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1
PUNE RESIDENTIAL REAL ESTATE OVERVIEW
MARCH 2016
2
TABLE OF CONTENTS
1. Executive Summary 3
2. City Fact File 4
3. Real Estate Overview 6
5. Central Pune 11
4. North Pune 14
5. East Pune 17
6. West Pune 20
7. South Pune 23
8. Location Attractiveness Index 25
9. Disclaimer 26
3
The Pune Real Estate Overview March 2016 takes a look at the key micro-markets and the growth
stimulators from a residential perspective. The report highlights the key findings of a week long
survey of the residential market conducted by the ICICI PSG Team.
Residential real estate prices in Pune are expected to remain stable in the short run and
likely to see a 10 - 12% appreciation in the long run owing to increasing input costs to the
developers, coupled with increased demand from cities nearby Pune and NRIs.
Growth in real estate prices in Pune is expected to be positive as it continues to be an IT,
education and manufacturing hub, which will offer significant employment opportunities
and keep the end user demand ticking in this city.
Commercial office absorption in Pune saw a healthy uptake in the past year indicating a
favourable market for residential realty absorption.
During the current survey, a peculiar trend observed among Pune realty developers was
that of projects being launched in the affordable range of INR 45-65 lakhs to match the
changing demand dynamics.
Pune real estate market which used to witness a balance of investor and end user demand
in the past has now seen the demand skewing towards end users.
Although the major demand driver is the end user population residing in old Pune and
that working in Hinjewadi IT Park & manufacturing hubs of East Pune, the market also sees
a considerable demand from Mumbai, NRI’s and buyers from cities nearby Pune such as
Ahmednagar, Nashik, Kolhapur, Solapur, Satara and Karad.
Apartments in Pune have witnessed a contraction in the configuration sizes, to match the
budget of end-users.
Off late, East Pune has emerged as a preferred residential destination. Residential market
in East Pune is being driven by a mix of BFSI, IT and BPO industries in Kharadi, Viman
Nagar, Magarpatta Cyber City and Kalyani Nagar and manufacturing hub of Ranjangaon.
Residential developments in Kharadi, Wagholi and Keshavnagar have particularly seen a
steady investor demand in the past year.
Developers have been increasingly tapping the international market for investor demand
from NRI buyers and are running road shows and marketing campaigns in countries like
Singapore, Australia, Hong Kong, Middle East and as far as the United States. Developers
are exploring innovative digital marketing platforms such as designing apps while also
focusing on their product strategy to offer right-sized and right-priced products.
The government has taken numerous initiatives with respect to infrastructure
development to decongest Pune traffic and provide easy accessibility to various areas and
cities. Construction of a number of flyovers and link roads has already improved the
accessibility in various parts of Pune; while, plans are underway for construction of Pune’s
Ring Road, expansion of the airport, numerous subways and flyovers.
Overall, the sector is expected to register a positive growth over the long run driven by
favorable reforms by the new single majority government at the Centre and commercial
growth potential of this city into an IT, education, automobile and manufacturing hub.
EXECUTIVE SUMMARY
4
Overview:
Pune has been known by a plethora of sobriquets. Popular among them: Queen of the Deccan,
cultural capital of Maharashtra, pensioner's paradise and Oxford of the East. Pune is one of the
historical cities of India with a glorious past, an innovative present and a promising future.
Human civilizations have prospered on the banks of rivers; Pune city too has flowered on the
banks of the Mutha River originating from the Sahyadri range of mountains. Researchers have
found evidence of human civilizations that existed 100,000 years ago along the Mutha River.
Down the centuries, Pune has been ruled by several dynasties. The earliest evidence found
(copper plates of 758 A. D. and of 768 A. D.) reveals that the Rashtrakootas ruled this region then.
At that time, Pune was referred to as Punaka Vishaya and Punya Vishaya. Copper plates of 960 A.
D. and 963 A. D. refer to it as Punaka Wadi and Punaka Desha. Here Vishaya means region. Later
on, the city has been mentioned as Kasabe Pune. The Pune Gazetteer explains the term Pune as
Punya - a holy place. In Hindu tradition, a confluence of two rivers is sacred. Hence, this city,
where there is a confluence of two rivers (Mula & Mutha), is Punyanagari. The Ministry of
Environment has recently signed a loan of INR 100 crores with Japan for a project to clean Mula –
Mutha River. After the Rashtrakootas, Pune was ruled by the Yadava dynasty. After the fall of this
dynasty, it came under Mughal Empire till the middle of the seventeenth century. The great
Maratha leader Shivaji later made Pune the capital of the Maratha Empire - he established in the
17th century. After Shivaji’s death, his heirs could not hold his empire together and so their
dynasty declined and power passed to the Peshwa, the first of a long line of professional
administrators. Under the Peshwas, Pune acquired great political importance and became well
known as a centre of learning and culture. Pune remained the seat of the Maratha fiefdom till the
British ousted them in 1817 after the historic third battle of Panipat.
Over the years, Pune developed into a major industrial center with defense, automobile and
engineering giants and other factories and corporations making it their base. Pune is also among
the greenest urban areas in the country with more than 40 per cent of its area under green cover.
`Oxford of the East’ to `Detroit of India’
Known as the ‘Oxford of the East’, Pune is home to a large number of well-known educational
institutes, among them are the prestigious Pune University with its affiliated colleges such as
Fergusson College and College of Engineering. In recent years several deemed universities have
also come up, and the number of colleges continues to grow. The SNDT University for Women
was established in 1916. The Bhandarkar Oriental Research Institute, established in 1917, is now
famous for its research on the Prakrit and Sanskrit languages; over 20,000 ancient manuscripts
are housed at this institute. In the latter half of the 20th century, the National Defense Academy
and the National Chemical Laboratory were established in the city.
