Luxury residential projects in Pune show steady growth

The IT industry has redefined the Pune real estate market like never before. It has given rise to a new segment of homebuyers with evolved tastes and high purchasing power. Due to the increased demand for luxury apartments and bungalows, property developers are introducing new residential projects in Pune.

The luxury property market constitutes 2-3% of the total residential market in Pune. Priced at Rs 4 crore or more, there are several ultra-luxury projects currently under construction in the city. The trend of moving from bungalows to luxury apartments and penthouses has become popular. Real estate developers are introducing exciting new projects, offering spacious, luxurious homes with world-class amenities.

The growth of luxury properties in the city has been steady despite the slowdown in the Indian property market. Pune along with Bangalore and Hyderabad has been witnessing an upward trend in the luxury housing sector.

Who is buying luxury real estate?

Not only top executives and high level businessmen but also Bollywood celebrities also prefer to buy a luxurious penthouse or bungalow in Pune for investment purposes. Many wealthy investors from Delhi, Bangalore and Mumbai choose Pune to invest in luxury property due to various factors including proximity to Mumbai and year-round pleasant climate.

Despite the challenging real estate environment in India, the Pune residential property market has managed to maintain its momentum. It continues to be one of the best performing real estate markets in India. Sales may have slowed down in recent years, but they have managed to remain healthy enough to maintain the viability of Pune’s real estate sector. This is one of the main reasons why developers continue to launch new projects in the city in both the affordable and luxury segments.

Where to find luxury projects?

Some of the best luxury properties in the city can be found in Koregaon Park, Boat Club Road, Sopan Baug, Kalyani Nagar, Salisbury Park, Prabhat Road, Model Colony, Aundh-Baner corridor and Bhosale Nagar.

In 2013, luxury property rates in the city ranged from 12,000 to 20,000 per square foot. Typically, these luxurious homes start at 3,000 square feet and can even go as high as 7,000 square feet. Although this market is still evolving in terms of specifications and technical aspects, buyers can get large houses for the same cost as a small apartment in cities like Mumbai, Delhi and Bangalore.

Rates for luxury properties vary by location. For example, most of the popular areas of the city have peaked, so developers are exploring areas on the outskirts of Pune. Rates for high-end properties in popular areas of the city have been stagnant for the past two to three years.

Price correction for Pune luxury properties?

Considering the sustained viability, the Pune luxury market will not see any price correction in the near future. According to industry experts, this market will continue to be one of the largest contributors of luxury projects across India.