Is Luxury Housing in Pune Rogered? We Simplify a Report.

Is it er, curtains for Pune's luxury housing? 

This morning, we were doing our regular reading on Real Estate happenings in India when we came across a sort of report/ update from JLL India. You can check out the post for yourself here.

At IREFD, we are always of the opinion that Indian builders love to flog an idea (mostly not their own idea) till it balks and then collapses.

Ditto, ignoring Pune's infrastructure limitations, some localities in Pune suddenly became home to a lot of luxury housing projects.

Currently, to qualify as a luxury home in Pune, apartment sizes are to be upwards of 3000 Sq ft and price tags northwards of Rupees 4 Crores.

What is rogering the Pune Luxury Housing Scene;

# Borderline Oversupply: More like "Hey! We reached an oversupply situation 3 years ago. The Lord save us now."

# Saturation of the most popular areas: What were they thinking when they started? That just like a little puppy should keep growing till it becomes as large as an Airport, building luxury housing would stretch that locality till the Great Wall of China?

# Pune's growing Infrastructure Problem: I have lived on the 8th Floor of an Apartment in a nice locality in Pune and trust me, if there was a fire in that building, everything inside the toaster and outside it would have looked exactly the same half an hour before a fireman would reach my place. That said, infrastructure is a major issue with all of India. Nothing anyone can do about it. (Please Do NOT double park on narrow streets. Your car could obstruct a fire engine or an ambulance and people could lose their lives. Thank you)

# Stagnation of Luxury Housing prices in Pune's most sought after locations: That means only one thing. That those localities are not really the most sought after anymore. Nobody wants to buy a luxury home at the asking prices prevalent in such localities. Luxury mini localities or streets could be coming up elsewhere, quietly. Happens all the time in India.

Is there any good news at all then?

Oh YES! The report says - "Luxury Housing in Pune is still an evolving segment (after having exhausted one third of Pune's land? That is a bloody big laboratory!) in terms of technical aspects and specifications when compared to the corresponding markets in cities like Mumbai, Bangalore and Delhi. However, buyers have the benefit of larger sizes for the same price when compared to these far more expensive cities."

So, if you live in Delhi, Mumbai or Bangalore and cannot afford a luxury home of your desired size with a price tag of INR 5 Crore, please consider moving to Pune with bag and baggage.

Our Stupid Inference for Builders in Pune;

STOP building luxury housing. Those reports we all make and circulate on the internet are very nice, general and happily ever after kinds. No one would compare luxury homes in Delhi and Bangalore if they wanted to buy one in Pune! Build real estate that people want to buy. Sleep better at night.

Cheers!