Over the years, the automobile industry has gained prominence in Pune, giving it the title of the
`Detroit of India’. Among the automobile companies that operate out of Pune are Bajaj Auto, Tata
Motors, Daimler Chrysler (Mercedes Benz), Kinetic Engineering and Force Motors Ltd. In addition
the city witnesses a dominant presence of IT and software companies, primarily operating out of
Hinjewad & Kharadi.
CITY FACT FILE
5
Administration:
Pune’s urban agglomeration, also known as the Pune Metropolitan Region (PMR), is spread over
3,500 sq. km and consists of the Pune Municipal Corporation (PMC), Pimpri Chinchwad Municipal
Corporation (PCMC), Pune Cantonment and Kirkee (Khadki) Cantonment. The development of the
PMR is undertaken by various agencies, such as the PMC, PCMC, the Public Works Department
(PWD) and others. Earlier this year, the Government of Maharashtra notified of the formation of a
regional development body, called the Pune Metropolitan Region Development Authority
(PMRDA) to overlook the various infrastructure projects in Pune. Currently, the PMRDA is in the
process of preparing an integrated development plan (DP) for the entire region, which will
eventually replace the individual development plans of the various local bodies, including the
PMC and PCMC. The PMRDA may also be responsible for major infrastructure projects, such as
the metro rail and outer ring roads. The PMRDA has also proposed to expand its jurisdiction from
3,500 sq. km to 7,000 sq. km by including more villages in its limits and thereby promote their
development.
Census 2011 Key Highlights
Source: Census 2011
Description 2011 2001
Actual Population 9,426,959 7,232,555
Male 4,936,362 3,769,128
Female 4,490,597 3,463,427
Population Growth 30.34% 30.73%
Area Square Km 15,643 15,643
Density/Square Km 603 462
Proportion to Maharashtra Population 8.39% 7.47%
Sex Ratio (females per 1000 males) 910 919
Average Literacy Rate 87.19% 80.45%
Male Literacy Rate 92.72% 88.34%
Female Literacy Rate 81.13% 71.89%
CITY FACT FILE
6
Short Term
10-12
months
Steady capital values with steady absorption of units
Long Term 50-60
months
10-12% Y-o-Y appreciation in capital value with an upward bias on a
conservative note
We expect the capital values in Pune to remain steady at current levels with a 10-12%
appreciation seen in the long term. The capital values price growth in Pune has fallen from above
12% to less than 2% over the last three years. This is because the developers in Pune are
focused on selling the unsold inventory and very few launches are being announced. While Q2
and Q3 of CY2015 saw a steep decline in new launches, launches in Q4 CY2015 picked up some
pace. However, the average quarterly value of launches on a Y-o-Y basis fell by ~40% owing to
the fall in new launches over the year coupled with correction in capital values of new launches.
Pune’s residential real estate market sales volume increased marginally by ~3% during 2015 as
compared to the previous year. Developers already owning huge land banks are the ones
launching new projects with increased focus on compact homes at affordable prices. This further
added to stagnation of prices. Pune, therefore, provides an ideal buying opportunity for
homebuyers. (Source: PropEquity)
Source: PropEquity
Residential real estate prices in Pune are expected to see a 10 - 12% appreciation in the long run
owing to increasing input costs to the developers, coupled with increased demand from the
peripheral cities of Pune and from the NRIs. In the long run, growth in real estate prices in Pune is
likely to be positive as it continues to be an IT, education and manufacturing hub, which will offer
huge employment opportunities and keep the end user demand ticking in this city.
PUNE REAL ESTATE
7
Demand demographics in the Pune real estate market
Pune real estate market is currently witnessing an end user demand. In the end-user segment,
mid – segment housing in the budget range of (1.5 mn – 4.5 mn) witnessed a healthy absorption
in 2015. This market has a fair presence of retail investors primarily demanding residential spaces
around the IT Hub of Hinjewadi and manufacturing hub of West Pune. According to our survey,
the buyer space comprises of 60% of the participants from Pune, 20% from Mumbai and 20%
comprised of the demand emerging from NRIs and from cities within the radius of ~300 - 350
kms from Pune.
Demand and Supply of Units (Based on Ticket Size)
INR 1.5 – 4.5 mn INR 4.5 – 7.5 mn INR 7.5 – 10 mn INR >10 mn
Absorption (as a % of
total sales) 54% 31% 9% 6%
New Launches (as a %
of total supply) 62% 28% 7% 3%
Source: PropEquity
Note: Absorption and supply figures are for CY2015
The above table shows that the maximum demand in the INR 1.5 mn – 4.5 mn category homes
was matched with proportionally higher new launch supply indicating increased focus on
launching affordable homes. While the new launches in other price brackets saw a decrease as
against the respective demand especially in the luxury segment of ticket sizes >INR10 mn. This is
because buyers were still on fence with respect to the buying decision at current price levels.
Compact ready-to-move in homes is the new popular buy among end-users
Compact homes, mostly 2 BHK, with basic modern amenities at affordable prices are in popular
demand of the end-users in Pune. As Pune is emerging as an IT hub, most of the working crowd
is predominantly in the age group of 25 - 35 years. 2 BHK’s are being preferred by working
professionals supported by the double family income of the husband and wife employed in these
IT-BPO companies; thus making this configuration affordable. Similarly, ready-to-move in
apartments are in higher demand among first-home buyers as a cautionary measure against
project completion delays. Approximately 57% of total residential sales in CY2015 comprised of
2 BHK units. (Source: PropEquity)
Pune continues to appeal as a weekend getaway for Mumbaikars owing to the pleasant climate
Pune scores over Mumbai, as the climate in the former is more pleasant, as it is situated on the
leeward side of the Western Ghats while the climate in Mumbai is humid throughout the year.
Owing to the above two factors, Pune has famously become a `weekend getaway’ and preferred
investment destination for Mumbaikars who want to retire over the weekend in spacious homes
and enjoy a cool, pleasant climate.
