Pune’s real estate market is currently in a state of transition, with a slowdown in sales but also unique opportunities for potential homebuyers. While there are concerns about increasing unsold inventory and falling property rates, a closer look reveals a more nuanced picture, particularly in the Pimpri-Chinchwad Municipal Corporation (PCMC) area.
Pune Real Estate Market Slowdown and Unsold Inventories
The market is experiencing a slowdown due to global uncertainties, such as the situation in the US and the rise of AI, which is causing people to worry about job security. This has led to a decrease in the number of people investing in real estate or buying homes for personal use compared to a year ago. However, Pune stands out as the only city in India that has sold the most real estate inventories. This is largely attributed to the influx of people from outside the city, drawn by Pune’s IT sector, environment, and welcoming culture.
Despite the overall slowdown, the idea that unsold inventories are rising is not entirely accurate for the PCMC zone. For the past 7-8 months, a scarcity of new inventory has existed in this area because new projects couldn’t be launched due to pending environmental clearances. This has created a pent-up demand among buyers who are waiting for new projects to become available.
The Impact of Environmental Clearances on PCMC Real Estate
A significant factor influencing the market has been the delay in environmental clearances in the PCMC area and its 5 km periphery. The good news is that these clearances have now started to be issued. However, the process still takes time, typically 3 to 6 months, and sometimes even up to 8-9 months, to be sanctioned after a developer applies. This means that while new projects are on the horizon, a significant increase in supply is still 6 to 8 months away.
This situation creates a buyer-oriented market where you have time to evaluate and compare properties. Unlike a year ago, when the fear of missing out (FOMO) drove rushed decisions, the current market allows you to make a more informed choice without the pressure of rising prices.
Will Pune Property Rates Fall?
While property rates may not see a sharp decline in the main PCMC area due to the existing scarcity and anticipated demand, there’s a possibility of finding discounts in fringe locations. Developers in these areas might be more willing to offer discounts or incentives like freebies and subvention schemes to attract buyers.
Developers will likely try to avoid lowering prices directly and will instead control the supply of new inventory by launching projects in a phased manner. As a buyer, you should take advantage of this by carefully comparing different projects, their layouts, pricing, and the developer’s track record.
Expert Advice for Pune Homebuyers
Do Your Research: The current market gives you the opportunity to do thorough research. Analyze different projects, compare prices, and visit the sites before making a decision.
Be Patient: Don’t rush into a purchase. Wait for the new projects to be sanctioned with environmental clearances to ensure a smooth buying process.
Verify Sanctions: Never invest in a project or a phase of a project that doesn’t have the necessary sanctions. Buying in an unsanctioned phase can lead to delays and financial risks.
Check Environmental Clearance: It’s important to note that developers may be able to register with MahaRERA and execute agreements with buyers even without environmental clearance. However, construction cannot begin without this clearance. As a buyer, it’s in your best interest to wait until the EC is received before proceeding.
