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Pune has seen an incredible rise in property prices since 2011. The rates have risen more than 35% in this eighth largest city in our country. Residential properties in Pune have been performing better than Mumbai and the National Capital Region. However, with the recent slowdown and sluggish markets in the country, there are high expectations for a positive change in 2016.

As per a recent report by Fitch, a global rating agency, the Indian property market is expected to see a lot of positive benefits by the end of arch 2016. As we near the end of 2015, we bring you a glimpse of what’s in store for Pune’s real estate market in 2016 :

Low Interest Rates – RBI has cut interest rates in 50 basis points during two rounds this year. As the interest rates are getting lower, home loan seekers are finding a much-needed relief in the sector. These cuts will become more prominent in the next year and those who are looking for residential flats in Pune will get the chance to seal the deal.

The Rise of Luxury in Tier II Cities – Pune has been an attractive destination for luxury and semi-luxury apartments in the recent years. This has prompted both, big and small developers to enter Pune markets. Features like home automation, modular itchens, Italian marble and wooden flooring, clubhouses, swimming pools, Jacuzzi and a host of recreational amenities are now making their way in premium residential properties in Pune. The capital appreciation and rise of luxury also attracts a number of investors to the city.

Residential Plots Gain Prominence – With the rising number of residential plots for sale in Pune, it is no surprise that buyers prefer buying plots for their attractive returns in mid to long-term horizons. The upcoming smart cities around Pune where the apartment culture is still not well-developed are identified as ideal plot destinations. Residential plots in Pune are a great investment opportunity and they will continue to rule the property markets in the next year as well.

Increased Foreign Direct Investments – With the government’s plan of making 100 smart cities in India, the real estate sector has seen a lot of positive foreign investments from NRIs and other communities. The flow of seed funding will boost investment in the sector and lead to tremendous growth in the years to come.

Affordability Becoming Priority – Since the BJP promised ‘housing for all’ by 2022 in their manifesto, affordable housing has become a priority. Many developers are also considering the need for affordable housing and developing projects that match the exact requirements of their customers. As per a recent survey by Common Floor, 50% of home buyers prefer regular amenities over the ultra-luxurious ones. With fewer and simpler amenities in certain projects, buying a home is now becoming affordable and possible for most families.

Easy Payment Plans – Builders are now offering easy payment plans to customers, making it even easier for middle-class families to buy a home. Booking amounts in many projects has come down to just Rs. 50,000/-, which will motivate buyers to finally book their dream home.

Residential properties in Pune have been in the spotlight since the last few years. Though 2014 and 2015 seemed like a slowdown for other parts of the country, properties in and around Pune has seen a steady growth and the coming years also promise a similar growth in this sector.