Pune Realty Can Be A Goldmine For Long-Term Investors

Pune has been one of the most consistent realty markets of India where housing and office space demand has increased hand-in-hand. All thanks to the promising IT policies of Maharashtra government. It managed to attract both corporate houses, as well as startups, were looking for a favourable climate to sustain their business expenses along with operational connectivity with cities of India. This has created an interesting opportunity for real estate investors who are looking forward to parking their money for longer duration and considering a retirement nest in future. Here are few other reasons that have made Pune, a suitable investment for investors with longer horizon-

Ever growing commercial development

Pune is becoming an eye-candy for e-commerce and tech-based companies. This includes Amazon India that is going to set up its facility centre in Inorbit Mall at Wadgaon Sheri. This is one of the biggest commercial deals finalised in recent years. Apart from this, Redmond Giant has recently established its data centre in the city. There are currently more than 300 funded startups in Pune and the number is growing steadily under NASSCOM 10,000 Startups program. While the rentals are highly attractive and affordable than Bengaluru and Mumbai, Pune is being seen as an alternative destination for startups and data management centres.

Government's intention of pushing Pune as a startup city was made clear when Chief Minister Devendra Fadnavis said that the companies and industries are being provided with approvals within 24 hours through the online system.

Multiple industries in just one city

What makes Pune gain an edge over other cities is its non-dependability on any one economic activity. Unlike Bengaluru, Pune has equally active automobile, manufacturing, research and banking sector. While the manufacturing units are based in the northern side of the city, the banking and finance sectors have made their way into the eastern side of Pune. Very recently, Force Motors acquired 1,30,000 square feet area in Chakan with an investment worth Rs 100 crore. In another development, CISCO is going to set up its manufacturing unit in the city in association with state government. Additionally, General Motors, Fiat, Tata, Mahindra, JCB, Hyundai, Samsung, LG, Philips are other brands who have their manufacturing facility on the outskirts. This is another trigger for real estate development in the city as the demand for rental housing and outright purchase in neighbouring areas in the affordable segment is always high.

Skilled talent pool

As Pune is said to be the 'Oxford of the East', the city has skilled talent pool making the overall climate for any corporate more suitable to function. The locally available resources will ensure the commercial development of the city in future as well. This is another reason why startup eco-system will continue to flourish in the city with cheap workforce and affordable rentals. Being the education hub, the city also has strong demand for rental units in areas close to college campuses and employment hubs of Kharadi, Hinjewadi, Magarpatta etc.

Radial development

Unlike Mumbai, Pune has the benefit of enjoying the expansion radially. In the north, while Pune enjoys its proximity to the financial centre of Mumbai and weekend destination of Lonavla, South Pune stretches up to Kolhapur while eastern side of the city touches Hyderabad in Telangana. This is the reason why outskirts of Pune have remained a popular choice for investors as the development is bound to reach suburbs once the main city area is saturated. These areas have also been bound to welcome commercial development. The value of land parcels and plots close to the highways is huge due to their potential for commercial development, including construction of hotels, petrol pumps and even residential buildings. According to the media reports, ready reckoner rates for 16,000 villages are also set for a hike because of this expected development in near future.

Residential realty

While the most demanded property locations in Pune continues to be amidst job markets of Hinjewadi, Kharadi and Wakad, outskirts of Pune i.e. Pimple Saudagar, Chakan, Moshi, Kothrud are other popular locations where properties are available in the mid-segment.

Despite demonetisation, Pune is one of the cities which have seen positive price movement in the past 45 months. According to the data available with Proptiger, there are over 7,000 projects in the city, out of which more than 5,000 are ready to move while 1,500 projects are under construction. This makes an ideal moment for investors who are looking forward to earning rental income through their property investment.