Central Pune areas like Prabhat Road and Bhandarkar Road have limited availability of land for residential development. Demand drivers in Central Pune include proximity to offices, hospitals, and courts. Western Pune areas like Aundh, Baner, and Hinjewadi are preferred due to proximity to the IT belt and connectivity. Eastern Pune areas such as Viman Nagar, Kalyani Nagar, and Kharadi are in demand for their retail, education, and IT opportunities. 2 BHK units will see the strongest demand due to the large young professional population. The Pune market is becoming more investor-driven compared to the historical end-user model.

1. Pune Residential Market Review

2. PUNE CITY OVERVIEWPUNE CITY OVERVIEW

3. Pune City
Surrounded by the Sahyadri Mountains of the Western Ghats, Pune sits at the confluence
of the Mula and Mutha Rivers. Dubbed once as the Oxford of the East, on account of its
reputed academic institutions, it is perhaps today more than that – a repository of
Maharashtrian culture, a preferred destination for automobile manufacturers, a haven
for Information Technology professionals and Maharashtra’s answer to Bangalore!
A mere 150 km east of its glamourous sister city Mumbai, Pune is the perfect foil to it –
lush surroundings, imposing hills, green valleys, clear rivers, a relaxed pace of life and yet
the seductive appeal and glitter of a large metropolis.

4. MAPPING PUNE RESIDENTIAL MARKETMAPPING PUNE RESIDENTIAL MARKET

5. Zone Major Areas
Central Pune
Bund garden Road,Koregaon Park,Model Colony,Deccan, Shivaji
Nagar, Kothrud, Swargate
Northern Pune Pimpri, Chinchward,Moshi,Nigdi,Dighi
Southern Pune Katraj,Warje, NIBM, Kondhwa, Undri
Eastern Pune Yerwada,Kalyani Nagar,Viman Nagar,Wagholi,HadapsarEastern Pune Yerwada,Kalyani Nagar,Viman Nagar,Wagholi,Hadapsar
Western Pune Aundh,Baner,Pashan,Bavdhan,Wakad,Balewadi,Hinjewadi,Ravet

6. Average Price Per Sqft for Residential Properties in Pune

7. There is ample supply of residential properties in Pune, however because
of strong investor demand prices are expected to rise gradually
42,637
33,104
20,443
38,809
40,452
33,155
15000
20000
25000
30000
35000
40000
45000
Residential Launches in 2012 has been lower than 2010- 2011 as market remain busy absorbing
inventory created from 2010 launches. Residential real estate prices in Pune are expected to continue
their upward momentum owing to increasing input costs to the builders, coupled with increased investor
demand from the peripheral areas of Pune and from the NRIs.
0
5000
10000
2007 2008 2009 2010 2011 2012
Residential Property Launches

8. Supply – Demand Situation of Pune Residential Market
Pune residential market has historically been an end-user driven market which has ensured minimal price
volatility. However, 2007 onwards investor participation has witnessed an increasing trend with local investors
as well as those from Mumbai buying properties in the peripheral areas. This is despite the fact that most of the
developers discourage investor participation by restricting re-sale before possession.

9. Drivers of Pune Residential MarketDrivers of Pune Residential Market

10. IT Industry as growth driver for Pune residential market
Increasing growth of IT /ITeS industry has provided strong growth in job opportunities in
past few years, leading to higher per capita income in Pune compared with average for
Maharastra

11. Infrastructure development in the city is also supporting growth

12. Infrastructure development in the city is also supporting growth

13. Pune has estimated - 500 builders of which 296
builders are registered with CREDAI
Builders are bound by code of ethics to
promote highest standard of promotion,
Builders in Pune
promote highest standard of promotion,
development and construction activities
Applicable FSI in the PMC and PCMC limits is
1.0. In addition a TDR of 0.6 is given for PMC
and 0.4 for PCMC area.

