Real Estate Market News: Property rates coming down in this city; check out name, reasons and other key details

Property rates are increasing in most of the urban cities in India. This is mainly due to factors like demand, urbanisation, the luxury market, and economic growth. According to the 1 Finance property Total Return Index, the property market in India has had an exceptional upswing, with prices in key cities rising 48 per cent over the previous five years. 

However, there is a city in India where property rates have been decreasing over the last one year, according to a report. Housing.com and the Indian School of Business reports claim that Pune is the only big city in the country where a huge decline in the price of houses has been recorded in the last one year. This decline is being directly linked to the increasing uncertainties in the IT sector, the report said.

Pune's Housing Price Index (HPI) has declined by 4 points on an annual basis. This trend is in stark contrast to other IT cities like Bengaluru and Hyderabad.

Why are property rates coming down in Pune?

The current uncertain environment in the IT sector and the fear of recession in America are affecting the decisions of Pune's home buyers. This is affecting the sales.

According to the report, "Increasing uncertainties in the IT sector have impacted home sales in Pune. As a result, price growth has slowed down. This is reflected in the 4-point year-on-year (YoY) decline in Pune's HPI reading."

The report also cited that despite the drop in prices, demand for bigger and premium homes remains strong in Pune.

On the other hand, there has been a huge increase in property prices in IT cities like Bangalore and Hyderabad. The main reason for this is the strong tech workforce.