Correction in the prices of the properties is in full swing in Pune Real Estate market.
Initially some builders artificially tried to create a Price of 2BHK flat to under 30 lakh in new emerging residenticla areas like Wakad and Hadapsar.
But this was done by reducing the area and not including hidden membersip/club charges... But buyers are smart and did not show much interest...
Many builders carried large advertising campaigns with this price point in expectations that a large number of waiting buyers will jump in and take their projects thru. 90% of the hoardings in the city carry Builder Ads... Newspaper advertisements continued.
But I did not see any sign of Buyers yet jumping in. This has lead to some builders to realistically drop the prices now and Price competition is now visible. Small builders want to sell their inventory at minimal profits and get out of their projects whereas large builders are focusing on advertising and offers.
But overall the market prices are falling rapidly. Some developers have changes thier new schemes from 2/3 BHK to 1/2 BHK. Small developers are launching new prices in the market like 16Lakh for 1BHK and 21Lakh for 2BHK. Prices like 24Lakh to 26Lakh for 2BHK already exist in the market due to fall out of 29lakh price initially offered by some builders.
Overall I think soon the larger builders will have to set their 2BHK prices to below 25lakh level.
Builders have stopped work at most of their projects and are just spending on Advertising to get buyers. It seems that most people who booke din lst 1 year will get delayed pocessions ... If you flat is in new building with you being first few to book, it can take very long for you to get pocession. Builders are not borrowing from Banks due to high interest rates.
Most of the SHopping mall projects that were not yet leased have been completely halted. Builders plan to restart them only when they get customers for lease or buyers as office.
