There are many excellent reasons why more and more property investors are now focusing on Pune. This city, nestled between the Sahyadri mountain ranges and renowned for its excellent climate, no longer depends on its proximity to Mumbai in any respect. Pune is now home to large corporates that have no linkages to Mumbai whatsoever; its perfect blend of its manufacturing and services sectors and the rate of job generation happening here make Pune a standalone economic powerhouse. The city’s internationally reputed educational institutes attract young talent from all corners of India, providing Pune with a steady stream of new talent.
Pune also continues to be one of India’s most preferred retirement destination, though it can by no stretch of imagination be called a mere ‘Pensioner’s Paradise’ anymore. In fact, Pune has evolved into a leading hub for ultra-modern senior living complexes which have taken its standing as a retirement haven to a whole new level. Even so, the youthful element that really drives the city is hard to miss.
The primary drivers for Pune’s residential real estate market are its IT/ITeS and manufacturing sectors. In fact, Pune is rated among the top five Indian cities for employment generation and potential. The city is rapidly ramping up on social and physical infrastructure, and its social fabric is distinctly cosmopolitan. Pune now directly competes with Bangalore, Hyderabad, Chennai and Gurgaon when it comes to attracting prominent corporates.
The demand for homes comes largely from employees working in its IT/ITeS and manufacturing industries. These dual economic drivers give Pune’s residential property market an edge over cities which no not have such well-diversified demand.
The growing demand for homes in Pune has led to rapid expansion of its city boundaries. Not surprisingly, the central parts of the city have more or less exhausted their development potential. As a result, Pune peripheral suburbs and newly emerging markets are the new investment hotbeds, drawing considerable interest from residential property investors, who are drawn by the stable nature of this market as well as the fact that property valuations are showing very healthy growth.
This is, in fact, a very important consideration for property investors. Pune’s property market is not given to the kind of fluctuations that are visible in many other Indian cities, and maintain a constant upward trajectory regardless of larger economic considerations and influences. Property investors who are averse to risk choose Pune for precisely this reason.
The highest demand for homes in Pune is for properties priced in the budget range of Rs. 35-80 lakh, which draw the bulk of absorption from the middle class. However, there is also robust demand for premium offerings priced Rs. 1.5 crore and above coming from HNI buyers and investors. In fact, Pune is well-known for its high grade of luxury and ultra-luxury housing offerings.
Pune is also rapidly turning into the Township Capital of India. With more than 14 integrated township projects of various sizes executed or in the supply pipeline, Pune is the only Indian city with a well-defined integrated township culture. This is because home buyers in Pune are very receptive to innovative residential property solutions that allow them to live a more comfortable lifestyle. Because integrated townships are self-sufficient and self-supporting in terms of civic and social infrastructure, they offer the ideal solution to up-market property buyers. Townships are excellent investment options because they attract a high profile of end users and see the highest appreciation rates in a city where superior lifestyle quotient is a primary draw.
Overall, Pune’s residential market is looking forward to even healthier growth in the future. The city’s road network is being enhanced with infrastructural projects such as 170 km long Ring Road, and a number of malls are being launched in the eastern and the western parts of the city. These factors will not boost the city’s social and entertainment quotient in the peripheral regions and consequently drive up the demand for homes there.
Authored Article : Arvind Jain, Managing Director – Pride Group