The Maharashtra government aims to develop Ring Road as an economic corridor of Pune. Once completed, it will prove to be a boon for the city’s realty market and will trigger several residential developments along the stretch.
The traffic in and around Pune has been increasing at a rapid pace due to the city’s socio-economic development over the years. Since the city is situated at the confluence of three National Highways (NH 4, NH 9 and NH 50), a Ring Road was collectively proposed by Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) in 2007 to divert the traffic outside the city limits.
Devendra Fadnavis, Chief Minister, Maharashtra recently revealed that the proposed eight-lane ring road will be developed as an economic corridor by integrating tourism, industrial and agri-based corridors, as proposed by the Pune Metropolitan Regional Development Authority (PMRDA) and the Public Works Department (PWD). Once completed, the economic development along the stretch will increase the customer base for residential as well commercial spaces in the city.
The 161-km-long Ring Road will cover 29 villages of the district, connecting highways such as Pune-Nashik (NH 50), Mumbai-Pune-Solapur (NH 9), Pune-Ahmednagar and Pune-Satara that either pass through Pune and Pimpri-Chinchwad or city outskirts.
The project road, which will be used by nearly 10 lakh vehicles every day, shall be developed with expressway standards. While the monorail proposed along the road will reduce the use of private vehicles, the Transit-oriented Development (TOD) is also being considered around Pune and Pimpri-Chinchwad stretches. The project, worth Rs 104.08 billion will reduce the travel time and improve the economic status of the villages along the project area. Other expected benefits include:
- Fast and safe connectivity, resulting in savings in travel time and fuel.
- Development and improvement of transportation infrastructure in and around Pune.
- Development of local agriculture and handicrafts along with quick transportation of perishable goods such as vegetables, fruits and dairy products.
- Improved quality of life for people living in the outskirts.
- Development of civic infrastructure, real estate and social infrastructure along the road.
Possible benefits for realty
The emergence of new end-user destinations: Since Pune has been an economic base for manufacturing and automobile industries, as well as for Information Technology (IT) and educational institutes, many students, and working population migrate to the city from different states. The majority of these migrants rent out the apartments in the city until they settle down in the right location. “The project is likely to benefit the areas including Viman Nagar, Kalyani Nagar, Wadgaon Sheri as the travel time from these areas to Mumbai will drastically fall. These micro-markets will garner greater end-user demand from the working class who will be located around the ring road,” explains Vidip Jatia, Director, Belmac. These important micro-markets around Pune and in Pimpri-Chinchwad will also commission premium homes for managerial level employees in the future.
Appreciation in rental yields: As the congestion in the city will reduce, there will be an increased need for homes in and around the Ring Road, which includes areas such as Hinjewadi IT Park, Chakan, Shirval Industrial Area, Talegaon, and Chinchwad in the vicinity. This will, in turn, inflate rental asks in Pune’s well-connected localities such as Akurdi, Talegaon and Chikhali. “However, the property prices are subject to the project progression,” explains Jatia.
Creation of affordable homes: As per the detailed project report, about 8000 individuals (skilled, semi-skilled and unskilled labour) will be employed per day during the expected construction time of 36 months. Even, in the post-construction phase, the project will provide direct employment to about 800 people who may settle around various project sites. “This will create demand for affordable housing in nearby areas, and likely to emerge as realty hubs, particularly Tulapur, Alandi, Kalegaon, Shirgaon, Pirangut, Sriramnagar, Patharwadi, Bhivri and Kanifnath,” anticipates Sunny Chinchane, Director, Dial Your Properties.
Consequently, the development of entertainment centres, theme parks, hotels, resorts and shopping centres will be developed in and around these areas – a catalyst for demand from long-term investors.