Pune Real Estate | The Complete Overview

June 22,2020 by Admin PB
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Pune Overview

Pune contributes to ~10% of the real estate market in the country and is one of the better-performing markets as compared to sluggish markets across the country.  Pune is ranked top in ease of living Index by the Ministry of Housing and Urban Affairs in India and has seen a steady increase in skilled workforce adding to the housing demand in the city.  Pune witnessed an increase of 25% in the new launches on a Q-o-Q basis for Q4 FY-20. Mid-segment was most dominant in terms of new launches with 71% of the launched units, followed by affordable and premium segments with 22% and 7%. Pune has witnessed an increase in absorption by 10% on a Q-o-Q basis as the city’s absorption levels continue to remain strong.

The Pune residential market is largely driven by office development. Hence, the distance from the workplace is an important criterion for a homebuyer. Hinjewadi, Kharadi, and Hadapsar are a few of the established office hubs in Pune, along with Baner-Balewadi and Symphony IT Park where future office supply is strong. Kharadi, Hadapsar, Mundhwa, Bavdhan, and Wagholi topped on this parameter, as they are located close to the IT hubs.

Additional factors supporting residential demand in the city are as follows

  • Absorption in office commercials ~6.5 million square foot
  • Industries ~3.8 million square foot
  • Retail 80 lakh square foot

India’s smart city mission gives impetus to the growth of Pune’s Infrastructure 

Construction of Pune metro phase I has resulted in price appreciation along DP road and Vidyapeeth Road. Construction of Phase II has resulted in an appreciation of property prices towards Baner-Pashanareas. Hinjawadi and Wakad have seen a 10% increase in launches in the last two years as compared to other locations of 

Residential Hotspots

Pune market has various hotspots which have seen exceptional sales and response from customers. Hotspots across Pune have been categorized as per the following factors which are of utmost priority to a resident/investor.

Connectivity

  • Access to MRTS
  • Distance from the nearest Business hub
  • Travel time during peak hours

The following micro-markets are have been the customer’s top priority while considering connectivity as the major driver to make their purchase decision.

Mundhwa | Kharadi | Bavdhan | Hadapsar | Marunje Road

These locations have seen some of the biggest launches in Q3 and Q4 of FY20. Puranik’sAbitante II in Bavdhan, Godrej’s Boulevard in Manjari/Kharadi, Gera’s World of Joy in Kharadi, KoltePatil’s Life Republic 1st Avenue at Marunje Road have performed exceptionally well in the last two quarters.

Quality of life

  • Access to primary and multi-specialty hospitals
  • Access to schools
  • Daily needs and shopping
  • Water & power supply
  • Access to malls, multiplexes, and organized F&B
  • Law & Security order
  • Access to recreational facilities

Top location while considering the quality of life as the decisive parameter has been

Hinjawadi | Wagholi| Wakad| Kharadi| Hadapsar

Megapolis Serenity by Kumar Properties in Hinjewadi, Opus 76 by Om Sai Properties in Wakad, Ganga Serio in Kharadi have been a few of the biggest launches in the last six months.

Market Factors

  • Market attractiveness
  • Price appreciation in the last 2 years
  • Presence of good developments, developers
  • Sales velocity

Mundhwa, Bavdhan, Gahunje, and Wagholi witnessed the maximum price appreciation in the last three years. Most of this price appreciation can be attributed to the construction of metro lines and the ring road. Market attractiveness and sales penetration indicate the demandfor these locations. Mundhwa was the most attractive location in terms of market attractiveness as it is strategically located between Kharadi and Mundhwa office hubs.

Top location considering the market factors are

Kharadi | Bavdhan| Gahunje| Undri| Mahalunge | Mundhwa

Godrej Hillside in Mahalunge, VTP’s Pegasus in Kharadi, has performed well in these markets.  Real estate parameters especially in terms of pricing and availability of good projects, are very important to drive sales in a location. Average price appreciation in Pune acrosslocations ranged between 1% and 5% y-o-y depending on the demand during the last three years.The most prominent and preferred geographies of Pune have shown in the following map.