Pune guys at work, even freshers, are all seriously looking at buying property. The dreams are bigger and the spaces to house those dreams have expanded. I am in a state of disbelief, when developers (of code) call the developers and ask for rates for 3BHKs.
Well, no problem with that, except people are thinking of buying properties as investment. Isn't it almost as bad as entering the stock market now?
In Pune, I don't think that buying property for investment ever was a good proposition. Pune knows no boundaries (natural ones) and hence new development continues all over, moving away from the main city. Kothrud extends now upto Bhusari and Bavdhan (where water don't climb) and then Aundh extends to Wakad and Sanghvi and touches Hinjewadi. Now, theoretically, if you work in Hinjewadi, you could as well stay in the opposite direction (from the rest of the city). Its still a barren land (may be currently in Agricultural zone) but soon should be open for development. Or you could stay at Pimpri or Chinchwad and still make it to work in 15 minutes.
Pune real estate has followed the general trend of soaring property prices (Mumbai now being in stratosphere), and projects completing in 2007 end are quoting at 1500 - 1800 per sq ft. Places in Wakad (it's still mostly a gaonthan) are quoting at Rs 2100 per sq ft. That for buildings that may be not have roads constructed around them, forget schools, markets or other basic amenities. There are no hutments around, so getting bais is going to be extremely tough, and whoever you get will cost a bomb :-)).
Playgrounds have ceased to be made mandatory while chalking up plots for development, and that makes me extremely angry. But that, another time.
Pune (residential as well as business wise) can grow in any direction, so new migrants are happier living in newer complexes and that means, your older property never appreciates significantly.
With lot of flux generally in my life and the ludicrous market rates, I have anyway decided to live as a nomad, No property purchase for me in the near future.
Friday, April 07, 2006
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3 comments:
Abhi,
I completely agree with you , I think it is not a good time to buy a property in Pune at this time.
I don't understand 'buying a house' as an investment option..I personally don't think a house is an investment..It is one big serious expense..Though the masses think differently
After staying in Pune for close to two years , I think that it is going the mumbai way, hap hazard development and shoddy planning.
All I can do is pray and say 'God save Puneites' !
Vinayak.
I work in the business of real estate and hence make occassional rounds of blogs on the subject.
I beg to differ completely from the points you have expressed in your blog. However, I can understand the trepidation one might feel about this market.
I think there is only one winner given the situation and that is the 'smart' investor. Figure out the under-valued areas and put your money there. You will never have a bad morning!! Besides this is not easier said and done! It really is easy!! Trust me on that!!
Another marker of a winner is his/her definition of 'investment' in terms of expected returns, horizon and his/her own possible interst in the proerty as a residence. Unless you are very clear on these ocunts its near impossible to make a winning!!
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