Boom town gone bust

Talegaon,40 km from here,promoted as a weekend home destination and which witnessed good business over the past few years,has hit a bad patch as far as sale of residential properties is concerned.

Written by NitinPatil | Pune | Published:March 29, 2009 3:52 am

Once highly sought after,property in Talegaon takes a price dive

Talegaon,40 km from here,promoted as a weekend home destination and which witnessed good business over the past few years,has hit a bad patch as far as sale of residential properties is concerned.

Market analysts say the slowdown has hurt the real estate business in the town by 25 to 40 per cent and it will take at least a year to recover.

Talegaon,run by a municipal council,was one of the most sought after places till a few months back. Situated on the Mumbai-Pune corridor,it is connected to both the cities by an express highway.

The idyllic town had even bagged the ninth position in the top 15 rankings in the country in terms of growth in industrial rentals as per the Cushman and Wakefield report last year with the proposed Chakan airport and industrial belt giving it the requisite fillip. But now the boom town is struggling to cope with the market

situation.

“Business has been affected by no less than 40 per cent,” said Run Chitnis,an official of Jones Lang Lasalle Meghraj (JLLM),a global real estate services firm.  He added,“It is being observed now that people are not coming forward to invest in Talegaon. Investors have started thinking of other places around Pune.”

An official of Manav Bhakti Realty,Deepal Bagul,said,“The slump could be a direct result of the economic slowdown. The investors are not confident about investing in areas outside the main city. From about Rs 2,200 per sq ft some months back,the rates have come down to Rs 1,600-1,700. We are left with no option but cut rates. Customers are smart and are not taking any freebies or add-on offers.”

Rajashri Dixit of N G Kulkarni Builders,which has its Godai Nagar project in Talegaon,admitted that they have had to slash project rates by about 15 per cent.

However,market analysts believe Talegaon will spring back in a short while. Mohammad Aslam,head of JLLM’s Pune region,said,“Talegaon is now experiencing a quiet period. It will pick up soon,as it has a number of advantages like being an industrial belt. The proposed airport in Chakan will also help. The town is also famous for its floriculture business.”

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