It appears that properties in Pune have a better rate of capital appreciation than other metropolitan cities. According to a report, Pune had the highest average appreciation in high-end properties over the past three years (H1 2011 – H1 2014) and the second highest appreciation rate in mid-segment properties. According to real estate consultant Cushman & Wakefield in the high-end property market, Pune recorded the largest increase in capital value of 39%, while Bengaluru recorded an average increase of 37% in capital value between 2011 and 2014. The residential segment of Pune has seen high levels of capital value growth in the mid and high end segments. With the city expanding at a rapid pace due to the growth of services and manufacturing sectors, activity in the residential segment has also increased significantly. Among the other cities, the Chennai market recorded an average increase of 34 percent in capital value over the same period, while Mumbai and Delhi-NCR recorded an identical average increase of 24 percent. Hyderabad remained last on the table for the average increase in capital values ââover 3 years. The report analyzes the performance of the residential segment in the top seven cities to rank the average appreciations of capital value in the cities. While all cities saw their capital values ââincrease by 14% to 41% in the mid-segment, high-end properties saw an appreciation in the range of 16% to 39% during the same period.
âDespite the disparity in the levels of average appreciation of capital values ââin the past, it is comforting that in the face of weaker economic sentiment, all markets have experienced capital appreciation.
Interestingly, markets that are largely end-user driven are also those with the highest average increases in capital value, while investor-driven markets such as Delhi-NCR and Mumbai have remained. contained in the appreciation received during the period, âsaid Shveta Jain. , General Manager, Cushman & Wakefield Residential Services.
In the middle segment, Bengaluru recorded the highest average appreciation of 41% during the period under review, followed by Pune which recorded an average appreciation of 28% during the period 2011-2014. Chennai (27%), Delhi-NCR (22 percent) and Calcutta (17 percent) also saw notable increases.
Mumbai, which recorded an average increase in capital value of 16 percent, finished second, followed by Hyderabad, which recorded an average increase in capital value of 14 percent.
âGoing forward, demand for mid-range housing will be robust due to recent budget tax reforms and positive economic sentiment. However, due to the oversupply scenario in the mid-range segment, growth exponential value of capital is highly unlikely in the short term, âJain said.
In terms of city-specific appreciation, East Pune has seen a 38% increase in capital value in the mid-segment and 65% in the high-end segment since 2011, mainly due to continued user demand. final. Established locations in West Pune such as Deccan Gymkhana, Model Colony and Aundh-Baner have experienced healthy capital appreciation (since 2011) of 46% and 41% respectively in the premium segment.