Pune also offers more spacious apartment configurations relative to Mumbai, at much affordable
prices. Moreover, Pune is just 3 - 4 hour drive away from Mumbai and is connected by the NH 4
highway.
PUNE REAL ESTATE
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Many developers have taken a note of this demand arising from Mumbai and have launched
projects at the foothills, in vicinity of a forest land and natural water bodies. Developers such as
Paranjpe Schemes, Skyi, Marvel Group, Gera are building such landmark properties and villas to
attract the above customer segment.
East, West and South Pune are the most attractive buys
Currently, East Pune, West Pune and South Pune are proving to be the major crowd pullers.
East Pune remains the most developed area of Pune and is being largely driven by the CBDs in
Kharadi, Viman Nagar, Magarpatta Cyber City and Kalyani Nagar. A mix of BFSI, IT and BPO
companies is present in this section of the city in addition to major retail stores, all leading malls
and hospitals. Kharadi in East Pune is slated to become the most sought after CBD after
Magarpatta City due to its world class development into a commercial and residential zone. East
Puen is currently seeing a demand flowing in from the nearby manufacturing hubs like Shikrapur
and Ranjangaon which houses companies such as LG, Whirlpool, 3M, etc. This manufacturing
hub has generated immense buyer interest in nearby Wagholi and Keshavnagar area due to
availability of affordable options.
West Pune is being largely driven by demand emerging from the IT hub and SEZ’s concentrated
in Hinjewadi. Six townships are under construction in and around this area; namely, Megapolis
(150 acre township), KUL Ecoloch (110 acres township), Kolte Patil Life Republic (421 acres
township), Paranjape Blue Ridge (140 acres township), Lodha Belmondo (108 acre township) and
Xrbia (200 acres township). Investors from Mumbai and peripheral cities are attracted to West
Pune primarily due to good rental yields, and easy access from Mumbai-Pune Expressway for
personal ‘weekend getaway’ use.
South Pune in the past one year has seen immense sales traction due to government’s
announcement of new villages being taken under the purview of PMRDA to improve the
infrastructure in these areas. South Pune also has an availability of affordable compact homes in
Undri and Pisoli which lie on the Pune - Solapur highway.
Pune developers trying to tap demand from nearby cities and NRIs
Developers in Pune have increasingly started tapping the investor demand from NRI investors
and have launched road shows and marketing campaigns in countries such as Singapore,
Australia, Hong Kong, Middle East and as far as the United States. Developer specific property
exhibitions are also a peculiar characteristic of property marketing in Pune. In addition,
developers have realized the importance of channel partners and web presence to boost their
sales. Developers in Pune are exploring innovative digital marketing platforms such as designing
apps that enable a live chat with the sales team without having a customer to be physically
present to see/book a property. Further, some developers in Pune are offering branded
properties (first Trump Tower and Yoo residences of India were introduced in Pune) that have an
aspirational value which attract the who’s who of the society. Thus, developers in Pune are
experimenting with their offerings to test customer preferences and cater to a wider range of
customers.
PUNE REAL ESTATE
9
Planned Infrastructure development in Pune
The government has taken numerous initiatives with respect to infrastructure development to
decongest Pune traffic and provide easy accessibility to various areas and cities.
Ring Road: Pune Ring Road is a circular road for Pune city proposed by Chief Minister of
Maharashtra in 2007 to avoid traffic congestion in the city of Pune. This proposed Ring Road is
~170 Km road long and is divided in 4 parts to divert vehicular traffic from Mumbai-Pune-
Solapur highway and roads like Pune-Nashik, Pune-Ahmednagar and Pune-Satara otherwise
passing through the city. The preparation of a detailed project report is underway and the project
is expected to see completion by 2020.
Bus Rapid Transit System (BRTS): The BRTS in Pune connects various prime areas of Pune and
is aimed at decongesting the traffic on main routes within Pune. The BRTS between Aundh to
Ravet and between Sangamwadi and Vishrantwadi became operational in 2015 while rest of the
bus routes (Kalewadi Phata-Dehu Alandi, Nashik Phata-Wakad, Nigdi-Dapodi, Nagar Road) are
expected to be completed in 2016-17.
Pune Metro Project: Pune Municipal Corporation (PMC) has submitted the proposal to the Union
government to make provisions in the annual budget for the Metro project under which a special
purpose vehicle (SPV) - Pune Metro Rail Corporation (PMRC) will be formed, to execute the
project. It will be executed in form of 4 lines running across north-south and east-west of the city.
The project is currently at pre-bidding stage.
PCMC Infrastructure: Pimpri-Chinchwad area is already known to have world-class infrastructure
with respect to the road network which provides uninhibited access to various areas in this
region. Efforts are in place to replicate this model in the upcoming areas of Pune.
Connectivity to Hinjewadi: While the road from Sus to Hinjewadi Phase 3 has become already
operational, plans are upbeat to connect Hinjewadi via Baner-Balewadi road to improve the
existing accessibility to Hinjewadi which will benefit all those who travel to the three phases of
the IT Park.
In addition to above developments, real estate dynamics of the city have improved owing to
numerous flyovers and subways being constructed in different parts of the city such as
Shivajinagar and PCMC. Widening of roads particularly around Wakad, Pimple Saudagar
Hinjewadi and other prime locations has been taken up to rid the city of all possible bottlenecks.
With the above initiatives to improve external accessibility, each micro-market in Pune is also in
the process of becoming self-sufficient internally too. All the micro-markets are witnessing set up
of all major retail outlets, entertainment destinations, restaurants, etc. which is likely to eliminate
the need to move to the CBD’s in the long run.
Pune remains a robust real estate market
During our survey, one of the key points observed was that of a cautionary stance on part of both
buyers and developers to avoid any hasty decisions. Developers are trying to venture into
projects only after factoring in their capacity to deliver and developers owning land banks are the
only ones launching projects to offset high land prices. Also, they are releasing supply into the
PUNE REAL ESTATE
10
market after gauging the demand for units; thus, building a higher holding capacity. Likewise,
buyers have resorted to doing a detailed research of available options, due diligence of the
builder and the project, before booking any property. Therefore, absorption of units was seen at
average levels.