14. Regional AnalysisRegional Analysis

15. Central Pune Summary
• Prabhat Road is named after the Prabhat Studio which is located at the beginning of
the road viz. is one of the primary arteries of the Deccan Gymkhana area. This road
connects the Law College Road to the Karve Road. The area is primarily residential,
however the Deccan Gymkhana area is fast developing into a business district and
hence the presence of a number of offices too on this road.
• Land availability in the central city is limited and traditional residential areas like• Land availability in the central city is limited and traditional residential areas like
Prabhat Road and Bhandarkar Road have very few locations suitable for the
development of residential real estate.
• As compared to other regions in Pune, there are no major residential developments
other than standalone buildings in this part of Pune. Though there are maximum
hospitals, Government Offices and Courts in the vicinity.
• Pinnacle Group, Alliance Group, Rachana developers, Javadekar developers,Oxford
Properties and Marvel Realtors are some of the prominent developers in Central Pune.

16. CENTRAL PUNE – Growth Drivers
• Shivaji Nagar is close to Pune Railway Station and houses corporates such as L & T
Infotech and institutes such as Indian Institute of Planning and Management.
• Deccan is a cultural district and houses many art galleries, theaters and cinema halls.
Deccan also is an educational hub of Pune, comprises of the areas of J. M. Road, F. C.
Road, University Road, Law College Road and Senapati Bapat Road.
• J. M. Road and F. C. Road are the most prominent high streets of Pune with prominent
retail players vying for this micromarket.

17. Western Pune Summary
• Prominent areas in Western Pune included Aundh, Sindh Society, National Society, Parihar Chowk,
Anand Park, Ashiyana Park,Gaikwad Nagar amongst many.
• Aundh is a bustling location and has emerged as one of Pune's up-market areas. An improved road
network has enhanced its connectivity with the central parts of Pune. Paud Road and Kothrud are
traditional Maharashtrian localities and draw a similar clientèle. Kothrud has expanded till Warje on
Karve Road and till Chandani Chowk in Paud Road. Baner is an extension of Aundh and has veryKarve Road and till Chandani Chowk in Paud Road. Baner is an extension of Aundh and has very
good proximity to Pune-Bangalore Highway. Baner has become a popular destination amongst
those who desire to be near the Aundh area but prefer a more affordable option and also emerged
as an IT hub of Pune.
• Hijewadi, started in 1998, has ushered the IT growth in Pune. Prominent IT players like Infosys,
TCS, Wipro, IBM have set up their centres at Hinjewadi. It is one of the growth corridors of the west
region of Pune.
• Gera, Kumar Properties, Kolte Patil, Aditya Builders, GK Developers, Nyati, Paranjpe, Pride Purple,
Vascon, and Wadhwani Constructions are some of the prominent developers in West Pune.

18. WESTERN PUNE – Growth Drivers
• Proximity to Rajiv Gandhi Infotech Park, Hinjewadi and the Mumbai-Bangalore by-pass
has boosted real estate activity in this area, seen by many as one of the future key
growth areas.
• Aundh has witnessed a lot of development in the past one year, with a large number of
shopping centers and supermarkets like Ozone Reliance Mart, Croma etc.The
residential rates in this area have been driven up by the huge demand coming from IT
professionals as well as migrants from various parts of the country, its close proximity
to the Mumbai-Pune express way and superb connectivity to Shivaji nagar, make itto the Mumbai-Pune express way and superb connectivity to Shivaji nagar, make it
more preferable to reside than other parts of the city.
• Pashan and Baner are situated in the vicinity of the IT Park at Hinjewadi and the
Mumbai-Bangalore Highway.
• Good transaction of residential houses are witnessed in Kothrud for its good
infrastructure and cultural heritage.
• Residential demand in the region to witness strong growth in areas like Baner, Wakad
and Hinjewadi owing to the proximity to the IT belt and Mumbai-Bangalore Highway.
• Investors from Mumbai are also interested in buying property in Hinjewadi on account
of easy access from the Mumbai-Pune Expressway.

