Released on: March 10, 2008, 11:41 pm

Press Release Author: George Gonigal

Industry: Real Estate

Press Release Summary: The residential market in Pune is in a slowdown phase. With
fewer transactions happening and values holding, the real estate action has shifted
to the rental front.

Press Release Body: The residential market in Pune is in a slowdown phase. With
fewer transactions happening and values holding, the real estate action has shifted
to the rental front.

According to broker Raju Punjabi, Astitva Real-estates,\" The investor has almost
entirely exited the Pune market and the residential sector is now driven by the
serious end user.\" Since the residential property is available for sale at high
capital costs and there is a wide gap between monthly EMI and monthly rent, the end
user is moving towards the affordable rental option.

Pune\'s rental market is particularly active in prime areas such as Koregaon Park and
suburban areas of Kalyani Nagar, Viman Nagar, Aundh, Baner and the upcoming Kharadi.


A 2BHK apartment is the maximum transacted residential property in Pune and is
currently fetching a monthly rental of Rs 15,000 in posh localities such as Koregaon
Park and Kalyani Nagar. Kalyani Nagar due to its well laid out social
infrastructure, good ambience and quality of life is in great demand by IT
professionals. If however the accommodation is semi/fully furnished the value goes
up till Rs 20,000 per month. In Kharadi which is an upcoming suburb of Pune, the
monthly rental of a 2BHK is Rs 8-10,000 while in Viman Nagar, it is Rs 12,000.

Demand for rental accommodation emanates mainly from the IT sector and other working
professionals. A lot of students also take up apartments on sharing basis especially
in areas such as Viman Nagar which is home to many colleges and institutes. Besides,
foreigners and NRIs are is an important segment in tenants, due to the influx of
many IT companies and therefore expatriates.

The trend is more towards unfurnished apartments although the demand is for
semi-furnished ones with at least cupboards and kitchens. The rental tenure is
typically for 11 months, after which values are revised by 8-10 per cent based on
market conditions.

For more details on Pune Real Estate log on
http://www.magicbricks.com/property/faces/jsp/indexc.jsp

Web Site: http://www.magicbricks.com/property/faces/jsp/indexc.jsp

Contact Details: george.gonigal@gmail.com