Kishor Pate, CMD – Amit Enterprises Housing Ltd. And Hon. Secretary – CREDAI (Maharashtra)
The city of Pune is now a sparkling jewel on the crown of Indian real estate. It has undergone a constant transformation over the past few decades – from a simple, rural community to a military base, and on to one of the most sought-after cities for property.
Industrialization and Expansion
Pune was radically transformed when the effects of rapid industrialization took hold. The Maharashtra Industrial Development Corporation (MIDC) paved the way for this advancement; real estate development followed, with residential properties gaining more and more demand even as the groundwork of business offices was put in place.
A city’s progress involves ever-increasing workforce, which in turn requires housing. Residential property development brings with it the need for commercial establishments where people can buy their supplies or spend time in leisure activities. As Pune became more industrialized, the market for residential, business and retail property grew simultaneously. The die had been cast, and the city’s growth curve was ascending constantly.
Business prospects and job opportunities increasingly abounded in Pune, causing more people to move in from other cities and rural areas. It became a city where people could find work, earn their living, educate their children and retire in peace and prosperity.
The Role of the IT Industry
Property development in Pune quickly increased with the increasing presnece of IT/ITES busineses. There was an upsurge in the demand for commercial real estate, since IT companies needed places of business. As this industry was established in Pune, economic advancement came rapidly.Various IT companies – both from the country and from around the globe – began to set up their offices in the city.
Prominent IT-related commercial projects and catchments soon became part of the cityscape, with some of the most prominent being the Hinjewadi IT and Software Park, Magarpatta CyberCity and the EON IT Park in Kharadi. This evolution also brought with it an evolution in the demographics of property buyers in Pune.
The Information Technology industry attracts and grooms ambitious, technologically-inclined young adults who invariably end up drawing sizeable salaries. More and more NextGen people could afford better housing options, leading to increased demand for upscale residences in Pune.
Pune’s territory expanded in order to deal with the rising demand for more residential areas and commercial centers. A number of the adjacent towns and settlements such as Baner, Kharadi, Wakad, Warje and others were included within its city limits and became legitimate parts of the city.
These previously insignificant parcels of land, particularly in sites along the Solapur-Nagar Road Bypass, soon turned into real estate goldmines to which property development made a beeline.
Today, Pune’s progress has made it an ideal location for local property developers and construction companies. HOwever, it has also attracted national and international builders who are keen on catering to the ever-growing demand for quality housing in Pune.
Housing Trends in Pune
Pune was once a city in which most of the demand was for single-family detached houses. As the city’s population expanded, apartments and duplexes became increasingly common. With the proliferation of the nuclear family concept, two, three four bedroom apartments are now extremely popular.
The city has come a long way from its traditional residential configuration – the multi-family ‘wada’ (several individual residential units built around a common courtyard.) Today, most of these have been replaced by apartment blocks – though many of Pune’s more traditional area still have’wadas’.
Today, Pune’s citizens have greater purchasing power than ever before, and their requirements and demands have risen proportionately. Also, the easy availability of home loans has made the goal of buying property much more accessible.
There is definitely a growing market for affordable apartments as well as upscale residences. An increasing number of people aspire to own their own homes these days rather than taking the rental housing option.
Today, Pune’s major residential property markets include Kalyani Nagar, Viman Nagar, Kharadi, Wanowrie, Baner and Undri. While Kalyani Nagar and Viman Nagar are quickly reaching saturation point, areas like Wanowrie, Baner and Undri still have a lot of development potential.
Baner has quickly become one of the primary hotspots for growth, since it offers several location benefits. It has a perfect blend of residential demand influencers. In the first place, it is close to the IT Park at Hinjewadi, which generates a lot of demand for quality housing from IT/ITES professionals.
Baner’s proximity to the Mumbai-Pune Expressway as well as the Mumbai-Bangalore highway is very significant. Aundh, University Road and Deccan Gymkhana are within easy commuting distance, which ensures that buyers into this project have easy access to entertainment, healthcare and shopping facilities.
Upscale residences can be primarily found in Koregaon Park, Boat Club Road, Kalyani Nagar, BT Kawade Road and Sopan Baug. Homes located in Kothrud, Warje, Undri, Wanowrie, Mundhwa, Baner and Hadapsar are the preferred destinations for middle-income home seekers. However, many of these areas now also have premium housing options available.
Pune’s investor market for residential property is steady and growing constantly. Compared to Mumbai, demand for residential property in Pune has remained quite robust. In fact, property prices in the city have risen by at least 12% in most locations with good infrastructure over the last six months.
There is a lot of investor activity, but Pune’s residential property market is still riding primarily on genuine homebuyer demand, with sales in this segment amounting for almost 62% of the overall sales. The rest comes from investor sales.
The investor profile is quite interesting because of how it changes according to location. In areas like Baner, Wakad and Hinjewadi, most of the investor enquiries come from Mumbai.