Pune Realty market demand driven by migrants

There is a growing trend among IT dominated cities like Bangalore, Gurgaon and Pune with the migration of professionally qualified and well-earning IT professionals. With Pune developing into a major IT city in recent times, the realty market of the city is currently driven primarily by IT employees who have migrated from other parts of the country. Such expats are characterised by being upwardly mobile with higher disposable incomes, and seeking a cosmopolitan lifestyle. Besides the IT sections, the realty market of Pune is also driven by expats working in other sectors like the automobile, manufacturing as well as education sectors. The high supply of residential options is also enhancing the demand among expats working in the city.

Reasons for migrating

Most migrants to the city comprise people from Mumbai and neighbouring districts of Pune while a large proportion also consists of expats from other states. Some of the various advantages that the city offers such expats is proximity to Mumbai (particularly for people belonging to Mumbai), the immense educational and employment opportunities, the pleasant climate all through the year, the cosmopolitan lifestyle as well as diverse residential options that the city offers. The city also offers excellent connectivity through road to neighbouring districts and cities. The connectivity along the Pune-Ahmednagar-Aurangabad route as well as the well-acclaimed Pune-Mumbai expressway has gone a long way in prompting expats to purchase a second residence in Pune.

 
Chief drivers of demand

There are four major sectors that drive the realty sector of the city namely IT, automobile, manufacturing and education. However, the IT/ITeS sectors are the key drivers of demand, with many projects exclusively being taken up by employees of these sectors. Besides, another important driver of the realty of Pune is by people from Mumbai. An important factor responsible for people in Mumbai choosing Pune for investing in a home are its proximity to Mumbai as well as the high cost of realty in Mumbai. Most of the residential property purchased by expats with high disposable and dual incomes come in the Rs 50 lakh to 1.5 crore range. The NRI population also contributes chiefly to buyers in this price range.

Affordable areas

Apart from upmarket residential property, there are many expat buyers who are interested in residential property in the Rs 20-50 lakh price range. Buyers in this price range are primarily employed in the manufacturing and education sectors. Most of the residential property purchased in this price range is towards the outskirts of the city, in areas like Talegaon, Chakan, Ravet, Pimpri-Chinchwad, Bhosari, Akurdi, Rahatani, Alandi, Lohegaon, Chikhali, Kiwale, Dighi, Hingewadi, Moshi, Ambegaon, Kondhwa, Manjri, Wagholi, Pirangut, Punavale and Charoli, among others.

Sections of migrant buyers

Incidentally, Pune has a large proportion of migrant population of about 30 per cent, with about 1.2-1.5 lakh people migrating to the city every year for education and employment. Mid-income buyers are encouraged to invest in the city primarily due to the affordability, social amenities, connectivity as well convenience. HNIs expats have contributed largely to the growth in the luxury residential market. NRIs are prompted to invest in residential property in the city primarily due to the appreciating foreign currency rates. Besides, it serves as an ideal destination for them to come down during their vacations. Moreover, it also serves as a retirement home in their twilight years.