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Pune is hailed as an educational hub, which attracts students not only from different parts of Maharashtra, but also from all over the country and abroad. The city is home to several prestigious institutes, including the Deccan College of Archaeology, National Defense Academy, College of Military Engineering, Fergusson College, FTII, Symbiosis, Pune University and many others.
“Pune is no longer a mere ‘pensioner’s paradise’. Although it remains a preferred retirement destination, the youthful element that drives the city, is hard to miss. The city, which is called the ‘Oxford of the east’, has a massive number of educational institutions, which directly boost the demand for housing, as well as retail, entertainment and F&B real estate,” explains Sanjay Bajaj, managing director – Pune, JLL India.
What drives Pune’s property market?
The presence of excellent educational institutions in Pune, attracts students from all over the world. A number of companies have established their offices in the city, considering the large pool of talented professionals that pass out from the institutes. The city also has several malls, multiplexes, pubs and leisure and entertainment options, as well as cafes, fast food outlets and restaurants that serve various types of cuisines.
“Excellent education and employment opportunities, combined with pleasant weather and a cosmopolitan population, are the major factors that have led to the phenomenal growth of Pune’s realty sector. A large number of students live in rented apartments and they invest in properties, once they are employed,” explains Vivek Mohanani, joint MD, Ekta World. This is fueling the demand for all kinds of residential projects, as these young graduates demand innovative, technologically advanced, and fully functional living spaces that are at par with global standards, adds Mohanani.
Educational institutes’ influence on Pune’s rental market
High rentals in big cities like Mumbai, discourage students from living in the city. Pune, hence, emerges as a viable alternative.
“With a large number of students coming to Pune, they need accommodation. Consequently, investors have good scope to earn rental income and Pune’s real estate market is influenced by this trend to some extent. Rental values in the city have risen, owing to a stable job market, IT industry and growing demand from rental home seekers,” says Shanta Chhabra of Tulsi Properties.
Developing areas in Pune
While Pune is expanding in all directions, recent developments have been seen in areas between Mumbai-Pune and towards Kolhapur, says Mohanani.
“Areas towards the outskirts of Pune, like Chakan, Kharadi, Hinjewadi, Mundhwa NIBM Rd and Nagar Road, are also witnessing development of residential and commercial spaces. Areas like Camp, Koregaon Park, Aundh and Baner continue to be in demand, as they are prime locations. Eastern Pune has witnessed substantial growth, owing to its proximity to IT parks and the airport. Per sq ft rates in Pune, start from around Rs 3,500 and can go up to Rs 6,500, depending on the location of the property,” adds Mohanani.
Affordable housing and rental options in Pune
To cash-in on the significant demand from students, several landlords are offering affordable housing options near the campuses. “This is a driving factor for investors to buy flats/properties and rent it out to the students.
“The established education-driven locations that offer affordable accommodation options in Pune, are VimanNagar, Kharadi, Kalyani Nagar, Wadgaon Sheri, FC Road, Deccan Gymkhana, Shivajinagar, Law College Road, Senapati Bapat Road, Erandwana, Kothrud, Paud Road, Karve Road, Pune University Area and Pashan Road.
“Institutes offering residential courses can also be spotted in the outskirts of the city in areas like the Mumbai-Pune Highway, Mulshi, Lavale and Solapur Highway, due to the availability of land and serene environment. Hence, demand for real estate in these locations is also on the rise,” concludes Vidip Jatia, director of Belmac.