Pune Property Exhibition - Expert Comments

Late last month we saw a property exhibition in Mumbai where the demand was lackluster. Realty exhibition in Pune held over the weekend evoked slightly better response. Here are the key takeaways,

• Demand for property has slowed down in the last 3-4 months by 15-18%.
• Despite a visible slowdown in volumes during the last 3-4 months, the developers have not reduced their property prices, expecting the demand to pick up in the next few months. On the contrary, experts are of the opinion that the demand will continue to slow down in future, correcting the property prices eventually.
• Residential property prices for the projects showcased in the exhibition are in the range of
  INR 2,500 - 5,500 per sq ft, depending upon the developer and location (pertains to players attending the exhibition). Rates of commercial properties are between INR 6,000 and INR 10,000, and lease rentals vary between INR 50 and INR 85 per month. [Majority of the Developers are willing to negotiate]
  
• Execution delays between 4-8 months is visible in 35% of the projects.
• Major foot-falls at the exhibition were Real Estate Speculators planning to BUY a second home in Pune.

54 Developers are developing 254 projects at various places across Pune and here is the breakdown. 215 - Residential, 13 - Commercial, 11 - Rental and 6 - IT Parks.