19. Eastern Pune Market
• Over the last few years Viman Nagar and Kalyani Nagar has become one of the finest
locations in Pune with many exclusive and luxurious residential projects, IT parks,
hotels and educational institutes. It is well connected to the central area of Pune.
• Major retail development is witnessed in East Pune. Phoenix Market city, Amanora,
Inorbit Mall, Koregaon Park Plaza and G Corp Pulse Mall to name a few are located
here.
• Hadapsar and Kharadi have emerged as preferred locations for the IT/ITES sector.
These locations serve not only as hubs for IT activities but are also preferredThese locations serve not only as hubs for IT activities but are also preferred
residential destinations promoting the 'walk to work' culture which is fast becoming
popular.
• Wagholi though being outside city limits, is a warehousing and Industrial hub of East
Pune and has witnessed major real estate movement owing to affordability factor and
land availability.
• Due to its proximity to Koregaon Park and Kalyani Nagar, Mundhwa has also
experienced good development in the last few years.
• Prominent developers in this region include Marvel, Kolte Patil, Goel Ganga, Kumar
Builders, Panchshil, Nyati, Vascon and Brahma

20. EASTERN PUNE – Growth Drivers
• Viman Nagar is preffered location due to its proximity to airport and improved
connectivity to the city.
• Kalyani Nagar, located in the vicinity of upscale neighborhoods like Koregaon Park,
Boat Club Road and Mangaldas Road, is the next prime location though has limited
scope for future residential development.
• Mundhwa offers a good mix of cosmopolitan crowd and is also close to Koregaon park
and M G Road in Camp.
• Widening of Nagar Road improved the connectivity and led to higher office space
demand in the Eastern Corridor.
• Kharadi and Hadapsar, are strategically located towards the east of the city close to
the airport and railway station, also a gateway to Pune via the Nagar Road and
Solapur Road respectively.

21. North Pune Summary
• The main localities in North Pune are Chinchwad, Pimpri, Nigdi, Akurdi, Kalewadi and
Bhosari. It lies on the Pune-Mumbai highway (NH 4). Pimpri Chinchwad is a major
industrial hub and one of the the biggest industrial zones in Asia.
• Nigdi is a suburb of Pune, which is about 18 km from Pune Station on the old Mumbai-
Pune Highway.
• P.C.N.T.D.A. (Pimpri Chinchwad New Township Development Area), which is also• P.C.N.T.D.A. (Pimpri Chinchwad New Township Development Area), which is also
known as Pradhikaran is a planned township. This total area is divided into several
sectors.
• Akurdi Railway Station of Pune Suburban Railway is in Nigdi Pradhikaran. Nigdi is well
connected to Pune City by buses leaving from Nigdi Bus terminal of Pune Mahanagar
Parivahan Mahamandal Limited.
• Mindspace Realty, Naiknavare, Namrata Dev and Goel Ganga are some of the
prominent developers in North Pune.

22. NORTH PUNE – Growth Drivers
• Accessibility to the Technology Park (Talawade), IT sector (Hinjewadi) and other
industrial areas (Talegaon, PCMC) will propel the real estate growth in Pimpri-
Chinchwad.
• Excellent infrastructure and connectivity to Central Pune are the key positives of this
area.
• Ravet also witnessed major developments due to its affordability and project launches.

23. South Pune Summary
• Sinhagad Road houses the Institute of Armament Technology (IAT) and the Sinhagad
Institute.The road further leads to the base of the famous Sinhagad Fort.
• Mohammadwadi, surrounded by hills with scenic beauty, has beautiful bungalows.
• Kondhwa has evolved as an important residential area in the recent past. While the
area towards Katraj is developing as a low cost housing destination, with the budget
factor weighing in more here, the area towards Wanowrie and NIBM is becoming a
preferred location for premium housing.
• Major builder in this area D.S.K, Nyati, Kumar Properties, Marvel, Kolte

24. SOUTH PUNE – Growth Drivers
• With the Bangalore Bypass and the Expressway running alongside, Ambegaon has acquired
a new facet. Ambegaon is strategically located and has excellent accessibility from Katraj,
Sinhagad Road and Kothrud.
• As Kothrud in West Pune has become a premium location, customers have started moving
towards Sinhagad Road and Ambegaon area.
• Property price of Sinhagad Road has been witnessing an upward trend due to the demand
spilling from Kothrud which has a scarcity of land parcels.
• Katraj has some good educational institutes like the Bharti Vidyapeeth Dental College and
Rajiv Gandhi Institute of IT and Biotechnology.
• Undri, Pisoli has been witnessing major real estate activity owing to availability of land
parcel,best schools and International Institutions (DPS, Vibgyor) and hospitals (Inamdar
Hospital , Ruby Hall).
• Apartment buyers are showing a greater preference for NIBM, Kondhwa and Lullanagar
where development is planned, open land exists, and water supply is better. Moreover, it
offers excellent connectivity to M G Road and Magarpatta.