A new noticeable feature of the market is that of developers launching products of right-size and
right-price to maintain sustained cash-flows by focusing on volume sales. At the same time,
developers have introduced many offers in conjunction with home finance companies and banks
to cater to the customer who wants a flexible payment scheme to buy a property with minimum
or maximum own contribution. These strategies are aimed at boosting the sales volume.
Overall, the sector is expected to register a positive growth over the long run driven by favorable
reforms by the new single majority government at the Centre and commercial growth potential of
this city. This is going to be supported by the growth momentum in the IT industry in West and
East Pune and the flourishing automobile industry in North Pune. In addition, demand from
Mumbai, NRI’s and nearby cities of Pune is expected to keep the demand buoyant in this market.
BRTS Pune
PUNE REAL ESTATE
11
Major Locations within Pune
We have classified the real estate space in Pune into five distinct zones – Central Pune, North
Pune, East Pune, West Pune and South Pune.
Central Pune: Apte Road, Bhosale Nagar, Deccan, Model Colony, Prabhat Road, Shivaji Nagar
North Pune: Akurdi, Bhosari, Chakan, Chinchwad, Moshi, Pimpri, Pradhikaran, Talegaon
East Pune: Boat Club, Bund Garden Road, Hadapsar, Kalyani Nagar, Keshavnagar, Kharadi,
Koregaon Park, Manjri, Wagholi, Viman Nagar
West Pune: Aundh, Balewadi, Baner, Bavdhan, Hinjewadi, Kothrud, Pashan, Pimple-
Saudagar, Wakad
South Pune: Ambegaon, Katraj, Kondhwa Budruk, Mohammadwadi Road, NIBM, Parvati,
Salisbury Park, Sinhagad Road, Warje, Wanowrie
MAJOR LOCATIONS IN PUNE
12
Major Locations: Apte Road, Bhosale Nagar, Deccan, Model Colony, Prabhat Road, Shivaji Nagar
Key Highlights:
Central Pune is classified as the Commercial Business District of the city having a presence of
number of offices and residential areas such as Dhole Patil Road, Model Colony, Prabhat Road
and Bhandarkar Road.
The area is one of the prime residential locations of Pune and is home to the famous Pune Law
College and Fergusson College (FC), Sancheti Hospital and many Government offices and courts.
Land availability in the central city is limited and there are no major residential developments
taking place in this part of Pune.
The area, however, continues to witness some standalone redevelopment projects at Prabhat
Road and Model Colony and commands a premium over other residential locations in Pune.
Redevelopment projects by Paranjpe Schemes, Amar Developers and Nimhan Group are some
of the residential projects coming up in the area while Pinnacle Group, Alliance Group, Rachana
developers, Javadekar developers, Oxford Properties and TCG are the prominent developers in
Central Pune.
Growth Stimulators:
Deccan is a cultural district and houses many art galleries, theaters and cinema halls. Deccan also
an educational hub of Pune, comprises of the areas of J.M. Road, F.C.Road, University Road, Law
College Road and Senapati Bapat Road.
Shivaji Nagar is close to Pune Railway Station and houses corporates like L & T Infotech and
institutes like Indian Institute of Planning and Management, Fergusson College & Modern College,
etc.
J.M. Road and F.C. Road are the most prominent high streets of Pune having all major retail
outlets. Prominent retail players such as Central and Shoppers Stop are also located here.
Residential areas in Central Pune still attract a premium as the location has an age old charm and
has always remained the most desirable residential address.
Price Trends in Central Pune
Source: PropEquity
Note: Graph represents weighted average price of residential units available in the primary market. Missing line segments indicate
unavailability of residential units in the primary markets during the specified time frame.
CENTRAL PUNE
13
Property rates of 'ready-to-move in' in prime residential markets of Central Pune**
Location Average Capital Values (INR
/sq. ft.) Rentals for 2 BHK (INR/month)
Prabhat Road, Deccan
Area, Apte Road 14,500 – 15,500 27,000 – 30,000
Model Colony 13,000 – 15,000 25,000 – 27,000
Bhosale Nagar 11,000 – 13,000 24,000 – 25,000
Source: ICICI Property Services Group
**indicative mid-market segment
Fergusson College
CENTRAL PUNE
14
Major Locations: Akurdi, Bhosari, Chakan, Chinchwad, Moshi, Pimpri, Pradhikaran, Talegaon
Key Highlights:
North Pune lies on the Pune – Mumbai highway (NH-4) and Nashik Highway. It is one of the
biggest industrial zones of India.
The main localities in this micro-market are Pimpri, Chinchwad, Akurdi, Nigdi, Moshi, Pradhikaran
and Bhosari.
Pimpri – Chinchwad region which includes Pimpri, Chinchwad, Nigdi, Akurdi, Ravet, Bhosari,
Moshi and Punawale, houses many auto, food & pharma machinery manufacturing and
engineering companies in addition to a number of SME’s while Chakan & Talegaon are home to
global automotive and construction equipment manufacturers.
PCMC boasts of excellent infrastructure connectivity with Central Pune via an array of flyovers.
These flyovers run upto Nashik Phata. Bhosari is located on the right side of this flyover while
Pimple Gurav lies on the left.
A new flyover connects the city center of Chinchwad directly with Bhosari. Bhosari also enjoys a
direct connectivity to West Pune via a flyover to Pimple Gurav.
A high level of employment due to a number of manufacturing and engineering companies in the
vicinity has pushed residential development in Bhosari, Moshi and Chikli which are fast getting
transformed from a LIG segment market to MIG segment. Of late, some well-known developers
have entered Bhosari, Moshi and Chikli and offer residences at affordable prices.
