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Pune, a prominent real estate and commercial hub in India, showed a greater degree of resilience in the face of the COVID crisis. Last year, in Q1 2020, a total of 7,229 units were launched against a sales volume of 9,871 units, showing strong sentiments. However, in the 2nd quarter, as the pandemic spread, numbers plummeted. Total launches were just a little over 1100 and quarterly sales were pegged at 3,000 units. By the end of the year, however, the market recovered with quarterly sales crossing 8,000 units.
This year, the upbeat sentiment has been softened by the second wave. Yet, Pune’s realty market will continue to garner momentum. Pune’s ability to contain the COVID-triggered crisis is rooted in numerous factors. Firstly, it is primarily an IT & ITeS driven market with an estimated workforce of 400,000 employed in the IT & technology sector itself. The IT job market in India has been nearly recession-free, which helps in feeding into increased demand. Likewise, a revival in the automobile sector will also stimulate increased realty demand in the city. Pune accounts for around 20% of the MOUs, FDIs, and other institutional investments in Maharashtra.
Secondly, Pune has plenty of affordable properties in the 40-75 lacs range, which syncs well with the workforce employed in the IT, manufacturing, and engineering sector. Thirdly, the city has come strength to strength in terms of developing its civic amenities, public facilities, and physical infrastructure, thereby ensuring a higher standard of living at an affordable price. This has not just attracted domestic buyers but also NRIs. Fourthly, Pune’s mid-income realty market augurs well with a lowered home loans in India. Pune mostly has working professionals for whom loans constitute a major chunk of property purchases. Lastly, Pune’s weather and its formidable reputation as a pensioner’s paradise have also helped in accelerated residential sales.
Focus on Peripheries
Over the past few years, Pune has been witnessing a gradual shift towards its peripheries. The Rajiv Gandhi IT Park, one of the largest IT parks in Asia has been a game-changer for residential demand in areas such as Hinjewadi, Baner, Wakad, etc. Likewise in the eastern suburbs, IT centers such as Magarpatta City and Fursungi IT park have resulted in demand boost in micro-markets such as Hadapsar, Wagholi, Viman Nagar, Kharadi, Mundhwa, etc. Proximity to employment hubs and affordable property prices played a major role in driving demand.
The trend towards shifting to suburbs further got a shot in the arm during the pandemic. As most of the IT companies are working on a WFH basis for an extended period, homebuyers are shifting to affordable suburbs in search of bigger and more spacious houses. The commute is no more concern now and the key focus is on bigger areas, increased greeneries, open spaces to ensure safe and sustainable living.
As residential demand is on an upswing in these micro-markets, the social infrastructure is also developing fast marked by the growing footprint of shopping malls, high street retail, educational institutions, healthcare facilities. Micro-markets like Hadapsar, Viman Nagar, Baner, etc. are relatively more developed. Other micro-markets such as Mundhwa, Hinjewadi, etc are now gradually catching up, on the back of a recent spurt in demand.
Growth in Physical Infrastructure
Pune has made notable progress in terms of infrastructure growth and civic amenities. The growth in infrastructure will give thrust to the housing demand in the city.
The initial metro line termed as the purple line will connect the Pimpri Chinchwad region to Swargate. The municipal body has given nod to further extend it to Nigdi, a suburb in the Northern parts of the city. The second line, named as Aqua line will connect Ramwadi to Vanaz. The third line will connect Hinjewadi with the Civil Court. All three mass transit lines are presently under construction with work going full swing.
The Maharashtra government has announced to develop 170 KM long Outer Ring Road (ORR) for INR 15,000 Crores, which will result in the decongestion of Pune by diverting traffic coming from other cities. The ORR is expected to be completed by 2024. Work will also commence on a greenfield airport project in Pune, which will help the city feature on the international travel map.
360 Realtors’ Initiative: E-Propshow in Pune
360 Realtors is active in Pune Market since 2013 and is a go-to brokerage platform for both end-users and investors. 360 Realtors in partnership with some of the leading developers in Pune is coming with its second installment of E-Propshow, one of the largest virtual property shows in India. Over 20 developers are expected to participate in the virtual property show. The property show, which will be conducted on 9th, 10th, and 11th of July, is expected to clock a total of over 50,000 registrations. In a time, when people avoid going out and prefer contactless transactions, virtual property shows offer a dynamic platform for both developers and discerning home buyers.
While developers can reach out to a large volume of discerning home buyers and showcase their products; buyers can learn in detail about various projects, know more about payment plans available and accordingly make informed decisions. The virtual Propshow will also witness exciting discounts and offers. There will be a host of panel discussions and webinars to make the entire event educative and engaging and offer incisive analysis on the Pune real estate.
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