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Are the rising real estate prices sowing seeds of hesitation in your mind about investing in residential properties in Pune? Wondering if the bubble is going to burst and you should wait for property prices to fall down? If you keep waiting, you might end up not having an investment property at all. Looking at the trends of rising property prices since the last few years, in all probability, the properties you have shortlisted will get costlier as you wait. It’s much better to enter the world of real estate investment now and enjoy the rewards in the future.

An Appreciating Asset

Residential projects in Pune can become one asset whose prices keep steadily rising in the most conducive markets. Though few analysts have said that property prices are now ripe for a correction, developers are holding the prices in key areas around the city, even as buyers are waiting for a price fall. Due to the supply-demand imbalance, there is a high chance that the trend of rising prices will continue and real estate will become your most appreciating asset, even when other assets are affected by the volatile market conditions. For e.g. in 2011, when the Sensex crashed almost 25%; prices of homes remained firm, even though there was looming uncertainty in the global and domestic markets. The prices of gold have also fallen considerably in the last year, making them a non-lucrative investment option.

The Demand-Supply Equation

Experts in the industry have noted that due to the wide gap between the rising demand and the limited supply in real estate, the prices of residential properties in Pune will stay steady in the long run. There is an acute shortage of residences, especially in main cities like Pune where the exponential growth has led to the immigration of students and professionals in large numbers. Due to this, the prices are increasing for mid and long-term investments in the city.
Compared to stocks or commodities, real estate prices in India do not fluctuate as much, keep investors’ money safe and deliver good returns.

Importance of Exercising Caution

Residential projects in Pune have outperformed bonds, equities and currency by a wide margin in the last few years. As the Indian economy continues to grow and Indians enjoy higher purchasing powers, the prices of properties will continue to rise. However, in spite of this positivity in the real estate markets, investors need to exercise caution while making their purchase decisions. While it is a good idea to invest in real estate in Pune, it is equally important to consider your aim and analyse your objectives. Understanding investments in regard to residential real estate is much easier compared to commercial properties. If you want to invest a large sum in a single asset and hold it for mid-term to long-term, residential real estate investment will surely work for you.
Before you make the final decision, always check for the location, growth prospects of the neighbourhood, basic amenities and services around along with the developer’s credibility to ensure you get a profitable deal.