Apart from multi-storied residential colonies some areas in Bhosari house bungalows and row
houses owned by the business families having their companies located in PCMC. Moshi and
Chikli are preferred locations of the local community in addition to the employees working the
nearby industrial zone. Bhosari, Moshi and Chikli have excellent infrastructure and are
strategically located between Bhosari MIDC, Chakan MIDC and Pimpri Chinchwad MIDC.
The development of Chakan and Talegaon is promoted by the Maharashtra Industrial
Development Corporation (MIDC). Talegaon & Chakan have evolved into a major automobile &
manufacturing hub and host production plants for General Motors, JCB, John Deere and the
Volkswagen Group, Mercedes, Mahindra & Mahindra, Bajaj Auto, Bridgestone respectively. Over
750 large and small industries, including a number of automobile component manufacturers are
based in this area.
Residential development in Chakan predominantly attracts the LIG segment employed in the
nearby industrial zone. Whereas, Talegaon houses a mix of LIG and MIG segment as it boasts of
a very pleasant climate, proximity to Mumbai – Pune Expressway and themed residential
developments.
Pradhikaran in Nigdi suburb of Pune is a planned township mostly comprising of luxury
residential projects, bungalows and plots. Pradhikaran comes under the P.C.N.T.D.A. (Pimpri
Chinchwad New Township Development Area) and is divided into several sectors. This area
attracts interest from the HIG segment particularly from those people having businesses in in and
around Pimpri – Chinchwad.
Nigdi is well connected to rest of Pune via Akurdi and Chinchwad railway station of Pune
Suburban Railway and PMPML bus services plying across Pune.
Contributing to the residential supply on the other side of North Pune are the Charoli and Dhanori
NORTH PUNE
15
areas which are witnessing a number of township projects by known developers. The
development in this area is trying to bank on the location’s excellent connectivity to Central and
West Pune and proposed Pune Ring Road.
Some of the new projects in North Pune are being developed by Nyati Group, Pharande Spaces,
Pride Purple Group, Kohinoor Group, Kasturi and Kumar Properties while Mindspace Realty,
Naiknavare, Namrata Group and Goel Ganga are some of the prominent developers in this
micromaket.
Growth Stimulators:
Chakan in North Pune is touted as India’s biggest manufacturing growth centre as Hon. Prime
Minister Narendra Modi called upon investors to take advantage of the benefits offered by this
industrial zone and various supporting reforms. The development of Chakan has been aligned
with the ‘Make in India’ initiative as GE and other multinational companies are expanding their
operations in this region. Thus, nearby industrial zone and automobile hub in Chakan and
Talegaon are expected to raise the employment levels in this region further boosting the
residential demand.
Excellent infrastructure and connectivity to Central and West Pune are the key positives of this
area.
Accessibility to the Technology Park (Talawade), IT sector (Hinjewadi) and other industrial areas
(Talegaon, PCMC) is likely to propel the real estate growth in Pimpri-Chinchwad and nearby
areas.
Talawade has IT companies like Syntel, Canbay Software which is recently got connected to
Chakan.
Bhosari and Moshi are likely to benefit from the demand flowing in from the working population
in Chakan and Talegon. The region is further expected to develop due the improved North –
West connectivity due to a direct flyover connecting Bhosari to Pimple Gurav in West Pune.
Price Trends in North Pune
Source: PropEquity
Note: Graph represents weighted average price of residential units available in the primary market.
NORTH PUNE
16
Property rates of 'ready-to-move in' in prime residential markets of North Pune**
Location Average Capital Values (INR
/sq. ft.) Rentals for 2 BHK (INR/month)
Pimpri – Chinchwad 4,000 – 5,000 12,000 – 15,000
Bhosari 3,500 – 4,500 8,000 – 10,000
Moshi 4,000 – 5,000 7,000 – 8,000
Talegaon 2,500 – 3,500 5,000 – 6,000
Source: ICICI Property Services Group
**indicative mid-market segment
TATA Motors Plant, Pimpri Chinchwad, Pune
NORTH PUNE
17
Major Locations: Boat Club, Bund Garden Road, Hadapsar, Kalyani Nagar, Keshavnagar, Kharadi,
Koregaon Park, Manjri, Wagholi, Viman Nagar
Key Highlights:
East Pune is one of the most developed and sought after micro-markets of Pune having a good
blend of residential, commercial and retail real estate segments.
This part of city is home to many exclusive and luxurious residential projects, IT Parks, Pune
airport, 5-Star hotels and all leading malls.
Koregaon Park along with Boat Club Road and Bund Garden, are considered to be the most up-
market residential areas of Pune. New residential development in Koregaon Park is limited to a
very few standalone buildings.
Kalyaninagar, near Koregaon Park is another important locality in East Pune providing
commercial spaces to Major IT companies such as TCS and HSBC, some major retail outlets
(Shoppers Stop), hotels (The Westin) and restaurants. The first Trump Towers of India in
association with Panchshil Developers is also being developed at Kalyaninagar.
Over the last few years Viman Nagar has become a prominent location in Pune with many
exclusive and luxurious residential projects (such as the upcoming Lunkad Group and Phoenix
Group’s Fountainhead), commercial spaces & IT parks (Mantri Commercial and Panchshil
Chambers), hotels (Novotel, The Hyatt), leading malls (Phoenix Market City, In Orbit Mall) and
educational institutes. It is well connected to the central area of Pune and the airport.
In recent years, Kharadi has emerged as a preferred location for the IT/ITES sector due to
availability to prime office spaces in EON IT Park and the World Trade Centre. Kharadi not only
serves as a hub for IT/ITeS activities but has become the most popular residential destination
after Magarpatta City and Amanora Park. Kharadi has been built on a paradigm of 'walk to work'
culture which is fast becoming popular in India.
Hadapsar area has Cyber City IT Park and SEZ in Magarpatta City which has companies like
Accenture, Amdcos, Mphasis, Red Hat, John Deere, Etc and commercial office space Pentagon
while Kharadi boasts of EON Free Zone – a large commercial IT SEZ and World Trade Center.
