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MUMBAI: Capital values on Pune, India residential market is expected to appreciate by another 3% to 4% by end of the year. following an appreciation of 4% to 6% in 1H2011, according to Jones Lang LaSalle India's (JLL India) latest Pune Residential Property Market Update.
The primary catalyst for Pune are the Informational Technology and Information Technology-Enabled Services (IT/ITeS) sectors, as well as the manufacturing sector.
Because of the migratory employees, growth of rental values is expected to overtake that of capital values, which makes buying to rent an excellent investment proposition.
"The configurations of one, two, and two and a half BHKs (bedroom, hall and kitchen) enjoy the highest demand," said Sanjay Bajaj, managing director of Pune, JLL India.
Pune's secondary and suburban markets have shown the highest growth potential as development potential in the central parts of the city has more or less been exhausted.
Most of the newly-launched residential projects are on the north-western and south-eastern side where the majority of IT/ITeS bases are located. Some of the areas are Baner, Aundh, Balewadi, Hadapsar, Kharadi and Nagar Road.
Even though the growth capital values cannot be compared to neighbouring Mumbai, Pune has the advantages of being a stable market with consistent demand coming from a number of strong and dependable business sectors.
Due to the increasing property prices and the relentless rise in home loan interest, outright purchase currently seems less attractive to many buyers.
With the addition of more access roads, improving quality of projects and the launches of a number of malls in the eastern and western pats of Pune, Sanjay believed the Pune residential market can look forward to healthier growth in the future.
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