Is it a good time to invest in property in Pune?

Buying a property in Pune would be a good decision, given that the real estate industry in this city is lucrative. Both residential and commercial properties are in high demand in the city.

Over the years, real estate in Pune has been witnessing high demand, as the city offers great employment opportunities to the residents. It also has a well-developed social infrastructure and good transportation facilities.

All these factors make Pune one of the best places to buy a home. Commercial property investors are also looking forward to buying offices and retails shops in Pune. With prices increasing, this would be the right time to go for the purchase.

Why should you invest in Pune property now?

Over the last couple of years, the property market in Pune has struggled due to various reasons. Starting with demonetization, the government has come up with several reform policies over the years. The prices of apartments in Pune are increasing, given that the industry has got greater transparency now.

As the market is recovering at a fast pace, investors are buying these properties and they can enjoy a good return in terms of rent. Besides, the price of property has been increasing rapidly and investors are willing to use them for commercial purposes.

If you invest in these properties now, you can enjoy a lucrative income in the form of rent. This investment potential for residential and commercial properties makes it important for homebuyers to acquire new apartments.

Low Interest rates

Presently, the repo rate has been slashed to 5.40% by RBI, which is the lowest in the last five years. After the reduction, the banks have also slashed the interest rates on home loans. The MCLRs of banks presently stand in the range between 8.30 to 9%.

Besides, repo-rate linked products have also been released by many banks in the market. Presently, investors can obtain home loans at interests as low as 8.05%. Therefore, you can get a property for personal use, as well as commercial purposes.

People are also investing in Tier II and III cities. These zones have turned out to be the next centers of growth. The HPI of RBI reveals that the investment potential in the real estate properties in Pune looks good.

You may consider buying a commercial office space in Pune now.

Tax deduction benefits

During Budget 2019, an additional deduction of INR 1.50 lakhs was announced on the interest of home loans. However, this is applicable for properties that are priced below INR 45 lakhs.

This is likely to reduce the home loan interest for the buyers, and they will be able to get the properties at affordable prices. Many people prefer buying residential properties and leasing them off.

They too can benefit from the lower tax benefits, as the purchasing price will be lower, and they can pay the EMIs through the rent generated through the property. This is one of the best investment avenues presently.

Given that other investment options like shares are vulnerable to volatility, it would be wise to invest in residential property in Pune.

Lower rate of GST

People who are investing in properties under construction will benefit from the lower rates of GST. In the affordable housing section, the GST has been reduced to 1%, on under-construction property. However, if you are willing to buy ready to move properties, you need to pay a GST as high as 5%.

Therefore, it would be a good decision if you purchase a property that is nearing completion. In this case, you need to pay a GST of only 1%. At the same time, you can benefit from the interest reduction schemes that have been introduced by the government.

Particularly, if you are willing to buy commercial property in Pune, you should invest now.

Growing commercial sector

Pune has one of the fastest-growing commercial segments in the country. Particularly, the IT industry in Pune is rapidly developing. Residents can find good employment opportunities in this area.

Over the years, several corporate employees and their families have migrated to Pune. The demand for flats in Pune is on the rise. At the same time, new commercial properties are being developed in the main city and its suburbs. Business firms operating here can easily find their customer base.

Therefore, the prices of both residential and commercial properties in Pune are on the rise. If you are interested in buying a new property in Pune, you can choose from a wide range of options. The apartments are available in various configurations.

Therefore, the residents can go for 1,2,3 and 4 BHK apartments, studio apartments, penthouse, villas, and bungalows. This is the right time for purchasing property in Pune Maharashtra, and you can draw immense financial benefits from the investment.

Author: Parul Chaudhary

Email: [email protected]

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