Investors and property buyers have started showing a lot of
interest in real estate market of Pune. The distance between Mumbai and Pune
has been greatly reduced because of the Mumbai-Pune Expressway. The Housing
Sentiment Index for buyers of Pune has been positive for the past 2 quarters of
2014. The HSI of Pune increased by
almost 3 percent in the first quarter of 2014 whereas it was 9 percent in the
preceding quarter. In comparison, the HSI rose in Mumbai by only 1 percent in
the second quarter of 2014 whereas it rose by 24 percent in the first quarter
of 2014.
Investors belonging to Mumbai have made investments or bought
second properties in areas close to the Mumbai-Pune Expressway. The areas which
are seeing a lot of interest from buyers are Dhanori, Wakad, Ravet, Dabhade,
Wagholi, Hadapsar and Ambegaon aside from others.
Growth Consistency :
Even though there is much uncertainty politically, the realty
market of Pune has been positive in the past 6 months. The market in Mumbai on
the other hand has been quite volatile and has shown downs and ups in the past
6 months. Even though property markets in Pune have slowed down a little, there
has been a good momentum in the market which defines the stability of the real
estate market.
When it comes to initial investment, the appreciation scope is
higher in Pune than Mumbai. This can be attributed to the fact that there are
more numbers of investors in a proposal which demands lower investment compared
to a higher one. The higher the demand-supply gap, faster would be the
appreciation.
The main reason behind this is the opportunity generated by IT
and ITeS concerns along with manufacturing and automobile sectors which have
made sure of a steady demand stream. A lot of industries are paying salaries as
high as what one would earn in Mumbai’s job market.
Mumbai’s High Expense :
Price of property in Mumbai is much higher than what is being
asked for in Pune. Even for buying a small 1BHK
flat in Mumbai of 600 sq. ft. or so, people have to pay Rs 1 crore or
so for staying in main city otherwise they have to move out to Navi Mumbai, Thane
and the city’s fringes for low cost investments. However, there are many flats
in Pune available with Rs 30 lakhs to Rs 1 crore or more in the city.
Simple Lifestyle :
Those Mumbaikars seeking a home away from home prefer to stay in
Pune. Even though it is not a metropolitan area, the city is quite cosmopolitan
in its approach and offers affordable living. It is an IT and educational hub
and Pune’s lifestyle is easy and friendly, much apart from the hustle and
bustle in Mumbai. Pune’s cost of living is cheaper than Mumbai by almost 10 to
20 percent.
Off late, a lot of celebrities are also investing in Pune.
Because of the growth in real estate and the closeness to Mumbai, they have
been attracted to Pune. Moreover, the ambience in Pune is serene and peaceful
and in complete contrast to Mumbai’s hectic life which is why they are
investing in the city.
The Mumbai Pune Expressway has fuelled growth to a good extent
in nearby areas. Areas of Pune which have an easy access to the Mumbai Pune
Expressway have the potential to attract both investors and buyers. The
expressway is now being touted as a real estate growth corridor which is coming
up with great prospects of real estate growth. A lot of industrial and
manufacturing industries are present on a side of the Mumbai Pune Expressway
and this has caused an increase in economic activity level which has in turn
brought in a higher interest in residential investment of the area. Also, the
Navi Mumbai airport which has been proposed is fuelling growth further. The
CIDCO has started off on an infrastructure development project worth Rs 20,000
crores and it shall manage nodes close to the airport. Lakeside views, scenic
beauty, natural surroundings and pollution free environment along with the
nearness to Lonavla and Khandala has caught the attention of builders, buyers
and investors. A large number of residential projects are coming up along the
expressway.
The Mumbai Pune Expressway exhibits long term gain potential is
what experts believe. Since the government could not monetise the expressway,
the immediate potential of it could not be realized. Development of a highway
infra-development may have been possible with service and manufacturing hubs on
both service sides and expressway ends. The expressway would be more attractive
for real estate and industrial development as Mumbai-Pune-Bangalore expressway
corridor has been planned.
Advantages offered :
One of the biggest advantages of these properties is that they
have lots of natural and green environment available close by. Moreover, a lot
of landscaped area is there near the residential places. Along the expressway,
bungalows, farmhouses and row houses can be seen. Terrain and natural beauty
also makes this area quite attractive. For those in Mumbai and Pune who are
used to living in cramped areas, this area is quite relaxing and rejuvenating.
The per square feet value of space available here is quite less when compared
to other secondary and central business district areas.
A lot of office and IT hubs are located along this stretch.
Those residing in Hinjewadi or Pimpri Chinchwad see the expressway as an
investment or second home option. Prices of properties tend to rise a lot every
3 years and the rise is almost twice the price which is prevailing currently. A
lot of people buy flats in Pune
along the expressway for their preference and not only monetary returns.
Therefore, those buying flats in Pune in Ravet or Baner do so for their
closeness to important hotspots.
What attracts investors?
The top condition of the road and pollution free node which has
a lot of scenic beauty primarily attracts buyers. A lot of manufacturing
industries are located nearby which generates lots of economic activities.
Proximity to tourist locations such as Kaset, Lonavala, Alibaug and Khandala is
what adds value to this location.
Given the way things are happening, more number of investors may
be interested in flats in Pune along the expressway compared to end users.
However, in the longer term, end users too would be attracted to property here.
Currently, Pune and Mumbai properties have very few limits.