Hadapsar has also witnessed major retail development with presence of landmark malls such as
Amanora and Magarpatta Seasons Mall.
World class residential development in Kharadi alongwith bungalow projects has attracted a lot
of interest from the HIG segment currently residing in Koregaon Park, Kalyaninagar and wanting
to move into larger residences, NRI’s and the business community having offices in nearby
industrial zone of Ranjangaon. There is some demand for luxury housing in this area from
investors too due to higher rental yields made possible by the demand from the foreign expats
working in the IT offices in Pune.
Keshavnagar which lies adjacent to Kharadi has started to see residential development in the
recent past and has generated interest from first time homebuyers. This location is perfect for
employees working in the IT hubs of Kharadi and Margarpatta as it offers compact homes at
attractive rates. A bridge connecting Keshavnagr to Kharadi has been proposed which will
enhance this location’s connectivity.
Wagholi lies on the Eastern corridor of Pune and being developed by PMRDA. This location has
witnessing a spurt in development of new residential projects owing to availability of large land
parcels. The residential uptake in this region is driven by employees working in the nearby
EAST PUNE
18
warehousing and industrial hub of Ranjangaon which houses reputed companies like LG,
Whirlpool, Tata Fiat, 3M, etc. as well as the IT crowd from Kharadi IT hub. Due to attractive ticket
sizes and substantial availability, Wagholi has attracted interest of end users. Wagholi is
contributing to a major portion sales in East Pune.
Due to its proximity to Koregaon Park, Kalyani Nagar and Hadapsar, Mundhwa and Manjri have
also experienced development in the last few years and with expected conversion of large parcel
into non – agricultural land, this area will witness further development in real estate in years to
come.
Prominent developers in this region include Marvel, Kolte Patil, Goel Ganga, Kumar Builders,
Panchshil Develpopers, Nyati, Vascon and Brahma. Category A developers like Godrej has
started the construction of its project while Purvankara has recently launched its township
project.
Growth Stimulators:
The major stimulus for growth in East Pune is on account of penetrating IT/ITeS sector and
burgeoning industrial sector on the outskirts of Pune.
Widening of Nagar Road has improved the connectivity and led to higher office space demand in
the Eastern Corridor which in return has boosted the residential demand.
Demand from families residing in Koregaon Park and Kalyaninagar for up gradation of homes
available in East Pune is also high.
Kharadi is already witnessing an increased residential demand from mid to high end segments.
- This area is experiencing tremendous IT & Non IT development with EON Free Zone – IT
SEZ and World Trade Center which would add to the employment in this area. Currently,
~25000 employees are working in EON IT SEZ and the completion of World Trade Centre
is expected to add another 2 Lakh jobs in the coming year. Construction work on EON IT
Park phase II has started which will further boost the employment in Kharadi and thus
residential demand.
- Retail development to build a high street shopping zone in Kharadi has been envisaged
the coming years.
- Excellent infrastructure with existing connectivity to all major parts of Pune, malls, Pune
airport and Nagar road are the major positives of Kharadi. Apart from this, a bridge to
connect Magarpatta City to Kharadi has been proposed to ensure smoother connectivity
in between the two prime locations of East Pune. A riverside road along the banks of
Mula-Mutha River is under construction to connect Kharadi, Magarpatta City,
Kalyaninagar, Shivajinagar and Bund Garden.
In addition, Kharadi and Hadapsar, are a gateway to Pune via the Nagar Road and Solapur Road
respectively which adds to the residential demand from peripheral cities of Aurangabad, Solapur,
Nagar, Nashik and Jalgoan.
Keshavnagar is slated to get directly connected to Kharadi via a bridge which will change the
residential dynamics of this location as well.
Proximity to Kharadi and the industrial hub at Ranjangaon, clubbed with the unaffordability factor
at Kharadi is driving end-user demand in Wagholi. Wagholi is connected to Viman Nagar and
Kalyani Nagar via Lohegaon making it accessible from different parts of the city.
EAST PUNE
19
Demand in Mundhwa is being driven by its proximity to Hadapsar, Koregaon Park and M G Road
in Camp. A proposed road to connect Koregaon Park Annexe to Magarpatta Cybercity via
Mundhwa will be a driving factor for this area.
Price Trends in East Pune *
Source: PropEquity
Note: Graph represents weighted average price of residential units available in the primary market.
* Missing line segments indicate unavailability of residential units in the primary markets during the specified time frame.
Property rates of 'ready-to-move in' in prime residential markets of East Pune**
Location Average Capital Values (INR
/sq. ft.) Rentals for 2 BHK (INR/month)
Koregaon Park 15,000 – 18,000 35,000 – 40,000
Boat Club 14,500 – 16,500 35,000 – 38,000
Kalyani Nagar 9,000 – 12,500 25,000 – 30,000
Magarpatta 6,500 – 7,000 19,000 – 20,000
Viman Nagar 6,200 – 7,200 18,000 – 21,000
Vishrantwadi 5,000 – 5,700 15,000 – 18,000
Kharadi 5,900 – 7,500 15,000 – 18,000
Hadapsar 4,500 – 5,500 13,000 – 15,000
Kesahvnagar 4,700 – 5,700 12,000 – 14,000
Wagholi 4,300 – 4,500 8,000 – 10,000
Phursungi 3,500 – 4,100 10,000 – 12,000
Handewadi 3,650 – 4,150 9,000 – 11,000
Source: ICICI Property Services Group
**indicative mid-market and new supply segment
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20
Major Locations: Aundh, Balewadi, Baner, Bavdhan, Hinjewadi, Kothrud, Pashan, Pimple- Saudagar,
Wakad
Key Highlights:
Aundh, Baner and Kothrud on one side of Mumbai-Pune Expressway and Hinjewadi on the
other side of the highway are the most popular areas in West Pune.
