Now, Pune developers fancy budget homes

The fear that high-end residential apartments may remain unsold hit almost all luxury apartment developers in Pune. And, this has led these developers to enter the economy or budget accommodation segment in the last four to six months.

Real estate developers, which were building apartments for a price tag of Rs 30 lakh and above are now busy planning smaller flats in the price range of Rs 12 lakh and upwards.

The real estate market in Pune has seen a steep rise in prices over the last four years due to a rapid growth in information technology, automobile and education sectors. However, the slowdow in the economy has put the real estate developers in a fix as there is an overall 15 to 20 per cent price correction in the market.

Speaking to Business Standard, Mohammed Aslam, Pune-head, Jones Lang LaSalle Meghraj, said, “The real estate market will see low-cost apartment projects coming up fast in Pune. There are potential buyers in the city but most of them are interested in budget flats. We expect to have around 50,000 units ready to sell by December this year, but the sales would be less for sure.”

The Goel Ganga group, which is known for its premium apartments, has recently launched four low-cost projects, where flats are priced at Rs 16 lakh and above. “Over the next two years, we will have 500 low-cost apartments ready,” said Managing Director Atul Goel.

Kolte Patil Developers, a listed firm, too has decided to enter low-cost accommodation projects. The company plans to launch a budget home project in a suburb called Wagholi, which is about 12 km from the city. The company has already acquired land for this project and the apartments are expected to be priced at Rs 12 lakh.

Panchshil Realty that wanted to launch India’s first branded home scheme, has suddenly decided to launch budget accommodation scheme. The firm had announced to launch the country’s first condominium in Pune priced at Rs 6 crore and above.