Unlimited Growth In Pune
With infrastructural development happening at a fast pace, the distance between Mumbai and Pune is shrinking. What effect will this have on the real estate market in these regions? Resource analyses
Pune and Mumbai will no longer be two distinctly different cities in a few years. They will merge into one area, which insiders predict will be called ‘Pumbai‘. The Pune-Mumbai corridor is the most important economic hub in India and has the potential to contribute substantially to the country’s GDP and employment. The real estate market in this stretch, has been growing rapidly since the last few years. The city of Pune and Mumbai, are now comparable to the most prominent cities in the world. Pune has created its identity as the IT hub of western India and Mumbai has emerged as a global financial hub, in the last two decades. Both the cities offer great opportunities for developers to create housing for potential home buyers and office spaces for the new age professionals, corporates and business communities.
There are two aspects to Pune’s real estate that indicate accelerated growth. The first is the infrastructure that is expanding outward, which is going to be a key ingredient in this growth. The second is that the city has a symbiotic relationship with Mumbai, with a massive amount of synergy happening.
The expressway that was built two decades ago, marked the beginning of bringing the two cities nearer and a number of areas that were nowhere on the real estate radar, started experiencing rapid development. Infrastructure between Mumbai and Panvel like the Sion-Panvel expressway and the CST-Panvel high-speed rail, will further enhance connectivity to the Pune belt, reducing the commute time. Unprecedented real estate development has been taking place on the transport corridor of Pune and Mumbai. Panvel or the area of Navi Mumbai, has also emerged as the centre place in this journey. This process is an ongoing one and there is no doubt that more locations between Pune and Mumbai are going to open up. However, the development process has not been holistic. It has been heavily skewed towards certain areas like Hinjewadi. What is required is a pattern of urbanisation for these new areas that puts infrastructure implementation before real estate development.
A major reason for the increase in demand for real estate in this stretch, is that there is more land available for township projects, which is a major plus point for real estate development. Home buyers can expect lifestyle amenities like a playground, clubhouse, etc., in the new townships coming up here. Today, the Mumbai-Pune stretch offers maximum value for money due to its close connectivity to the twin cities and opportunities available for real estate investments. Therefore, this stretch will definitely witness an increase in real estate development in the near future.
In the case of Mumbai, peripheral areas such as Vashi and Nerul have also witnessed increased activities due to the infrastructural growth in the region. Also, since Kalamboli is the central point between Mumbai and Pune, an increasing number of people from both cities are investing here. Panvel’s proximity to Pune is its biggest asset. Another plus point is its proximity to the freight corridor – Jawaharlal Nehru Port Trust (JNPT) and the industrial corridor. The rail connectivity is also excellent. With the new international airport coming up in Navi Mumbai, the real estate outlook in and around Panvel seems very promising. Over the last year, this stretch has suddenly become the hotspot for real estate.
Without a doubt, the push for infrastructure in this belt will attract more and more real estate development. Today, Pune figures prominently on the radar of local, national and international real estate investors and developers. The forward momentum of Pune’s real estate sector will benefit greatly from the opening up of this vital stretch for development. This is in line with the government of Maharashtra’s efforts to promote the Knowledge Corridor concept, which primarily includes the Mumbai-Pune expressway (the first of its kind in India). This expressway is equipped with optic fibre cable links along its expanse. With the drive to further build the infrastructure along this belt, there will be very high incentives for both, residential and commercial real estate developers to get involved significantly.
Infrastructure development has played a key role in real estate development along the Mumbai-Pune stretch, in the past two decades. The major reason has been the influx of IT and manufacturing companies along this stretch. With the international airport to be built in Panvel, travelling to Pune will be further made easy. There will definitely be more real estate development along the expressway, which by itself, has already turned areas such as Ravet in the PCMC into valuable real estate investment destinations. Road connectivity is always a strong catalyst for real estate growth. Most of the stretch between Pune and Mumbai has been seriously underutilised so far but once the authorities open it up for faster development, there will be no holding back its real estate potential.
With so much infrastructural development happening, the distance between Mumbai and Pune is shrinking. When people can travel from the western corridor of Mumbai to the city, it isn’t difficult to travel from Pune, especially, when the infrastructural developments in the area are fast-paced. Many builders are exploring the stretch between Mumbai and Pune. Staying on the outskirts of Pune, which is witnessing good social infrastructure growth, people can save time commuting. The areas here have seen an appreciation of 25-30 per cent in the last one and half years.
The real estate price band in the developed and developing areas between Mumbai and Pune is huge and depends on their individual development profiles. One can invest in this stretch, provided that one does so in an area that is showing visible signs of growth potential. The current rates along this stretch vary significantly, depending on how well the various individual pockets have already developed. With so much impetus being given by the Maharashtra government and the local municipal bodies, to the development of infrastructure, the realty rates in areas with proximity to national highways like Mumbai-Pune, Pune-Solapur, etc., have been rising consistently and we see this trend moving upwards. The rates depend on the area and proximity to the highway, and range between Rs 3,000-7,000 per sq ft.Google+ image
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