Good days ahead for Pune real estate
Pune real estate market is among the fastest growing in India. It has become one of the most sought-after residential destinations in India due to proximity to Mumbai, comparative affordability of property market and rapidly developing infrastructure.
In 2012, property prices have increased by 12 percent in Pune and the appreciation is expected to be in the range of 12 percent to 15 percent in 2013. While localities like Bhosale Nagar, Hinjewadi, Kondhwa and Undri have been in high demand over the past few years, Koregaon Park has emerged as the costliest locality in Pune.
Koregaon Park: The realty hotspot
Koregaon Park has always been the locality to be dotted with luxury homes and bungalows. However, the establishment of Osho Commune in the late 1970s transformed the scenario of the locality forever. Over the years, Koregaon has become a magnet not only for residential development but also for commercial and office space development.
Current residential property rates stand at Rs 16,000 – Rs 17,000 per sq ft in Koregaon. Commercial rent rates are around Rs 60 – Rs 70 per sq ft. Its proximity to Kalyani Nagar, the IT/ITeS hub is a major push for real estate market as well.
Koregaon has attained the stature of a signature address in Pune and property rates have jumped up to 5 times over the last 5 years, making it a treasure for real estate investments. Koregaon has world class schools and colleges like Vibgyor and St Mira’s and popular hangout joints such as restaurants like Oakwood Hotel, The Westin and Park Central.
Koregaon is located near to both Pune International Airport and the railway station. It is only 6 kilometers away from the Airport and only 4 kilometers away from the railway station. The neighbourhood is one of the most posh ones in Pune and it is being in demand from High Net Worth Individuals (HNIs).
Infrastructure development
Although Koregaon’s elevation as the real estate destination numero uno seems natural, infrastructure has had a big role to play in it. The locality boasts of superior civic amenities, thanks to its upmarket reputation. However, traffic congestion has been a big issue in Koregaon as well as in the entire stretch from Koregaon Park and Mundhwa to Magarpatta. The entire stretch is dotted with education institutes, entertainment avenues, as well as residential complexes and traffic congestion makes it even more difficult to commute.
To end the traffic woes, a road is being constructed from Koregaon Park and Mundhwa to Solapur Road. The new D.P road from Mundhwa to Magarpatta City is expected to curb the traffic congestion to a great extent, providing relief to the commuters, especially during the morning peak hours.
Once the road will be fully developed, the distance between Magarpatta and Koregaon Park will be easily commutable, improving the connectivity with the Central Business District to a large extent.
Healthy realty prediction for 2013
As per records, the amount of inventory level is almost equal to 9 months’ stock. It means that there is no dearth of supply and absorption level is expected to be quite healthy.
Since Pune real estate market was one of the best performers in 2012, Mumbai-based NRIs and investors are looking to put their money in to Pune real estate in 2013. Demand for homes will go up due to stronger demand from IT/ITeS sector as well as the manufacturing sector.
In case of commercial real estate too, Pune fared well. The office rentals rose by 18-22 percent during 2012. As there was limited supply of Grade A office space, rentals rose by 16 percent in Central Business District (CBD) – comprising of Koregaon Park, Camp, Wakdewadi, Shivaji Nagar and Senapati Bapat Marg. In secondary business district areas like Hinjewadi, Bhosari and Kharadi the rise was quite higher – 25 percent. Office space absorption is expected to rise in 2013, reflecting the investors’ confidence in Pune property market.
