Bottom Line: Pune has successfully preserved its distinctiveness as an academic hub for many years be it in the management domain or film creation. Realtors of Pune believe that the quality supply of education has been one of the expansion simulators for the city’s real estate business. BramhaCorp a trusted builder in Pune delves deeper to decipher how education has played a key role in facilitating end-user demand and realty growth in Pune.
Pune also named as ‘The Oxford of the east’. A recent study by Economic Times and TRA analysis strengthened this title by listing Pune among India’s top 10 rising academic hubs for higher studies. As per this survey, Pune is one of the favorite cities for arts (ranked 4), commerce/accountancy (ranked 5), science (ranked 8) and management (ranked 10) courses. At present, Pune allocates over 100 institutes and 9 universities.
Establishing an affiliation between the presence of those institutes and property, the growing trend of MNCs moving into town, Pune Realtors have started establishing themselves in areas that have direct access to institutes by personal and public transport. The students that exist around schools and colleges absolutely impact the demand for residential areas as well as restaurants and small retail stores.
In an opinion of Realtors of Pune, prime education-driven locations in Pune are Kothrud, Erandwana, Shivajinagar, Wadgaon Sheri, New Kalyani Nagar, Kharadi, NIBM Road etc. and on the outskirts of Pune, like in Mulshi and Lavale, because of the provision of land and green space. Hence, the demand for property in these locations is additionally on the rise.
Effect on Residential Properties
According to the Ministry of Housing and Urban Affairs (MoHUA), Pune now ranks #1 in ease of living index. With the best variety of software companies is followed by Bangalore and Hyderabad. The big chunk of fresh talent provided to these firms comes from Pune’s educational institutes. Youngsters, because of the growing Information Technology (IT) demand in the town, like studying and then operating here. As a result, the youth find it a lot of cheap to buy homes in a prime location (through the home loan) in Pune than staying in a rented flat.
This contributes to the residential demand in the town and for that reason; capital costs are higher in locations on the brink of educational hubs. However, these prices are comparatively affordable in contrast to employment hubs of Mumbai, Bangalore and Delhi.
A number of students who move in Pune with education loans prefer rented accommodations and homes in a prime location. Due to having various institutes in proximity, several localities have seen better civic and social infrastructure development within the last few years. As a result, Pune’s peripheral suburbs are positioned as the most popular rental markets.
We have seen localities like Hadapsar, Ambegaon and Akurdi witnessed a noteworthy growth in rental values throughout the last quarter. Akurdi led the rental market with a massive 14% rise. Proximity to prominent academic institutes is the major growth stimulator for these residential belts. Hadapsar and Ambegaon also benefited from having various academic centers and schools in the vicinity.
What about the investor sentiment?
Some property experts say that proximity to educational institutes results in a better capital appreciation of areas surrounding academic bodies. this can be evident by the appreciation of capital values in east Pune localities such as Katraj and Baner as compared to different localities that aren’t connected with academic establishments and witnessing a value correction. The principle behind it is that a home-buyer continually prefers residential properties set near an academic institute and are ready to pay higher rates for them.
Recently the Real Estate Market of Pune was prying a boring phase, in spite of that a few eastern Pune localities like New Kalyani Nagar, Kharadi and Koregaon Park proved to be a saving grace and managed to get around 15 to 25% appreciation in recent years. So for the upcoming few years education can still be a lucrative and game-changing asset for the real estate market in Pune.