25. Market InsightsMarket Insights

26. North West Pune – Increasing Supply
North-West region accounts for highest share of supply at 45 % - main region being PCMC
and IT hub of Hinjewadi. The region has low vacancy level at 19% due to growth in new
residential areas with upcoming IT locations. Saturation of residential area in the existing
IT belts will lead to development of areas with better connectivity and proximity to offices -
Residential demand in the region to see strong growth in regions like Baner and Wakad.

27. Western and Eastern Pune will remain hot for property Investment
• Over the years, the IT/ITeS sector has emerged the largest employer in Pune and
reshaped its real estate market. The setting up of Rajiv Gandhi Infotech Park in
Hinjewadi resulted in companies such as Infosys, Wipro, TCS and Tech Mahindra
establishing their global delivery centres here. In the next 5 years Hinjewadi is going to
develop as India's largest office hub. Prefernce of employees staying closer to work
and given high prices in Central Pune region will lead to increase in rates in adjacent
areas such as Baner, Balewadi, Ravet and Bavdhan. Wakad has already emerged as
preferred destination for people working there.
• East Pune is being largely driven by the CBDs in Kharadi, Viman Nagar, Magarpatta
Cyber City and Kalyani Nagar. A mix of BFSI, IT and BPO industries is present in this
section of the city.

28. There is an increasing tendency among
investors to draw a clear demarcation
between East and West Pune while
investing, with regards to where they can
expect better returns.
However, Western Pune is the
preferred investor destination
expect better returns.
West Pune is preferred over other zones.
Although in terms of social infrastructure
West Pune still lags; we expect this gap to
be filled up rapidly in the coming years. A
large number of educational institutes,
organized retail and entertainment avenues
are expected to become operational here in
next 5 years.

29. Demand for 2 BHK will be strongest
As Pune is emerging as an IT hub, and most
of the working crowd is predominantly
between the age bracket of 25-35 years. This
is a stage in life when working professionals
start a family.start a family.
The requirement is predominantly of a 2BHK,
as the family comprises of a husband, wife
and one or two kids.
Moreover, double income families can be
expected as a substantial part of the IT-BPO
workforce comprises of women. This dual
income makes this configuration affordable.

30. Pune residential market has historically
been an end-user driven market which
has ensured minimal price volatility.
However, 2007 onwards investor
Pune Market is changing to
Investors market
However, 2007 onwards investor
participation has witnessed an increasing
trend with local investors as well as those
from Mumbai buying properties in the
peripheral areas. This is despite the fact
that most of the developers discourage
investor participation by restricting re-
sale before possession.

31. Changing Northern Pune Market
North Pune, where majority of the existing manufacturing plants are located, will benefit
from the growth in the Auto & Auto Ancillary sector. However, the impact of this will be
limited as no new units are being set up here due to the paucity of large vacant land
parcels and high cost of existing land.
The attractiveness of Pimpri Chinchwad as the manufacturing hub is slowly fading out, with
many companies shifting their units to alternate cheaper locations. Most of the new
manufacturing plants are coming up along the periphery of Pune like Chakan and
Ranjangaon which are located 32 km. and 50 km. away from the city centre respectively.
Hence, no significant benefit of incremental employment will be felt on North Pune.

32. South and Central Pune will see lower appreciation of rates
South Pune is not expected to gain in the residential market, as it is primarily dependent
on East and West Pune where most of the employment hubs are located. Additionally,
prices here are equivalent to most of the emerging destinations of East and West Pune
leaving little room for further appreciation.
Central Pune locations like Apte Road, Bhosle Nagar, Deccan, Model Colony, Prabhat
Nagar and Shivajinagar are witnessing a lot of redevelopment projects. Land is scarce in
these areas. Moreover, builders are constructing stand-alone luxury units (above INR 1
crore) and this location commands an address premium, however in terms of returns it will
be limited.

33. Flatons Advisors
3, Alpha Building
Lane no 12
Kalyani Nagar,
PunePune
Tel: 020 41 2040 60
E : Support@flatons.com
W: http://www.flatons.com