Rental Market Driving Pune's Residential Real Estate
The residential market in Pune is in a slowdown phase. With fewer transactions happening and values holding, the real estate action has shifted to the rental front.
By: George Gonigal
According to broker Raju Punjabi, Astitva Real-estates,"
Pune's rental market is particularly active in prime areas such as Koregaon Park and suburban areas of Kalyani Nagar, Viman Nagar, Aundh, Baner and the upcoming Kharadi.
A 2BHK apartment is the maximum transacted residential property in Pune and is currently fetching a monthly rental of Rs 15,000 in posh localities such as Koregaon Park and Kalyani Nagar. Kalyani Nagar due to its well laid out social infrastructure, good ambience and quality of life is in great demand by IT professionals. If however the accommodation is semi/fully furnished the value goes up till Rs 20,000 per month. In Kharadi which is an upcoming suburb of Pune, the monthly rental of a 2BHK is Rs 8-10,000 while in Viman Nagar, it is Rs 12,000.
Demand for rental accommodation emanates mainly from the IT sector and other working professionals. A lot of students also take up apartments on sharing basis especially in areas such as Viman Nagar which is home to many colleges and institutes. Besides, foreigners and NRIs are is an important segment in tenants, due to the influx of many IT companies and therefore expatriates.
The trend is more towards unfurnished apartments although the demand is for semi-furnished ones with at least cupboards and kitchens. The rental tenure is typically for 11 months, after which values are revised by 8-10 per cent based on market conditions.
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