If housing investment is on your mind, then Pune is one of the thriving real estate markets in India. The presence of IT/ITeS establishments, pleasant weather, a multitude of choices across budget and higher Returns on Investment (ROI), make it one of the highly desirable realty hubs across Tier 1 cities. To know about the popular residential investment destinations in Pune, read on here.

Investment in the real estate market is primarily driven by the returns that a buyer would earn from a property over a period of time. Therefore, even if you invest in one of the flourishing real estate markets, it is crucial to research and identify the areas that are likely to remain in demand in the forthcoming years. As a potential investor, understanding both the current and future market dynamics to reap higher returns from investment is imperative. Pune as a city has several lucrative residential investment destinations; however, some locales outshine others in terms of location, infrastructure, and more essentially, the Returns on Investment (ROI).

Popular residential investment destinations in Pune

Locations

Capital values (in per sq ft)

Capital appreciation QoQ in Jan-Mar 2021

Rental values (in per sq ft) as of Jan-Mar 2021

Rental appreciation, YoY in Jan-Mar 2021

Rental yields YoY in Jan-Mar 2021

Hadapsar

Rs 6,150

3%

Rs 18

6%

4%

Dhanori

Rs 5,200

1%

Rs 17

3%

4%

Vadgaon Budruk

Rs 4,200

-5%

Rs 12

9%

3%

Keshav Nagar

Rs 5,000

3%

Rs 17

6%

3%

Moshi

Rs 5,000

1%

Rs 12

4%

3%

Source: 99acres Pune Insite Report (Jan-Mar 2021)

Hadapsar

In the east of Pune, Hadapsar is one of the popular areas boasting a mix of technology parks and exclusive gated residential complexes. It is acknowledged as one of the major commercial zones of Pune with three Special Economic Zones (SEZs) - Phursungi IT Park, Magarpatta City and the Amanora Parktown. Many reputed companies, such as Honeywell, TCS, IBM and Accenture, have their offices in this area, which has paved the demand for residential properties. With respect to the housing choices available, Hadapsar offers varying options, ranging from apartments in high-rise structures to independent houses and villas.

The area is always high in demand among working professionals, and it is perhaps due to this reason that the average home prices in Hadapsar have recorded an uptrend despite the COVID-19 slowdown. 

According to 99acres Pune Insite Report, the average property prices in Hadapsar have increased by three percent QoQ to Rs 6,500 per sq ft in Jan-Mar 2021. The rental values have also increased by six percent YoY and the yields generated over the year stand at three percent.

 

Hadapsar has an abundance of shopping centres, grocery stores, educational institutes and healthcare centres. Being a bustling area, safety in Hadapsar is at par with the central locations of the city. A few major roads that run through the area include the Saswad Road, the Mumbai-Hyderabad Highway and the Solapur Road. The Pune Railway Junction is around 20 minutes from Hadapsar, and the Pune International Airport is about 30 minutes.

Dhanori

Dhanori is one of the well-connected micro-markets of Pune in proximity to the premium areas of Koregaon Park, Vishrantwadi, Tingre Nagar, Viman Nagar and Kharadi, among others. In terms of social infrastructure, the locality houses scores of educational institutions, daily need stores and financial centres. The real estate market in Dhanori has significantly benefitted due to its proximity to the Lohegaon International Airport and the foray of many reputed developers in the area, such as Goel Ganga Developments, Choice Group and Magnum Group. The micro-market comprises numerous high-rise apartments and villas, with a significant share of these developments being RERA-registered projects. The most popular residential unit in Dhanori is 2 BHK configuration in the price bracket of Rs 45-60 lakh.

According to Rohit Sawant, Property Agent, Lavishhomes, Pune, “The real estate investment in Dhanori has grown over the years due to the emergence of several quality projects and its strategic location near the international airport. The availability of ample land parcel in the area has lured many foreign investors. Moreover, since the average home prices in Dhanori are around 40 percent lower than the neighbouring commercial hubs of Kharadi and Viman Nagar, it has caught the attention of investor community. The average property values in Dhanori hover at Rs 5,000 per sq ft, whereas the average property rates in Kharadi and Viman Nagar are around Rs 7,600 per sq ft and Rs 8,700 per sq ft, respectively.”

