Investment In PUNE – A Plus
In the Pune market, the luxury segment is more about high-end specifications and lavish sizes whilst the Mumbai market is driven by per sq ft rate for a basic flat. The main difference between Mumbai and Pune is the scarcity/paucity of land in the MMRDA regions.
Thanks to the city’s increasing commercial importance, Pune has witnessed higher demand for residential units in the last few years. The demand for realty in Pune is definitely soaring, thanks to the large number of offices, proximity to the airport, improved physical and social infrastructure and established retail markets.
Today, IT hubs such as Hinjewadi, Kharadi, Magarpatta and Kalyani Nagar, are literally dictating the trend of residential real estate development in and around these areas. Aundh, Baner, Ambegaon, Undri and many other locations from which these IT parks can be reached, are seeing massive development. Even then, property rates in Pune are still far more affordable than in Mumbai, as it is a smaller city and commuting time is also less. Additionally, as there are still a lot of rural areas around the city left to urbanise, property prices in Pune cannot rise as quickly or as steeply as in a land-deficient city like Mumbai.
According to CEO, Marvel Realtors, at the price of an average 2-BHK in Mumbai, Pune offers lavish sized apartments with best-in-class amenities and specifications, landscaped as well as open areas. Pune is still a cost-plus market, according to Marvel Realtors, with 85-90 per cent comprising of end-users, while 10-15 per cent comprises of long term investors who invest in properties either for a second home or they take a longer possession of minimum three to five years on the property. In short, the Pune market is driven by end-users than by short term speculators.
However, vice-president – CREDAI (Pune Metro), stresses on infrastructural issues affecting development of both the cities. Pune is now following the same pattern of haphazard development that made Mumbai such a difficult city to invest and live in. There is no town planning to speak of in either of the cities and infrastructure has become a huge challenge in both. Even though, prices are still lower in Pune than in Mumbai, the gap is reducing every year.
PRICE POINTS AND LOCATION
The below mentioned price points are the basic cost according to the place and doesn’t include any taxes that will be levied.
Rs 40-80 lakhs
Pune offers properties with the configuration of 2 and 3-BHK units in areas like Ravet, Punavale, Kiwale, NIBM Annexe, Undri, Pisoli and Wagholi. For the same budget, Pune city offers 2-BHK units in Hinjewadi, Baner, Kharadi, Hadapsar, Balewadi, Wanowri and NIBM. Ambegaon, Mundhwa, Hadapsar, Phursungi, Kondhwa, Wakad and Bhugaon, are other locations in Pune that fall in this category. In Mumbai, for a budget of Rs 40-80 lakhs one can look properties in the far-flung suburbs like Virar, Vasai, Nalasopara, Kalyan, Dombivli, Ambernath and Panvel. In the range of Rs 65 lakhs to Rs one crore, in Pune, one can 2 and 3-BHK units in locations like Wagholi, Kondhwa and 2-BHK units in Balewadi. In this range, in Pune, one can also find 2 and 3-BHK units in Kharadi Annex and Mahalunge Balewadi-Baner with top-of-the-line lifestyle amenities. In Mumbai, one can find studio apartments, starting at Rs 73 lakhs in the western suburbs like Andheri (e).
Rs 80 lakhs-Rs 1 crore
Under this budget, one can explore options for a 3-BHK unit in Baner, Balewadi, Hinjewadi, Viman Nagar, Kharadi, NIBM and Pashan, which are all high-end areas of Pune. On the other hand, for the same budget, one has to still go in for far flung locations like Dahisar, Mira Road, Thane, Kharghar, Belapur in Mumbai city,” says Bhatia. Pate outlines Wanowrie, BT Kawade Road and Bibwewadi as areas falling under this budget category. In Pune, one can find larger 3 and 4-BHK units that fall in this price range – in Kharadi, Kalyani Nagar, Baner, Pashan and Balewadi. In Mumbai, one would find 1-BHK units starting at Rs 93 lakhs in some of the western suburbs.
Rs 1- 4 crores
According to source, in Pune, this budget offers configuration of 3 and 4-BHK units in areas like Baner, Balewadi, Koregaon Park, Boat Club Road, Kalyani Nagar, Viman Nagar, Kharadi, Magarpatta and Kothrud. Sopan Baug, Prabhat Road, Model Colony, Dhole Patil Road, also make it to the list in this budget category. In Mumbai, major parts of the suburban area are covered, with the exceptions of south Mumbai (Golden Triangle, Worli, and Prabhadevi). In the range of Rs 1-2 crores, you can find 3 and 3.5-BHKs in Kharadi, 3.5-BHK apartments in NIBM, 2 and 3-BHKs in Magarpatta, 3 and 3.5-BHK apartments in Magarpatta. Between Rs 2-4 crores, you can find 3 and 3.5-BHKs in Koregaon Park, 3.5-BHKs in Bavdhan, 4-BHKs in Magarpatta, 4.5-BHKs in Magarpatta, 4-BHKs in NIBM, 3, 3.5, 4.5 and 5-BHKs in Kharadi and 4.5-BHKs in Balewadi. In this range, you will find luxury properties in Pune, in areas like Kalyani Nagar, Karve Road (Kothrud) and Mukund Nagar, with premium specifications and amenities. In Mumbai, you can find 3-BHK projects in areas like Goregoan-Malad link Rd, Goregaon (w), Wadala, etc.
Rs 4 crores and upwards
In the range of Rs 4 crores and above, one can find homes which are 3.5, 4 and 5-BHKs in areas like Boat Club Road, 4.5-BHK villas in areas like Bavdhan, Magarpatta, 4.5-BHK apartments and penthouses in areas like Bhosale Nagar, Kanchangalli, Koregaon Park, 3-BHK apartments and penthouses in Salisbury Park, off Shankarsheth Road, etc. Developers are coming up with ultra-luxury projects with luxurious amenities, at areas like Koregoan Park, with prices as high as Rs 9 crores. Finally, the distances between the two cities are still wide enough to justify the rate difference. However there is a possibility of faster mode of transportation, like bullet/maglow trains in the future, which can play a dramatic role in price bridging.
Currently, the rates are influenced by commercial establishments and socially established locations, fetching irrational rates. “Though, the growth of property values cannot be compared to that of neighbouring Mumbai, Pune has the advantage of being a stable market with consistent demand coming from a number of strong and dependable business sectors,” concludes Sanjay Bajaj, managing director-Pune, Jones Lang LaSalle India.
Category : Flatons Advisors Blog