Aundh with its famous localities such as Sindh Society, National Society, Parihar Chowk, Anand
Park, Ashiyana Park, etc. is a bustling location and is one of Pune’s up-market areas. The area is
a well-developed residential location dotted with bungalows; and most sought after location of
the affluent but has limited space for further development.
Space limitation in Aundh led to its extension into Baner which is now a popular destination
amongst those who desire to be near Aundh. Baner boasts of some premium projects by
developers such as Amar Builders, Supreme Universal, Kalpataru, Kasturi Housing, Kumar
Properties, etc. It also has an added advantage of being nearer to Mumbai – Pune Highway and
having access to Hinjewadi on the other side of the highway. Baner attracts end-users from the
traditional local areas of Pune such as Shivajinagar and Deccan who seek quieter living.
However, there is price – demand mis-match in Baner with majority of projects catering to the
luxury segment while the buyers desire more affordable homes.
Kothrud is a favorite among the local community and is currently experiencing demand from
people seeking up gradation of their homes as well as from NRI’s.
Originally a small village, Hinjewadi, has ushered in the IT/ITeS sector growth and is known as
the IT Hub of Pune and it is this region of West Pune that draws tremendous investor and end
user interest. Home to Rajiv Gandhi Infotech Park and prominent IT players like Infosys, TCS,
Wipro, IBM, Tech Mahindra, Cognizant; it is one of the growth corridors in West Pune.
- Hinjewadi, aided by MIDC, is being developed in phases and has successfully completed
development of 1st and 2nd
phases with 3rd phase under speedy development. Land
acquisition for development of Phase 4 of Hinjewadi is in progress.
- It houses four prominent private SEZ’s namely Ascendas, Blue Ridge, Embassy and
Quadron which are already partially occupied by some IT players while some part of
these SEZ’s is under construction.
- Global players such as Amazon, Facebook, Google and Twitter have also declared their
plans of setting up their operations in Hinjewadi in India in coming years.
- Hinjewadi currently employs ~4 Lakh employess. To keep pace with the growing
commercial real estate in Hinjewadi, a number of residential projects have also been
launched by developers such as Blue Ridge (Paranjpe), Kumar Properties (Megapolis),
Kolte-Patil (Life Republic), Peninsula Land, TCG, etc. thus making the ‘walk-to-work’
culture possible.
Enormous employment and growth opportunites at Hinjewadi has also provided a stimulus to
nearby areas such of Sus, Balewadi, Pashan, Wakad, Ravet and Pimple-Saudagar.
- Sus lies near Hinjewadi, Baner and Pashan and provides an alternate route to Hinjewadi
Phase 3. Infrastructure development, proximity to Mumbai-Bangalore Highway and
availability of affordable homes has boosted demand in Sus.
- Pashan is being developed on the lines of Baner and boasts of scenic surroundings.
WEST PUNE
21
- Similarly, Balewadi which is connected to the Mumbai-Pune Highway and Baner via a link
road has also experienced improved residential development over the past year.
- Wakad lies close to Hinjewadi, Baner, Pimple Saudagar and PCMC. Wakad has a direct
highway connectivity and infrastructure development in the past year has bolstered the
residential development at attractive prices in Wakad.
- The completion of a number of internal DP roads and link roads connecting Aundh, Baner,
Sus, Pashan, Balewadi, Pimple Nilakh, Wakad and Ravet in the past one year has opened
up attractive residential pockets of West Pune.
Gera, Kumar Properties, Kolte Patil, Aditya Builders, GK Developers, Nyati, Paranjpe, Pride
Purple, Supreme, Kalapatru, Marvel Group, Shagun Developers, VJ Associates, Mont Vert and
Wadhwani Constructions are some of the prominent developers in West Pune.
Growth Stimulators:
Proximity to Rajiv Gandhi Infotech Park in Hinjewadi and the Mumbai – Pune bypass has
boosted real estate activity in West Pune, seen by many as one of the future key growth areas.
Hinjewadi is witnessing quick social infrastructure growth with D Mart, Reliance Digital,
Courtyard Marriott, E-square etc. already operational while planned infrastructure development
in this region is underway. Further plans to enhance this region’s connectivity with rest of Pune
are likely to boost the real estate market in Hinjewadi.
Over 4 lakh employees working in Hinjewadi area are propelling growth in adjacent areas like
Wakad, Ravet, Balewadi, Sus, Pimple-Saudagar, Pimple Nilakh, etc. Ongoing infrastructure
development to improve internal and external connectivity is likely to aid the growth of these
new residential pockets.
In addition, Pune - Mumbai Highway houses almost all the car showrooms/service centers
(Nissan, Audi, Mercedes-Benz, etc.) and many leading educational institutes (Indira Institute,
Symbiosis, NICMAR, etc.). Employees and students, working and studying here are one of the
major factors of real estate absorption.
A huge proportion of absorption of real estate in West Pune (Hinjewadi/Wakad/Ravet) can be
attributed to investors from Mumbai on account of easy access from the Mumbai-Pune
Expressway. Investors and some end-users from nearby cities of Kolhapur, Solapur,
Ahmednagar also add to the figures.
Likewise, Baner and Aundh, being easily accessible from industrial areas in Pimpri Chinchwad,
are getting developed as preferred residential location for senior executives of these industries.
- Real Estate growth in Baner has been positive on the back of recent development of its
neigbourhood Aundh which now has large number of shopping centers and supermarkets
like Ozone Reliance Mart, Croma etc. Baner also boasts of famous restaurants and lounges.
- A mall has been proposed on Baner-Balewadi link road which is likely to boost the social
infrastructure of this region. Business centres such as Prabhavi, IT Park, Regis Business Park,
Veritas, and Cummins are located in Baner.
- The locality is well serviced and connected by public transport and has all the necessary
amenities such as banks, shopping centers and schools.
