By Soniya Gaonkar on May 19, 2022 7:51:57 PM
Over the years, client sentiment in Pune's real estate market has improved as a result of several infrastructure upgrades. Residential development on the outskirts was spurred by primary growth drivers such as the expansion of the road network, enhanced intra-city connectivity, and the new upcoming airport.
While many other cities are still adjusting to the government's recent reforms, Pune's market has shown resilience.
Despite the city's lack of significant upward price movement, numerous local micro-markets, including Hinjewadi, Baner, Bavdhan, Kothrud, Pimple Saudagar, and Sinhgad Road, witnessed prices rise by 2-4 percent year over year, according to many intelligence reports.
The rental market benefited from infrastructure development significantly. In general, average monthly rents increased by 10% in places like Hinjewadi Phase 3, Chikhali, Narhe, Moshi, Kharadi, and NIBM Road.
Pune's consistent commercial (IT/ITeS hubs, CBDs, SEZs) and infrastructure expansion encouraged domestic and international investors. Pune realtors have already recognised the significance of various upcoming initiatives, such as the Pune Metro Rail and another projected airport in the Purandar area, which may draw even more investors and end-users in the years ahead.
Here are the key variables that are reshaping Pune's real estate market.
1. Pune Metro Development
Pune Metro Rail Project is well underway, with a budget of roughly Rs. 11,522 crores. The first leg of the metro (from Kalyani Nagar to Shivaji Nagar) is almost complete. Pimpri-Chinchwad to Swargate is covered by the second segment of the metro (Inter-City Bus Stand). The primary and secondary sections are scheduled to be finished by 2022 end.
Impact of Pune Metro Development
Experts say that after both metro rail sections are completed, the residential pockets of Hinjewadi, Baner, Bavdhan, Viman Nagar, Kothrud, Shivaji Nagar, and Paud Road will gain mileage and report higher capital appreciation and rental yield.
2. Smart City Development
The Indian government has already announced 98 cities as part of its "Smart City Mission," including Pune.
A smart city is just a developed town with a long list of facilities and services, such as parks, wide highways, metro rail, and a cost-effective transportation system. A smart city is one that uses information and communication technology (ICT) to improve the quality and performance of metropolitan services such as transportation, energy, and utilities, with the goal of lowering total consumption, prices, and waste.
The housing market may see more changes in 2022. The entire metropolitan system is being built, and the city is being carved out with all of the basic essentials for the residents.
Impact of Smart City Development
By fully deploying all 24 smart city options in a "future ready" manner, Pune aspires to create a model neighbourhood of livability and sustainability that meets global standards within the hand-picked native spaces (Aundh-Baner-Balewadi – ABB) as well as New Kalyani Nagar, Hadapsar, Viman Nagar, and Airport Road.
Future-proofing is critical since, as the estate grows, the population will more than quadruple by 2030 (from 40,000 to 160,000), necessitating the construction of dwellings ranging from 1 to 2 BHK flats in Pune.
Purandar Airport Development
The new upcoming international airport in Purandar, estimated to cost roughly Rs 2,000 crores, is expected to boost housing demand and the real estate landscape in nearby places such as Hadapsar, Kharadi, New Kalyani Nagar, and Magarpatta city. The airport is expected to have two 4-kilometre runways. The project will need the acquisition of around 3,000 acres of land.
Impact of Purandar Airport Development
There will be no immediate influence on the market, but in the next few years, localities like New Kalyani Nagar, Kharadi and Hadapsar will be top of mind for investors because they provide properties in great locations.
So, what does it mean to you?
Even if the Covid 19 outbreak had an impact on the Pune real estate market, it is expected to rebound and bounce back faster than other tier-1 and 2 cities.
All of this means the city has a lot more to offer than you might expect. It's time to put the ancient adage to work: "Don't wait to buy real estate, buy real estate and wait."
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