The average prices of residential properties in Pune grew by three per cent in the Jul-Sep 2014 quarter. Improved market sentiments kept demand sturdy and therefore, price trends positive for most prominent localities across regions.
- The average residential property prices in Pune rose from Rs 6,003 per sq ft in Apr-Jun 2014 to Rs 6,217 per sq ft in Jul-Sep 2014. While the quarter-on-quarter percentage hike stood at three per cent, the city witnessed 11 per cent year-on-year growth.
- Quarter-on-quarter, Moshi recorded the maximum price increase of 12 per cent. Whereas, Magarpatta registered the least quarter-on-quarter appreciation to the tune of one per cent.
- Annually, Pimpri has been the highest gainer witnessing a 35 per cent increment in capital values. On the other hand, Katraj-Kondhwa Road performed the worst by recording a drop of 11 per cent.
- Pune’s average rental values have appreciated by 4 per cent since the last one year. Boat Club Road witnessed maximum hike in rental values in the September ending quarter of 2014.
- Senapati Bapat Road saw capital values going up by 29 per cent and rental values going up by 19 per cent in the last one year, i.e. between Jul-Sep 2013 and Jul-Sep 2014.
- The new BJP government with its focus on real estate and infrastructure development is pushing realty prices north
- Fast-tracking of the Delhi-Mumbai Industrial Corridor (DMIC) to boost manufacturing hubs, and thus job opportunities in Pune
- Proposed development of the area surrounding the Mumbai-Pune Expressway generating sturdy demand
- Development of business parks and consequent infrastructure resulting in expansion of residential real estate towards the peripheries
- The 12 per cent capital value appreciation in Moshi, the highest in the city, was probably because of its proximity to Pimpri-Chinchwad, Pune’s industrial hub. The recent (postelection) announcement on fast-tracking the Delhi-Mumbai Industrial Corridor (DMIC) primarily fuelled price growth in the region in Jul-Sep 2014 quarter.
- Rising market sentiments led to seven per cent quarterly spurt in property prices on Boat Club Road. The year-on-year increase has been to the tune of six per cent. Being a premium address and having limited land banks, it scored high on the demand graph.
- Koregaon Park recorded six per cent appreciation quarter-on-quarter and 29 per cent, year-on-year. Its status as a prime locality, easy accessibility to the airport, railway station and the city’s IT hubs (Kalyani Nagar and Magarpatta) have been the main factors propelling demand here. State-of-the-art social and civic infrastructure in the locality have placed it high on buyers’ and investors’ wishlist. Sporadic supply and consistently high demand are other factors responsible for the prices going north in Koregaon Park.
- Pimpri Chinchwad, Wakad and Bavdhan recorded a four per cent hike in the Jul-Sep 2014 quarter. Their year-on-year growth was also robust at nine per cent, 30 per cent and seven per cent, respectively.
- Favourable industrial policies significantly pepped up demand for infrastructural development and residential property in the Pimpri-Chinchwad belt in Jul-Sep 2014. Wakad, located in Pimpri Chinchwad, also benefitted from the fast-tracking of the DMIC corridor, proposed development of areas around the Eastern Express Highway and the encouragement given to IT and corporate parks by the government.
- Bavdhan, being a fairly modern residential locality with good social and civic infrastructure, benefitted from the proposed development of the area around the Mumbai-Pune Expressway.
- Baner recorded three per cent growth in the September ending quarter of 2014. Presence of IT companies has conventionally spearheaded the growth of real estate here. Historical price appreciation (between 25 per cent and 30 per cent) was one of the major factors driving demand (and hence property prices) in Jul-Sep 2014.
- Both Magarpatta and Hadapsar grew at a rate of one per cent in the Jul-Sep 2014 quarter. Subdued growth in both the localities is probably due to the pollution from local industries and vehicles, resulting in rather poor quality of air in the region.
- Hinjewadi also grew marginally by one per cent in this quarter. Undeveloped roads, never-ending traffic woes, insufficient and irregular electricity supply, increasing water problems and lack of security were the major dampeners for this western IT hub.
- Dhayari, situated near the Katraj-Dehu Road Bypass, about 13 km from Pune, witnessed slow growth as compared to other localities. Situated away from the Central Business District, it is still under-developed and primarily targeted at the middle class.
- Growth of the Pune periphery due to sky-rocketing property prices in the mainland has led to real estate development in Wagholi, that grew to the tune of one per cent. However, sluggish residential development and inadequate infrastructure resulted in low demand, thereby, suppressing the rate of price appreciation here.
- Aundh, one of the oldest and an affluent locality in the North-West, saw a price rise of two per cent in this quarter. High prices as compared to nearby localities such as Baner was the major reason behind muted price growth. The marginal price rise of two per cent can be attributed to its excellent infrastructure, proximity to the University of Pune and the Software Technology Park at Hinjewadi which have given an impetus to the growth of residential real estate.
|LOCALITY||APR - JUN '14||JUL - SEP '14||% CHANGE|
|Boat Club Road||14,800||15,850||7.09%|
* Values represent average capital and rental per sq ft ratesRental Analysis
- Rentals in Wadgaon Sheri appreciated by 20 per cent in the last one year. Good social and civic infrastructure, and proximity to airport, railway station, and city centres such as MG Road, Shivajinagar, Camp and Hadapsar have positively contributed to the rapid increase in rental values in the locality.
- Senapati Bapat Road saw a decline in rental values from Rs 21 per sq ft in Jul-Sep 2013 to Rs 17 per sq ft in the same quarter this year. High rentals, traffic gridlocks and locality saturation resulted in the substantial decline in rental values, despite it being one of the busiest and famous roads of Pune.
“Rental values hiked in Boat Club Road, Bibwewadi, Pimple Gaurav and Wadgaon Sheri by 20%-30%.”
- Pimple Gaurav saw rental values rising by 20 per cent (from Rs 10 to Rs 12 per sq ft) between Jul-Sep 2013 and Jul-Sep 2014. Recent developments such as the six-lane Nashik Phata to Wakad Bypass and improved connectivity with Hinjewadi’s Software Technology Park, Tathawade IT Park, EON IT Park and Magarpatta City have been the primary factors fueling growth of rental values in Pimple Gaurav, year-on-year.
- Chinchwad saw an yearly fall in rentals to the tune of eight per cent. Availability of affordable rental options in nearby localities such as Ravet, Bhosari, Rahatani and Akurdi along with good infrastructure and seamless connectivity resulted in shifting demand.
|LOCALITY||JUL - SEP '13||JUL - SEP '14||% CHANGE|
|B.T Kawade Road||13||13||0%|
|Boat Club Road||21||27||29%|
|Senapati Bapat Road||21||17||-19%|
* Values represent average capital and rental per sq ft rates