Saturday, June 20, 2009

Pune Real Estate Price Dynamics

So, Continuing with my previous blogs on pune real estate, I though I will update you guys about this weekend's update.

This week, we met many builders and more than that many buyers. Several people contacted me from different places in India but also from outside India :)

So, I thought it would be only more helpful if I were to share more of my weekend home search information with you all.

First, I saw that there are fewer 1BHK flats available but there are very few takers. Reasons:
  • They are out of people for most lower middle class people (15 Lacs +)
  • Most people prefer to have childrens. So, all of IT crowd is looking for 2+BHK (even though they switch jobs a lot and change cities all the time)
  • 1BHK flat may be a below status (?)
So, I saw the availability of 2BHK. Inspite of all the rates increase, one of the reasons rates have not come down to what it should be (50% cut) is because of 2BHK. During the boom time, several builders planned apartments that are lot more of 3BHK and lot less of 2BHK. Some time ration was 4:2 on each floor.

With boom in IT, people did buy lot of 3BHK at that time. Now, with down turn, uncertainity and liquidity problem, those 3BHK buyers have moved a step down and are buying 2BHK. That has created competition to purchase low inventory of 2BHK between existing 2BHK buyers (cash constrained) and new 2BHK buyers (with excess cash and ability to buy 3BHK). So, most of the places 2BHK are being sold. This provides enough cash for builders to keep hopes high that they will have pick in the market and will also seel 3BHK.

With time, I think they will build lot more of 2BHK and few of 3BHK. So, either lot of 2BHK or lot of 3BHK with less sq ft. This might create more concentration of 2BHK. What do you guys think?

P.S.: Are your friends purchasing or planning to purchase flats in pune? If yes, please ask them to share their latest negotiated price with me (us). We are trying to create initial inventory of all locations and lowest price negotiated. This will allow all of us to negotiate and bring the rate down further. Also, it will allow to compare all properties in one place. Wait for more update on this ;-)

And if you are planning to buy, ask me (wakad side) and you will get information of what is latest.

am a software engineer by heart and profession. Not an expert on real estate. But hey, we can always collaborate and share information.

3 comments:

Ravi Karandeekar said...

# Ref: " If yes, please ask them to share their latest negotiated price with me (us). We are trying to create initial inventory of all locations and lowest price negotiated. This will allow all of us to negotiate and bring the rate down further. Also, it will allow to compare all properties in one place. Wait for more update on this ;-)"

Hello Srini!
Good idea. Great initiative. Looking forward for the updates!

Srini said...

Ravi,

I will certainly keep you updated. BTW, do you know if anyone publicly maintains this? Any company, organization, etc?

Ravi Karandeekar said...

# Ref: "do you know if anyone publicly maintains this? Any company, organization, etc?"

- No, Srini, sorry, i don't know. That's why i found your initiative interesting. Keep it up, you are doing great!