Real Estate News

Pune Needs More Hostels'

Escalation of real estate rates and the information technology boom has taken a toll on student?s accommodation in Pune.

In a span of two years, the average rentals in deccan area in the city have increased by 75-80 percent. Two years back, the average rent for a one BHK flat was Rs 4,500, while that for a two BHK flat was around Rs 8,000. Today, the average rentals have gone up to Rs 7,000 to Rs 15,000. The cost of ?cot-basis? accommodation too has risen from Rs 600-800 to Rs 1,200-1,600. The rising rates have forced many students to move to the outskirts of the city, bringing with it the problem of longer commuting time.

Students say that one factor that has led to an escalation of rentals is the high demand from IT professionals, whose rents are reimbursed by their companies. This has either led to an abnormal increase in the rentals or landlords deciding not to rent out their places to students.

Real estate agents say that IT boom is definitely one of the reasons for the rise in rentals, but besides IT, the cost of production has also escalated rentals. The rise in prices of steel and cement has raised the cost of construction by Rs 200 per sq. ft. in the last three years. Source: The Times of India Pune, August 20, 2007 << Back