Rapid infrastructure development coupled with increasing connectivity to neighboring cities are driving the growth of Pune real estate market
By Tushad Dubash, Director, Duville Estates
The genesis of Pune into the metropolis that it is today, began years back when a dearth of land parcels to accommodate the growing real estate and infrastructure requirements of the IT boom in Mumbai necessitated a shift to a more viable option in Maharashtra. Post 1990, the city has emerged as a leading destination for information technology and biotechnology parks, thus shaping Pune as an industrial city with a vibrant cosmopolitan population that has migrated from various parts of the country into the catchment of these IT dominated areas. Pune is the second most populated city in the state of Maharashtra and the ninth-most densely inhabited city in India. The city is considered to be one of the fastest growing cities in the Asia-Pacific region, according to the report “Residential Market Report on 35 Indian cities” published by Liases Foras. Owing to the rapid development, IT hubs, commercial spaces and other social infrastructure, Pune is increasingly becoming the first choice for developers and homebuyers, due to its proximity to Mumbai. As the population of the city increases, its demand for better infrastructure facilities have increased. Looking at the current demography, the fast-paced evolution of the city and the living index, Pune will become one of the most sought-after metropolitan cities in the country.
Rapid infrastructural development coupled with a favorable geography in terms of its connectivity to almost all other cities in the country. This has allowed Pune the lateral growth that is possible as opposed to Mumbai. This has seen Pune being rated as one of the best upcoming markets with several micro-markets in and around the city like Hadapsar, Kharadi, Baner, Pashan, Hinjewadi, Kalyani Nagar, Koregaon Park, Wagholi which have started evolving in the recent past and have been driving the growth in Pune. The city has evolved over the years to become a bustling business and IT destination, driving the residential real estate market. With existing and new infrastructure coming up like the New Kharadi - Shivane Riverside Road, which will link Kharadi to Kalyani Nagar; the Sinhagad Road - Canal Road area in Pune is witnessing rapid infrastructural growth. This sustainable infrastructure will further facilitate easy commute for the people around the suburbs. Micro markets like Kharadi have registered more new residential project launches across a wider spectrum of product offerings compared to the other micro geographies in Pune. The ongoing infrastructure projects in various parts of Pune will improve the connectivity across the city from the fringe to the central areas. This will help homebuyers accelerate their home buying decision and help bring down the inventory overhang in the city.
The flourishing office spaces across multiple segments, the MNCs and SMEs adding up, helps Pune gain fast ground. The IT sector in Pune contributes to about 10% of national software exports (source: pmc.gov.in) and with over 600 IT companies. A dramatic surge in the number of commercial enterprise and establishments along with a skilled workforce, foreign direct investments (FDI) and better connectivity, social factors etc continue to drive the residential demand in Pune. The city is home to some of the most prominent brand names in the financial and IT space. They city has a plethora of educational institutes across disciplines that provide a host of educational opportunities to its residents and the presence of some of the best brands in healthcare. Pune also benefits from popular social infrastructure that adds up to the recreational prospects of the city. This has therefore led to reputed developers continuing to invest in launching new inventory in the city. After the development of commercial and residential properties began, the demand for better infrastructure and amenities started increasing. Further adding to this, the development of the metro rail lines and ring road will boost demand for residential and commercial properties due to improved connectivity of the locations.
The city’s phenomenal growth has generated a large number of new jobs, attracting people across the country to settle down in Pune and thus contributing to population growth, which is leading to a growth of multiple mid segment residential projects catering to the demand of working professionals. This not only attracts
Pune has seen a steady rise in the number of skilled workforce, adding to the growth of residential demand. Infrastructural development is further giving rise to a very diverse socio-economic population set up of the city. In the coming days, demand for residential property in Pune will attract more developers to embark on new residential projects, thereby further boosting the prospects of the city develop into a favored residential destination.