Pune, the second largest city in Maharashtra, located approximately 160 km from the financial capital of India, has gained prominence due to the rapid development of the IT/ITeS, manufacturing and education sectors. The state government’s proactive approach in providing attractive incentives in its 2003 IT/ ITeS policy has attracted major software companies like Infosys, Symantec, Wipro, Accenture, Mahindra British Telecom, Cognizant and many others to Pune. The city is growing primarily because of the growing population of professionals and students brought about by ample job opportunities and availability of quality educational institutions. In addition, most of the older generation retired from middle management positions in Mumbai find this place attractive due to its affordability. Moreover, the Mumbai Pune Expressway has prompted many Mumbai residents to purchase in Pune for investment or as a second home. Pricing is the key factor, as a similar amount invested in a small apartment in Mumbai buys a very large apartment in Pune with more usable space. Integrated township projects like Magarpatta, Blueridge, Nanded City, IVEN Township, Megapolis, KUL Ecoloch and Amanora on the outskirts near developed IT/ITeS hubs which makes walk to work concept liveable in Pune. Most of the new residential developments in Pune have been concentrated in the peripheral areas of the city alongside the commercial developments. A large share of the upcoming premium residential space in Pune is in the form of township developments, the majority of which are concentrated in and around the IT and industrial hubs. In the past, the city has seen considerable appreciation in property values. The areas that will witness maximum uptake would be those having commercial activities and complying with the walk-to-work concept of the city. In addition, factors like good civic infrastructure, schools, recreational zones and parks, and other such factors, coupled with affordable prices, are always a driving factor for robust home sales. The Central part of Pune, traditionally being the commercial and institutional hub of the city, houses various government offices and corporate offices of private firms. Deccan Gymkhanna, Camp, Senapati Bapat Road, Koregaon Park and the Boat Club Road are the key localities that have witnessed tremendous growth in terms of capital and rents. New development in this area is limited due to non-availability of land. Hence, the capital values and rents tend to be fairly high here.
Recently, most of the new residential projects have been launched in western Pune locations, such as Hinjewadi, Wakad, Balewadi, Talegaon, etc. where currently capital values are in the range of INR 3,500 - 6,000 per sq ft. Towards the east, locations such as Kharadi and Wagholi, capital values are in the range of INR 4,000 - 6,000 per sq ft. South and Southeast Pune, too, have seen a fair amount of development in areas such as Hadapsar, Kondhwa, etc. where capital values are in the range of INR 4,000 - 5,500 per sq ft. Though prices have increased in these areas, a fair amount of supply in the pipeline has kept the prices affordable.
About the author
Surabhi Arora, leads the research team in India and has more than 13 years of experience in carrying out multi-disciplinary research and analysis in the area of finance and real estate industry. Surabhi specialises in real estate economics, policies, commercial and residential real estate research with in-depth knowledge of market dynamics across major markets in India.