By Soniya Gaonkar on Jun 23, 2021 5:31:22 PM
The growth of Pimpri Chinchwad (PCMC), which was predominantly an industrial area until the 90s, into a residential hub, and further, its proximity to Hinjewadi, transformed it into a central commercial zone. Today, PCMC is looked upon as a gold mine for commercial investment by investors across the state’s real estate sector.
So, if you are wondering, is buying a commercial property in Chinchwad a good investment? Or, is it good to invest in commercial property in PCMC? This blog serves as an answer as it discusses some of the benefits of buying commercial property in PCMC.
What is a Commercial Property – Who can Buy it?
Commercial property is a property that includes land, building, shop, offices, etc. bought and operated with an intention of generating profits either through rent or sale. Practically, anyone who has the financial muscle to buy a commercial property, who wants to generate additional income through rent, can buy a commercial property.
5 Benefits of Commercial Property Investment in PCMC -
1. Considerable Rent Earning Potential and Appreciation
Rent potential and rent appreciation are the two most significant factors that drive people towards making commercial investments in PCMC. However, the rent significantly depends on a range of factors that include the area, the size of the commercial space, the business opportunities in the vicinity, whether furnished, semi-furnished, or unfurnished, the diversity of use (for instance, if it can be converted into an office, or used only as a shop), etc.
For instance, the approximate average rent range of a 500 square feet commercial space in Ravet is around INR 30,000 to INR 35,000. On the other hand, the approximate average of an equally sized property in Pimple Saudagar is around INR 50,000 and INR 60,000. Nevertheless, this indicates that no matter the area, if it is well-connected with the other parts of the city and has a sizable residential area around, the rent prospects are potentially high.
Besides, PCMC enjoys a considerable annual rent appreciation. The yearly average is somewhere around eight to ten percent. Although yes, in some areas that are extensively developed in terms of residential growth, and entertainment options, etc., the appreciation rate might grow to become as high as 12-14% every year.
2. Decent Property Appreciation
Commercial appreciation is significantly dependent on residential growth. A lot of PCMC’s areas are currently undergoing tremendous residential development. Some of them include Wakad, Ravet, Pimple Saudagar, Rahatani, Punawale, Shahu Nagar, and Moshi.
Otherwise, villages or small agricultural settlements in the outskirts of PCMC, all these areas have grown into bustling towns. Although the appreciation rate of commercial properties is usually lower than that of residential properties, the rate usually depends on the site, and the annual average is around 5-6%.
3. Excellent Connectivity – Emergence of Metro
PCMC is well-connected to Pune and many other nearby industrial areas, and IT zones, including Chakan, Talegaon, Talawade, Alandi, Markal, Hinjewadi, Baner, Balewadi, Dehu Road, etc. through bus and various internal roads and the arterial Mumbai-Pune and Mumbai-Bangalore highway.
Additionally, a significant portion of the suburban railway network of the city runs through PCMC. It includes stations like Dehu Road, Akurdi, Chinchwad, Pimpri, Kasarwadi, and Dapodi, thus making it a well-connected city.
Besides, the emerging metro route that starts from Pimpri and connects other parts of the city, and beyond including downtown Pune is another significant potential benefit that is considered to work in favor of commercial property investors who have already invested or are looking forward to investing in PCMC.
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4. Rapid Residential Growth
PCMC is rapidly growing across each of its frontiers. The urban portion of the city, precisely in the 90s, was confined to Dange Chowk toward the south, Punawale, and Pradhikaran in the West, Bhosari in the east, and to some extent, Chikhali toward the north.
However, all these areas have now become residential development centers. And, the higher the residential growth, the more the number of businesses, and the higher the commercial income prospects.
Of course, in addition to these, residential development in areas such as Wakad, Pimple Saudagar, Rahatani, Kalewadi, etc., also contribute to help PCMC to maintain its commercial significance.
5. Presence of Numerous Industrial Areas Around
Image source: lokmat.com
It isn’t residential but also the significant industrial growth that makes PCMC a prospering commercial center. The presence of several industrial areas in and around the city includes Pimpri, Bhosari, Chinchwad, Talegaon, Talawade, Chakan, Markal, Alandi, and Pirangut, fosters the need for allied suppliers, and subsequently, the need for commercial spaces on rent in and around PCMC.
Additionally, the growth of PCMC into a critical IT hub keeps PCMC perpetually in demand as a potential commercial investment zone. As a result, depending on the type of commercial property you own and its size, PCMC allows you the opportunity to rent your space as a shop, office, outlet, showroom, or micro-manufacturing unit.
Is it Hard to Buy a Commercial Property in Pune, PCMC? Not When You Have Kohinoor!
Kohinoor Group offers a range of commercial properties in the Pune region such as Pimpri, Akurdi, Wakad, Ravet, and Chinchwad. It includes shops, showrooms, outlet spaces, offices in commercial as well as residential complexes.
Kohinoor’s customer-friendly experts explain everything to you and give you a clear picture of the estimated rent and property appreciation of a property. Besides, they acquaint you with each aspect associated with the property, thus also answering your question, what should I look for when buying a commercial property?
Kohinoor’s KWT (Kohinoor World Towers) is a prominent commercial center that offers commercial office space and shops for sale in Pune.
So, if you want to buy a commercial shop in Pune and PCMC, explore Kohinoor’s options, and make a sustainable choice from the viewpoint of rent, property appreciation, and location advantage. For details, call 020 6764 1839.