Real Estate Pune
In Pune, lease space comes for a fraction of the cost in Mumbai.
Prices of commercial space at Pune’s IT parks when compared to
Pune or even Hyderabad is competitive. This has had IT companies
bursting into a flurry of activity creating demand for commercial
and office space and concomitantly residential housing facilities.
The city’s highly qualified workforce has attracted IT companies.
The IT infrastructure prompted housing boom in the city. Locations
like Hinjewadi and Wakad Nagar Road, Hadapsar Road, Kharadi and
Sholapur Road are offering real estate solutions for office spaces.
Professionals in IT companies readily pay a premium and take
on rent or even buy higher-end apartments and flats in the city.
Builders have been prompt in constructing residential complexes
that are sold out within months of launching the projects. Suburbs
of Pune are also being realized for their property value and quality
housing. Decentralization in certain areas including the original
Central Business District (CBD) of these areas a long with development
of micro-markets are offering new opportunities.
The rental market in Pune is buoyant and inviting. The idea of
investing surplus cash in a property or two in Pune and leasing
it out is fast catching up, especially among the NRIs from the
Gulf.
Flat on rent for students’ accommodation is also a trend that
hardly allows the upbeat mood to dissipate. Pune has shown impressive
growth on the retail front. Leading developers have a variety
of premium properties to offer and plan innovations.
Appreciation
The higher capital and rental yield rates spells a good time to
take long term positions in residential properties. A decently
rising residential property prices appreciation hovering somewhere
between 30 and 40 per cent and expected to go up further is very
telling about the opportune time of investing in property in Pune
It is in parts driven by demand from the IT and other fast-growing
sectors. Many NRIs from the Gulf are also investing in properties
in Pune, as they consider it a safe bet.
Residential activity has been continuous in areas like Aundh,
Kondhwa, Wanowrie, and Nagar Road, which are on the periphery of
the city but now very coveted for quality and stylish housing.
The impact has spilled over to nearby areas like Wakad, Bhugaon,
Aundh, Balewadi and other surrounding parts. Kondhwa which also
houses the National Institute of Bank Management is also emerging
as a quickly growing suburb. Prices range between Rs. 1000/sq.
ft and Rs 3,500/sq. ft.
The demand for residential property is high in elite localities
like Koregaon Park, Boat Club Road and Sopan Baug. Koregaon Park
has capital values ranging between Rs 3,000-4,500/sq.ft approx for residential and Rs 3,500-5,500 for Commercial property. Other areas
seeing real estate appreciation include Wakad and the important
Pimpri-Chinchwad.
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Magarpatta City is an integrated township in outskirts of Pune with prices ranging
between Rs 1200-2000 sq.ft. It commands 40 per cent of the total
market share of all IT companies coming into Pune. Residential
areas around the upcoming IT corridor of Hinjewadi are poised
for an upswing in capital values. Capital values in these locations
expected to appreciate between 10-15 per cent with overall returns
including lease yields between 15-22 per cent in the next two-three
years.
A huge number of people are parking their money in flats and
apartments to further renting out to students. The city’s close
proximity to Mumbai has an effect on the real estate scenario
of Pune even as it attracts more investment which has facilitated
sprawling of prices.
NRI Real Estate Trends
The demand for premium category apartments, deluxe villas and
housing complexes from NRIs speaks significantly about the real
estate trends in Pune. Developers like. City Development Corporation,
Omaxe and Vatika are aggressively tapping this niche market. Some
premium options in Pune like Panchshil Reality’s new development,
‘Waterfront’, will have unique features. Apartments will overlook
an expanse along the riverfront where a bird sanctuary is proposed
to come up.
The recent trends follow the belief that this high end clientele
are choosy and quality oriented and have a partiality for international
standard amenities and lifestyle. With easily available loans,
revised government policies and changes in investment laws that
allow NRIs to freely move their investments in and out of the
country has given pace to this trend.
The developers have matched up to the requirements by bringing
in a lot of interesting and innovative designs and styles. The
features include air-conditioning, concierge facility, maintenance
facility, high-end finishes, health club, swimming pool, landscaped
gardens and club house with sports facility, steam bath facility,
back up for lifts, staircase and lobbies. Super – luxury penthouses
with terrace garden and swimming pool are also on offer.
Apartments hold all kinds of necessary security features and
other amenities.
For the NRI investors, some the semi premium category apartments
are being booked to serve as a quality investment and security
option.
A project at Wakad in Pune is worth Rs 500 crore and being planned
for Californian style bungalows, row houses and apartments with
three million sq. ft being developed to provide the best of amenities.
Photo: Sonar Taree II East – Bengal Peerless Housing Complex – Prantik by Biswarup Ganguly, licensed under CC BY 3.0, via Wikimedia Commons.