Dhanori delivered an annual rental yield of four percent in Jan-Mar 2021, while the average yearly rentals during the period surged by around four percent, YoY. 

Vadgaon Budruk

Located along Singhad Road, Vadgaon Budruk is an upcoming suburb of Pune. According to 99acres listings, over 90 percent of the residential developments in Vadgaon Budruk are ready-to-move, and the maximum inventory available for sale is configured as 2 BHK units. In proximity to the Pune-Bangalore Highway, the area renders seamless connectivity to the educational hub of Dhankawadi and other residential clusters such as Nanded, Narhe and Ambegaon. The average property prices in Vadgaon Budruk are pegged at Rs 4,200 per sq ft, and the average rental rates hover at Rs 12 per sq ft. The micro-market has witnessed around nine percent growth in the average monthly rents, YoY, in Q1 2021, while the annual rental yields stand at around three percent.

Vadgaon Budruk is well-known for being home to Singhad Fort and Singhad Dental College, but in the last few years, it has also gained prominence as a budding IT/ITeS hub. A few technology firms present in the area include Mahendra Technosoft, Morgat Software, Spanco Ltd, CodeRize IT Solutions and Web Minds. The locale also has many healthcare centres, educational institutes and entertainment options around, which makes the stay here hassle-free and convenient for the residents.

Keshav Nagar

Keshav Nagar is one of the industrial and IT hubs of Pune that offers good civic amenities and social infrastructure. It is home to the famous EON IT Park that encompasses many companies, such as Zensar, Mphasis, Wipro and Eaton. Phursungi IT Park, Magarpatta City and the Amanora Parktown are approximately 4-5 km from the locality, which makes Keshav Nagar a popular choice among working professionals. The average property rates in Keshav Nagar are Rs 6,000 per sq ft, much lower than the nearby technology hub, Magarpatta, where the values hover at Rs 8,100 per sq ft.

Given the soaring demand from the migrant workforce, the average rentals in Keshav Nagar have surged by six percent, YoY, in Jan-Mar 2021, and the rental yield delivered over a year is three percent. 

Keshav Nagar also boasts of excellent connectivity via Mundhwa Road, Fountain Road and Grant Road. The Pune Junction railway station is approximately eight km from Keshav Nagar, and the airport is about 10 km via Mundhwa Road.

Moshi

Moshi in the Pimpri-Chinchwad Municipal Corporation (PCMC) area has caught the eyes of real estate buyers owing to its geographic location. The proximity to Bhosari and Chakan industrial belt and a famous pilgrimage in Alandi (10 km) has magnetised the realty buyers to the area.  

“The development in Moshi is in lines with Chandigarh. The area has wide roads to sustain high density population. Among the residential projects available for sale, the majority are RERA-registered. Also the property prices in the area are quite affordable compared to other locations nearby. On average, the property values in Moshi are around Rs 4,800 per sq ft, while the values in the Bhosari are pegged at around Rs 5,600 per sq ft. Though property prices in Chakan may range between Rs 3,500-4,000 per sq ft, the quality of projects may vary.”

 Amol More, Property Broker, G&K Realty Pvt Ltd, Pune

To apprise, Moshi delivered an annual rental yield of three percent in Jan-Mar 2021, while the average rentals in the area increased by four percent, YoY. Moreover, the Pimpri Chinchwad Smart City Limited (PCSMCL) has planned to bring Moshi, Ravet, Kiwale and Dighi in PCMC limits under the ambit of area-based development. This would further trigger infrastructure expansion in the locale and thereby the realty growth.

Besides the above areas, Baner, Balewadi Hinjewadi, Punawale and Ravet are a few other locations that generated higher rental yields of three percent in the quarter ending March 2021. Also, these micro-markets have witnessed many new project launches in the last three quarters, presenting homebuyers with a multitude of options to explore before taking the plunge. The average property rates in these areas hover at Rs 5,800-7,800 per sq ft.