Return to office drives up rent in Pune
As the pandemic recedes, and companies call employees back to work, the floating population of the city is slowly crawling its way back, however, they are facing the heat as they have to shell out more for everything
As the pandemic recedes, and companies call employees back to work, the floating population of the city is slowly crawling its way back, however, they are facing the heat as they have to shell out more for everything.
The return of the floating population has directly impacted the rental rates in the city.
“The rental costs have increased by 8-10% across Pune. Rates have increased in Baner, Kothrud, Sus, Hinjewadi in west Pune and also in Kharadi, Vimannagar, Kalyaninagar in east Pune. The price rise is in areas where IT professionals and college students reside,” said Kapil Gandhi, Managing Partner, Sigma One landmarks.
“Earlier, the rental costs in the areas like Kothrud and other areas was around Rs12,000, during the pandemic . At present, it is around Rs15,000. The rough difference in the rental prices is around Rs2,500-Rs3,500,” said Umesh Pawar, founder of Dream work reality i LLP.
Talking about the structure of the rental market, Anil Pharande, President of CREDAI- Pune Metro, said, “The rental prices are entirely market driven. It will increase gradually as the floating population comes back.”
The floating population which includes students and working professionals are struggling in the city to find flats since the last few months. Sayali Lohar, an IT professional claimed, “I used to stay in a rental flat in Kothrud in 2019 and I paid Rs13,000 per month. Now, I have been searching for flats but the quote is around Rs30,000-Rs40,000.”
“With companies calling employees back, the demand for rental property is soaring. I have contacted 13 brokers, but in vain. Many are moving to the outskirts as they cannot afford rent in the city,” added Lohar.
“Based on the locations, the rental prices will differ. Pune east and west have highest demand. A flat which used to be around Rs15,000 pre-pandemic, will now be around Rs18,000 in residential areas,” added Pawar.
Uma Jadhav, a property owner in Koregaon Park area said, “During the pandemic, I had no tenants and my family income suffered. Now that the demand has increased, I have increased the rate of one room by Rs2,000 per month.”
Students too are feeling the pinch in the pocket. Riya Khanolkar, a student of Indology at Tilak Maharashtra Vidyapeeth said, “Most college students rent flats in peth and Kothrud areas. The rents for flats and PG accommodation have doubled. Some of us have started living together so that the cost can be divided.”
Additionally, the prices of property have also increased. Pharande said, “Post Covid and then Russia-Ukraine war the prices of construction materials have increased by 40-45%. The prices of materials like cement have increased by around 100%. This escalation brought a change even in the selling prices of the flats by 15-20%.”
Kailash Mundada, director of Majestique Landmarks said, “The price rose because of import export issues and the demand-supply chain. It is on the reversal trend now but this will take more time than it took for increasing the prices. However, the sales of property have also gone up which is a good sign for the builders.”
As the prices of rental flats soar, the floating population bears the brunt.