Why Does Pune Remain Investors' Favourite?

When it comes to a city's attractiveness as a real estate market, facts speak louder than theories and assumptions. So far as Pune, the cultural capital of Maharashtra, is concerned, here are a few facts that speak for themselves:

• New launches: According to PropTiger DataLabs' monthly report -- Realty Watch April 2016, West -- new unit launches in Pune increased 85 per cent over the previous month, even as West India (Mumbai, Ahmedabad and Pune) as a whole witnessed a decline of 24 per cent in launches during the same period. Pune accounted for about 60 per cent of the launches in West India. At a time when new launches remained subdued in India's financial capital Mumbai for a fourth straight month, and Ahmedabad witnessed no new launches, an increase in Pune is a clear indication of the consistent demand for real estate in the city. 

• Property prices: Property prices in Pune in March appreciated in the range of 2-18 per cent across localities on a year-on-year basis. "Viman Nagar has led this surge, witnessing an average increase of 18 per cent on a year-on-year basis," says the DataLabs report. While the real estate sector is going through a rough patch, a city witnessing growth in prices is a clear sign that Pune's real estate is making a healthy progress.

But what makes real estate in Pune so desirable? Here are a few reasons:

• Economical city: The cost of living in India's financial capital Mumbai is much higher than on Pune. Also, real estate in the latter is far more affordable. For the same amount of money, you can own a bigger property in Pune than in Mumbai. For instance, the report shows you pay Rs 13,000 per sq ft for a newly launched project, Alta Vista by Spenta, in Mumbai's Chembur. Whereas, you have to pay Rs 3,690 per sq ft for purchasing a newly launched project, Venice by Majestique Landmarks, in Pune's Dhayari. The two localities are comparable in terms of infrastructure. 

• Investment market: To attract investors' attention, a real estate market has to provide them a good infrastructure, apart from good returns. Pune, an automobile and information technology hub, inspires huge confidence among non-resident Indian investors as well. 

• Employment opportunities: With more and more companies setting up shop in Pune, employment opportunities in the city are growing. This, in turn, is attracting more and more working population to the city. This triggers huge real estate demand in both residential and rental housing markets. 

• Education infra: An educational hub, Pune boasts educational institutions of towering fame. Students that move to the city in huge numbers each year again push the city's rental market towards growth.

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