Of late, Pune has been stealing a march over Mumbai Metropolitan Region (MMR) in property sales. At least, that's what a recent survey by a real estate research firm says.
The national survey by Liases Foras, a real estate research firm, has revealed that while Pune witnessed a 22% rise in sale of residential properties in the quarter ending April 30, 2014 vis-a-vis the previous quarter, MMR reported only a 17 % rise in the same period.
According to the survey, sales in Hyderabad plunged as much as 24%; Bengaluru and Delhi registered a 7% and 1% drop, respectively compared to the previous quarter. Chennai, however, saw an increased by 8%.
"The cost bracket of Rs 25 lakh-to-Rs 50 lakh witnessed the maximum (35%) new sales, followed by the Rs 50 lakh-to-Rs 1 crore cost bracket (32%). In the Pune market, the maximum new sales was in the affordable segment while in the Mumbai and Delhi markets it was in the luxury segment," said Pankaj Kapoor, managing director, Liases Foras.
The average residential price in MMR increased by 7%, followed by Delhi's 5%, according to Kapoor.
"The prices in Chennai have remained stable. Prices in Bengaluru, Hyderabad and Pune have not shown any sign of appreciation on a quarter-to-quarter basis, but on a year-to-year basis, it has increased by 5%, 10% and 9%, respectively," the survey says.
"In MMR, the prices of 1,025 residential projects remained unchanged, while prices of 731 projects increased from 2% to 15%, while prices in 269 projects witnessed a decline," said Kapoor.
Ravi Patil, director, Mangalmurti Construction in Navi Mumbai, told dna that affordability was the main factor behind the rise in sales in Navi Mumbai. "Besides, work on Navi Mumbai international airport is in full swing, and the infrastructure is in good condition. Most people prefer to buy for residential or investment purposes in Navi Mumbai," he added.
Boman Irani, chairman, Rustomjee Developers, told dna that buyers having waited for a long time, must have felt this was the right time to buy homes. "Taxes and ready reckoner rates are going up. They were no relief or reduction in taxes. Due to these reasons, buyers have decided to buy houses now. It happens in real estate; people wait and see the developments and then take a decision. It is a cyclic process," he added.
According to Kapoor, developers were now giving a lot of freebies and were also willing to negotiate. "Affordability is the key factor behind rise in property sales in peripheral areas of Mumbai city. In the luxury segment, sale is still lukewarm," he said.