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Rediff.com  » Business » Pune beats Mumbai, sees highest rise in property prices

Pune beats Mumbai, sees highest rise in property prices

Last updated on: August 27, 2014 09:34 IST

It seems property in Pune have a better rate of capital value appreciation than other metro cities.

According to a report Pune recorded the highest average appreciation in the high-end properties in the last three years (H1 2011 – H1 2014) and second highest appreciation rate in the mid-segment properties. 

According to real estate consultant Cushman & Wakefield in the high-end properties market, Pune recorded the highest increase in capital values of 39 per cent while Bengaluru recorded 37 per cent average increase in capital values in the period between 2011 and 2014.

The residential segment in Pune witnessed high levels of capital value growth in both the mid and high-end segments. 

With the city expanding at a rapid pace due to growing services and manufacturing sectors, activity in the residential segment also grew significantly.

Among other cities, Chennai market recorded an average increase of 34 per cent in capital values in the same period, while Mumbai and Delhi-NCR recorded identical average increase of 24 per cent. 

Hyderabad remained at the last on the table for average increase in capital values over 3 years.

The report analyses the performance of the residential segment across top seven cities to rank the average capital value appreciations across the cities. 

 

While all cities have seen capital values increase between 14 per cent - 41 per cent in mid segment, high- end properties recorded appreciation in the range of 16 per cent - 39 per cent in the same period.

 "Despite the disparity in levels of average appreciation in capital values in the past, it is heartening to see that against poorer economic sentiments, all markets have recorded capital appreciation. It is interesting to note that markets which are largely end user driven are also the ones to record highest average increases in capital values while investor driven markets such as Delhi-NCR and Mumbai have remained contained in appreciation received over the period," said Shveta Jain, Executive Director, Residential Services Cushman & Wakefield.

In the mid segment, Bengaluru recorded the highest average appreciation of 41 per cent in the period under consideration, followed by Pune which recorded an average appreciation of 28 per cent in the period 2011 - 2014. 

Chennai (27 per cent), Delhi-NCR (22 per cent) and Kolkata (17 per cent) also saw noteworthy increases. 

Mumbai which recorded an average capital values increase of 16 per cent finished the second lowest followed by Hyderabad which recorded an average capital values increase of 14 per cent. 

"Going forward, the demand for mid-end segment housing will be robust due to tax reforms in the recent budget and positive economic sentiment. However, due to the excess supply scenario in the mid-end segment an exponential growth in capital value is highly unlikely in the short term," said Jain.

In terms of city specific appreciation, East Pune witnessed capital value increase of 38 per cent in the mid segment and 65 per cent in the high-end segment since 2011, primarily due to continued demand from end-users.

Established locations in West Pune such as Deccan Gymkhana, Model Colony along with Aundh-Baner witnessed healthy capital value appreciation (since 2011) of 46 per cent and 41 per cent respectively in the high-end segment.
















BS Reporter in Pune