As per a recent survey of the Property Index (MPI), prices for property Pune have grown by 12.5 per cent in June compared with the same month last year.

Prices up 12.5%
The index for the month of June stood at 1094 vis- a- vis 972 a year ago a rise of 12.5%. The increase in the Pune index can be attributed to the hardening of Pune property prices in the underlining markets of Aundh, Pimple Saudagar, Chinchwad, Karegaon Park, Wakad, Wanowarie, Hadapsar, Viman Nagar and Talegaon.

Pune prices moving at a rapid pace
A spokesperson for the MPI index said “Pune property prices have moved up at a rapid pace keeping many home buyers at bay. The un-expected fast run-up has lead to a mood of caution in the near term. The home buyers seem to be in a wait and watch approach. The price movement over the next few months will determine the next definitive trend”

Pune residential property costs in city has increased by Rs 250-300 per square feet in last couple of months, builders and developers body Confederation of Real Estate Developers‘ Associations of India (CREDAI) Pune has said.

“With increase in government and municipal charges getting rolled out in the form of VAT, Service Tax, Ready Reckoner Rates, increase in stamp duty, VAT on materials — all combined, we see an increase of residential property rates by Rs 250-300 per sqft,” president of CREDAI, Pune, Satish Magar told reporters.

According to him, Pune real estate developers pay different types of taxes under various heads, including stamp duty on land cost, and increase in taxes will only put extra burden on consumers. “At least 40 per cent of the total cost share is of municipal charges alone. If these are not enough, we are troubled with the shortage of land. Without adequate land bank in city premises, it is difficult to get new projects in shape as majority of the people want to live near the city,” Magar said.

Property prices in Pune went up by 9.2% in the last quarter, making the city one of the only three in the country to see a rise.

Apart from Pune, Ahmedabad and Kolkata saw a price rise in the January to March quarter. In Mumbai, the prices dropped by 2% in the first quarter, while in Delhi they dropped by 7.6%.

Shopping malls, multiplexes and top retailers in Pune are seeing as much as a 70 per cent drop in business owing to the swine flu outbreak in the city.

The Business Standard reports 10 multiplexes and 20 movie halls in Pune are expected to suffer losses for a week since they have shut shop on government orders. Though only two malls out of 15 have downed shutters, those that are open are also seeing a sharp decline in footfalls

“Even before the directive was announced, our occupancy had dipped 25 to 30 per cent. On an average, our daily collection is close to Rs 2 lakh and we are expecting our damages to amount to Rs 1.25 lakh per day owing to the shutdown,” said Rishikesh Chaphalkar, partner, City Pride, which has two multiplexes in Pune.

“There is a impact on our sales in Pune, but it is premature to say that it is due to swine flu. It could be that shoppers are waiting for a big sale that is starting from tomorrow,” said Atul Takle, head of corporate communications at Pantaloon Retail, which runs Big Bazaar and Central in Pune. Big Bazaar is running its five-day Mahabachat sale from August 12.

Others declined to share numbers on ethical grounds. “It would be most inappropriate for us to comment on potential losses as public health comes first and we must all be supportive of attempts to safeguard it,” said Alok Tandon, chief executive of Inox Leisure Ltd, which runs mutiplexes in Pune and Mumbai, among other cities.

Malls in Pune are also battling tough times. “The numbers have fallen a whopping 50 to 60 per cent,” admitted Sanjay Kakade, owner of Kakade Centre Port and SGS Magnum mall in Pune.