Factors That Are Redefining Pune's Real Estate Market
In spite of growing uncertainty post the Centre’s demonetization drive, Pune’s real estate market witnessed a revival in client sentiment because of numerous infrastructure developments. Primary growth drivers like the growth of road network, increased intra-city connectivity and the planned airport propelled the residential development on peripheral locations.
While many other cities are still trying to cope with recent reforms by the Government, Pune’s market displayed resilience. Though the city failed to post any important upward value movement, many internal micro-markets like Baner, Bavdhan, Kothrud, Pimple Saudagar and Sinhgad Road areas saw prices going up by 2-4%, year over year, as observed in many insight reports. Infrastructural development and business expansion impacted the rental market positively. Localities like Chikhali, Narhe, Moshi, Kharadi and NIBM Road saw average monthly rents growing by 10 per cent in general. Moreover, the progress towards a smart city mission played a vital role in engaging investors.
Consistent commercial (IT/ITeS hubs, CBDs, SEZs) and infrastructure development in Pune did not let investors get discouraged. Realtors of Pune have already realized the importance of several developments in the pipeline like Pune Metro Rail and another proposed Airport in Purandar area that may attract even more investors as well as for end-users in the years to come.
Here we explain to you the top factors that are redefining Pune’s real estate market.
Pune metro: With a budget around Rs. 11,522 Crores, Pune Metro Rail Project is now in speedy progress. Presently, the primary leg of the metro (from Kalyani Nagar to Shivaji Nagar) is in its middle stage of development and can take around 1.5 to 2 years to finish. The second section of the metro can cowl Pimpri-Chinchwad to Swargate (Inter-City Bus Stand). The primary section and second section are expected to be completed by 2020 and 2021, respectively.
Impact: Experts believe that the residential pockets of Bavdhan, Viman Nagar, Kothrud, Shivaji Nagar and Paud Road can gain mileage and report higher capital appreciation and rental yield once the completion of both metro rail routes.
Smart City: The Central Government has already unveiled 98 cities under the ‘Smart City Mission’ in India including Pune. A smart city is nothing but a developed town with many infrastructure and services wishlist like parks, wide roads, metro rail, economical transport system. A smart city is a city which uses information and communication technologies i.e. ICT to improve the quality and performance of metropolitan services such as transportation, energyand utilities in order to reduce the overall consumption, costs and wastage. 2020 can bring additional changes in the property market. The whole urban system is under construction and the city is carved out with all the general necessities for the people of the city.
Impact: Pune aspires to build a model neighborhood of livability and sustainability matching global standards within the hand-picked native spaces (Aundh-Baner-Balewadi – ABB) as well as New Kalyani Nagar, Hadapsar, Viman Nagar, Airport Road by fully deploying all 24 smart city options in a “future ready” manner. Future-ready is essential because as the estate develops, it'll undergo a 4x population growth by 2030 (from 40,000 to 160,000) which will definitely need homes ranging from 1 or 2 BHK flats in Pune.
Purandar Airport: A brand new international (proposed) airport in Purandar costing around Rs 2,000 crores is predicted to propel the housing demand and real estate landscape in adjacent areas like Hadapsar, New Kalyani Nagar and Magarpatta city. The airport is anticipated to have 2 runways of 4 km each. Around 3,000 acres of land is acquired for the project.
Impact: There'll be no immediate impact on the market but in the next year or so, areas like New Kalyani Nagar and Hadapsar will be the priority for investors as they will offer homes in a prime location.
This article introduced 3 of the higher-level factors that play a major role in moving the important estate market in Pune. However, there are more complicated elements that are available to play. And though a number of these aforementioned factors suggest a clear-cut relationship between the factors and the market, in practice & the results can be very different. However, understanding the key factors that drive the real estate market is crucial to performing a comprehensive analysis of a possible profitable investment.