From the very start, the year 2020 has brought various challenging issues. These issues, especially the recent pandemic, are changing the way in which we operate. The impact of coronavirus is being felt by all sectors of business across the globe. One of the worst-hit areas is the real estate and residential property market in Pune. These include areas such as Wakad, Hinjewadi, and Kharadi.
So, let us examine why the residential property market is under pressure in Pune. What are the factors that are driving this scenario? Let us explore the localities impacted.
1. Residential property in Wakad:
Located near the Pune-Mumbai expressway, Wakad is one of the best residential areas in Pune. This is evident as the area has a livability score of 9.4 out of 10. Wakad, which was once a village, has completely transformed into an urban hub of Pune. Wakad houses many Top IT companies. These include TCS, Infosys, IBM, and Tech Mahindra. The area also has good commercial and social infrastructure.
2. Residential property in Hinjewadi:
Hinjewadi is an area that is located on the outskirts of Pune city. It is approximately 18.5 kilometers from the main city center. Hinjewadi houses a good number of IT and Biotech companies. It is, therefore, no surprise that the area is referred to as the IT park of Pune.
3. Residential property in Kharadi:
Kharadi is one of the most premium locations of Pune. This is due to the area’s location, which is in close proximity to Pune Airport (7.5 Km). Furthermore, Kharadi is surrounded by IT hubs. The area also has a sound social infrastructure with a wide range of civic amenities.
Main reasons why the residential property market in Pune is under pressure.
One thing in common between these areas is that they are all among the Top IT hubs of Pune. Furthermore, the population in these areas mostly consist of millennials and youngsters who are students and working professionals. This population demographic of the city has the most significant influence on these changing trends in the COVID-19 pandemic.
Here are a few reasons why the residential property market in Pune is under pressure.
1. Work from home
The population consists largely of IT professionals from different parts of India who have come to Pune for work. They usually rent apartments, stay in a PG or a co-living space. Now, however, with many corporates offering indefinite work from home options due to the pandemic, many of these young professional migrants have returned to their hometowns.
2. Corporate layoffs
Corporate layoffs are another huge reason why the residential property market in Pune is under pressure. As the pandemic has pushed the economy to the verge of collapse, many corporate companies have been downsizing. Some even have shut down. This, as a result, has forced youngsters to return to their homes.
3. Financial stress:
With so many people vacating their PG rooms and co-living rooms, many of these co-living solutions are no longer affordable. Since these Co-living solutions have a shared rent system, everyone in the room or an apartment will share the cost of the rent. But now with their roommates vacating the premises, the financial stress increases on the remaining people. This has forced the remaining people to move out too. This has become a vicious cycle. Moreover, many offices have cut the salary of employees during this coronavirus period which have further put more financial burden on these young professionals. So, they move out of Pune to their cities in anticipation of better times.
4. Health concerns
As the novel coronavirus is spreading rapidly across India, these young professionals staying in Pune are worried about their health and safety hazard. They don’t want to take the risk of staying in a large community in such close proximity and shared infrastructure. So, considering these safety hazards, they prefer to stay with their families in their hometowns rather in a co-living space.
So these are the main reasons why the residential property market in Pune is under a lot of pressure. In times of crisis like this, Housewise, India’s fastest growing property management company, can be invaluable. Housewise offers its services to take the burden off of rental property owners by providing a complete rental management solution. From property advertisement, tenant screening to rent collection, and property maintenance to online agreement drafting, Housewise provides end-to-end property management services. We are here to help you in this crisis. Contact us now.
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