Estate Market?
NOT REALLY!, Say Experts.
Here are the reasons why prices of flats in Pune may not see a major price correction:
The real estate price in Pune may not witness a crash since there are innumerable factors which have supported its growth. The primary factor being the population size and the need for housing. Rest of Maharashtra seems to be migrating like never before to bigger cities and Pune has been an obvious choice for its Cosmo cultures, education, industrial expanse and business opportunities.
Currently there looks to be a mismatch between the supply and demand so we may see a rationalization of prices in certain micro markets and location. However, this may not be the case across Pune.
Secondly, if one has a closer look at Pune - both as a city and as a property market. Pune's overall fortunes are generated by three industries - manufacturing, Medical/Healthcare and Information Technology. The fact is that Pune scores higher than many of the larger cities when it comes to popularity as a destination for jobs in information technology, industry and as well obtaining opportunities in healthcare and medical segment.
All the people working in these segments - from the blue collar to white collared employees or right up to senior management - are all either buying or renting our flats in Pune in varying price ranges. The transient component of these employees (employees who aren't not from Pune, so will not opt to take up permanent apartment here) are a constant source of rental income for investors with properties in the right locations of the city.
Because of this continuous and stable demand for residential apartments and flats in Pune, there is hardly any scope of a property market correction. In fact, there has been an year on year price increase of 6-10% in various locations. Harsh Reality, this may be but then there seems to be a little scope for price corrections to buyers of flats in Pune.
In such a marketplace location, Pune will keep on to be one of the safest and most worthwhile savings avenues for a long time to move toward. With stable and progressively growing demand for residential in Pune, there is no probability of a property market correction.
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