Moving from the traditional tag of retirement destination, Pune has seen huge real estate development over the last two decades primarily to cater to the ever increasing inwards students flow and also to the growing IT/ITES industry.
Recognized as one of the leading developers in the luxury and the premium segment, Supreme Universal has developed iconic residential and commercial spaces across Mumbai and Pune.
Team NewsBarons spoke with Vishal Jumani, Director at Supreme Universal about the growing concept of student housing and the real estate scenario in Pune.
NB: Has the residential demand in Pune seen any momentum post the demonetisation impact and the declining of home loan rates?
Vishal: Markets had been quiet slow most of last year and during the demonitisation period it only got worse. Post that there definitely has been some momentum and especially in the month of March 2017 which has been good with the sentiments improving and with expectations that interest rates going to further come down.
Home buyers have also realised that prices are not really coming down, though certain projects are offering some attractive payment terms for buyers to make the purchase.
NB: As per reports, there has hardly been any price correction in Pune RE market?
Vishal: The markets have been sluggish in the last couple of years; there has been some sort of a time correction especially in the luxury segment
Inspite of that we havent really seen prices going down, even the buyer has realised that there is no scope for prices to come down. There always has been some momentum in the LIG & MIG segment , we havent seen too many large project launches in the last couple of years due to which there is not much of fresh supply in the market.
With improved sentiments and interest rates coming down I only see the markets moving northwards.
NB: Do you see growth in the Students Housing segment?
Vishal: There is tremendous potential in student housing which till today is a much unorganised segment. Majority of the supply available lacks quality and good infrastructure .
There are millions of students who migrate to cities like Pune, Bengaluru & Chennai to study creating a huge demand.
It is a great opportunity for investors as an alternate real estate investment and with Bank FD interest rates which are only coming down, investors may want to start looking for more options and this segment is something to watch out for.
NB: Has the demand for commercial space increased in the last few quarters in Pune and nearby areas?
Vishal: There is a huge demand for commercial office space unfortunately there is a major shortfall of supply available in this space & it is going to remain tight until the end of the next year till some fresh supply which is currently under construction hits the market. Because of the short supply we have seen rentals going up by 7%-10% annually even in Grade B and some very average buildings
NB: What do you think will be the impact of Transit Oriented Development (TOD) policy in Pune?
Vishal: there will a great increase in density in the area of the transit station.
If successful, the prices might go up in theses area. But we are yet not very sure of how the Development authorities would plan to have enough of social infrastructure and schools for residents since it is going to be a densed development.
The development which is currently on the outskirts would become much slower since everyone would prefer to be in & around TOD.
NB: You are recognized as one of the foremost luxury home developers in Pune. How has the Luxury Home segment in Pune faring in comparison to Mumbai?
Vishal: Luxury segment which was quiet sluggish last year has seen some momentum in the last couple of months in Pune.
Unlike Mumbai, we observe this segment sees more traction only once the project is nearing completion or has been completed.
In Mumbai a developer can command a 5%-10% premium pricing over his competitor in his neighbourhood whereas Pune buyer is very price sensitive and cannot digest so much differebce between two different developers in the same vicinity.
Mumbai is an international market and everyone wants to own some piece of luxury real estate across the world in mumbai because of which prices move up very quickly, unlike Pune where most of the buyers are service class and there is always a restriction in prices to increase fast.