Pune is a city not famous for historical incidents and monuments only, but also know for its development and industries spread in different industrial areas of the city. Hence the real estate sector of the city also sees some surges over a period as far as the prices are concerned.
The Pune real estate market has recorded a fall of 64% in its new project launches during demonetization period. It was a period when all the property developers only concentrated on their ongoing projects. New projects were not an option to think about during the October to December span of 2016. The recovery from a 64% fall is not yet completely over. The first half of 2017 and the second half as well has not yet seen any new property project launch in Pune. The real estate market will remain in this state until the first quarter of 2018, as predicted by real estate consultants. Due to demonetization, all cash transactions were ceased, and the market went void for that span. The real estate sale was stopped for almost 4 to 5 months as cash flow was barred. Though it didn’t affect the property prices, investors had to suffer due to demonetization. A report on property price trend shows that real estate prices were adjusted by 1.69% in the first quarter of 2017 in Pune.
The sales in Pune region which is controlled by Pune Metropolitan Regulatory Development Authority (PMRDA) recorded the lowest sale units of 6300 units. The execution of Real Estate Regulatory Act (RERA) had tempered the developers and resulted in the launch of 3400 units in this year which is pretty low. With the falling demand for property, the supplies have fallen too. Even though property prices are constant, developers are not keen enough to start-off with new projects. Predictions on the real estate market state that demand for a property may fall in the upcoming quarter of 2018. The geographical extent of Pune shows an estimated unsold inventory of 49725 to 104450 units.
The real estate market of Pune will bounce back to the stable position by mid-2018. New projects will be launched, and developers will have a growth in their revenue rate. Small developers might face a problem with their ongoing or under-construction projects, but they will also gain stability by next year. There is no doubt that Pune real estate market will regain its pace but demand may vary for properties until the end of 2018.
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