Pune

Real estate experts advise homebuyers to take a plunge without waiting for price correction, which is unlikely to happen.

There were two concerns afloat in the residential market one was the buyer expectation of a drop in property prices and the other from the investors regarding returns and market sentiments. Post-Union Budget and during the remonetisation phase, experts are advising buyers not to wait but to take the plunge.

Nayan A Shah, CEO and managing director, Mayfair Group, dispels a common misconception that property prices will drop. He tells  "It's a myth. Post-budget, there have been no discounts in the market. In the last three years, a significant rise in construction cost has been noticed. Developers have borne the rising costs (almost by 40 percent).The market has remained down for the last two to three years and during this period, developers have not increased property prices."

The real estate sector will be back on track in a few month's time. In an exclusive interview with Magicbricks, Venkaiah Naidu, Union minister of urban development, housing and urban poverty alleviation, says that provisions made by the government should work as an impetus for buyers. Stressing on infrastructure he says, "Providing infrastructure status (affordable housing) will bring more money from banks to the market and will focus on creating more housing stock for the needy."

Moreover, the Prime Minister has announced interest rate subvention schemes of four and three percent, respectively, for housing of Rs 9-12 lakh and Rs 12-18 lakh. The budget announcement that instead of built-up area of 30 and 60 sq meter, the carpet area will be considered, will help create bigger houses for all, including the middle classes.

The phase of fewer transactions in the real estate market will soon be a chapter of the past. It was the short-term impact on the market, post demonetization.

Atul Shine (Purple Realtors), a real estate consultant in Pune, says, "In the long-run, investors need not worry since at the time of investment there is a waiting horizon of three to six years. During this time-frame, the market will be at a better position. The impact of demonetisation was short-term."

Pune residential market statistics Investment for three to six years is unlikely to hurt if a purchase has been made after proper due diligence and research. According to Magicbricks data, previous price trends show that west and central zones of Pune offer good scope of investment. A long-term investment is likely to earn healthy returns.

Considering property prices will fall back to normalcy in some months' time, it will be wise to shortlist and buy a property soon.  A good property at lower rates now will fetch good earnings in a few years. "It is a good time to buy. This is a buyers' market and negotiations are available. Compare rates and go for a good location and project for better returns in future," concludes Rajan.

In the west zone, properties are in the Rs 3,000-Rs 10,000 per sq ft range with the Rs 6,000-Rs 7,000 per sq ft being the dominant segment with over 50 percent share. This is followed by the Rs 7,000-8,000 per sq ft budget with 23 percent share.

Most preferred localities here are Wakad, Baner, Aundh, Kothrud and Hinjewadi. Owing to infrastructure developments and availability of properties, the west zone appears to be a good choice for investors at this point in time.