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Kothrud and its neighbouring areas of Paud Road, Warje and Bhugaon collectively being termed
as New Kothrud are seeing a rising demand spilling from Kothrud, good infrastructure and
proximity to Deccan.
- A new flyover from Deccan to Karve Road has eased the accessibility to this location.
- Bhugaon is gaining popularity for residential development due its scenic appeal.
Price Trends in West Pune
Source: PropEquity
Note: Graph represents weighted average price of residential units available in the primary market.
Property rates of 'ready-to-move in' in prime residential markets of West Pune**
Location Capital Values (INR/sq. ft.) Rental Values for 2 BHK (INR/sq.
ft./month)
Aundh 8,300 – 10,000 22,000 – 25,000
Kothrud 8,500 – 11,000 17,000 – 20,000
Baner* 6,800 – 9,200 17,000 – 20,000
Pashan 6,400 – 6,800 18,000 – 20,000
Bavdhan 5,300 – 5,800 15,000 – 18,000
Pimple Saudagar 6,300 – 7,000 16,000 – 18,000
Pimple Nilakh 6,300 – 6,800 15,000 – 18,000
Balewadi 5,500 – 6,000 15,000 – 18,000
Warje 5,700 – 6,200 15,000 – 17,000
Wakad 5,200 – 5,700 14,000 – 16,000
Hinjewadi 4,500 – 5,400 14,000 – 15,000
Source: ICICI Property Services Group
*Price range is for all premium properties in Baner
**Indicative mid-market segment
WEST PUNE
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Major Locations: Ambegaon, Katraj, Kondhwa Budruk, Mohammadwadi Road, NIBM, Parvati,
Salisbury Park, Sinhagad Road, Warje, Wanowrie
Key Highlights:
South Pune is the region which developed around Swargate – the city center of Old Pune.
Proximity to Magarpatta IT Hub, Camp, MG Road and Pune Railway Station and availability of
homes at attractive prices has made Undri, Handewadi and Pisoli the newest destination of end
use buyers from Swargate and Katraj.
Undri and Pisoli, famous for furniture trade and located on Katraj – Hadapsar Bypass (connecting
the Pune-Solapur Highway), has been witnessing major real estate activity from category A
developers due to availability of large land parcels making affordable housing possible.
Similarly, the unaffordability factor at NIBM, has pushed the sales around Mohammadwadi,
Handewadi and Katraj – Kondhwa Road.
Gated community living being offered at attractive prices in projects at these locations has also
seen demand from people residing in peripheral areas of Pune namely, Satara, Kolhapur and
Sangli.
Adding to the investor demand is the local business community residing in Swargate and Katraj.
D.S.K, Nyati, Kumar Properties, Clover, Marvel, Kolte Patil, Amit Enterprises, Goel Ganga and
Mittal Group are some of the prominent developers in South Pune. Godrej Properties and TATA
Housing have also forayed into this micro market.
Growth Stimulators:
The real estate market in this region is being driven primarily by the end-user demand.
Congestion in traditional residential areas of South Pune – Swargate and Katraj, and demand
from local community for up gradation of homes is going to drive the demand in this market.
Residential projects at Undri, Pisoli, Katraj – Kondhwa road provide modern amenities, gated
living. Pune’s ISKCON temple is also located near Undri and Pisoli.
Better accessibility to Magarpatta City and Phursungi from Undri and Pisoli are key positives of
these locations.
Going forward Undri and Pisoli are going to get developed under the PMRDA as the authority
adds more villages under its development zone. A number of infrastructure projects such as the
expansion of Pune-Solapur Highway, Mumbai–Hyderabad Highway are proposed, which will
make Pune easily accessible from nearby cities and add to the demand in South Pune.
Availability of larger land parcels, presence of reputed schools and International Institutions
(DPS, Vibgyor, Bishops, RIMs, etc.), Corinthians Club and hospitals (Inamdar Hospital, Ruby Hall)
in the vicinity also add to the buyer interest in this location.
Real estate demand in is also expected to surge due to availability of affordable housing
alternatives to home seekers as compared to NIBM and Wanowrie.
SOUTH PUNE
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Price Trends in South Pune
Source: PropEquity
Note: Graph represents weighted average price of residential units available in the primary market.
Property rates of 'ready-to-move in' in prime residential markets of South Pune**
Location Average Capital Values (INR
/sq. ft.) Rentals for 2 BHK (INR/month)
Salisbury Park 11,000 – 13,000 18,000 – 20,000
Sinhagad Road (Close to
Karvenagar, Kothrud) 7,500 – 8,500 16,000 – 18,000
Wanowrie 6,500 – 7,500 17,000 – 21,000
Kondhwa NIBM 5,000 – 5,700 15,000 – 17,000
Katraj 4,200 – 5,000 10,000 – 12,000
Ambegaon 4,600 – 5,100 11,000 – 14,000
Kondhwa Khurd 4,800 – 5,100 12,000 – 14,000
Undri 3,700 – 4,500 9,000 – 11,000
Source: ICICI Property Services Group
**indicative mid-market segment
SOUTH PUNE
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Location Attractiveness Index - Pune
Aundh Baner Hinjewadi Kalyaninagar
Katraj -
Kondhwa
Road Kharadi Moshi Undri Wagholi Keshavnagar
Infrastructure
(connectivity, roads,
schools, markets)
Residential Cost
Proximity to
Organised
Retail
Proximity to
Commercial
Development
Future Infrastructure
Development
Future Employment
Generation
Good / Low cost
Above Average
Average / Medium cost
Below Average
Bad / High cost
Source: ICICI Property Services Group
LOCATION ATTRACTIVENESS INDEX - PUNE
26
ANALYSTS
Sanjesh Sable
Regional Head – (West)
ICICI Home Finance Company Ltd.
Priya Bhatia
Manager, Structured Finance Group
ICICI Home Finance Company Ltd.
For any further queries, please e–mail us at [email protected]
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