Pune, the second most populous metro city in Maharashtra after Mumbai, has long been a major educational and cultural centre, thus, earning the moniker the ‘Oxford of the East’. Previously home to traditional industries, Pune has seen a significant change, benefitting from the Maharashtra government’s IT/ ITeS policies. IT parks such as the Rajiv Gandhi Infotech Park and the Hinjewadi IT Park, act as the epicentre of the IT industry in Pune. The city’s proximity to Mumbai and the presence of an international airport, coupled with access to high-quality education and talent pool, have acted as the catalyst to attract several multinational companies to the city, which is also home to more than 400 local start-ups. Pune is now considered to be one of the top IT hubs in India. Along with the IT industry, Pune is also home to many global and domestic automobile companies like Mercedez-Benz, Volkswagen, TATA Motors, Mahindra & Mahindra, etc.
Over the past decade, many infrastructure projects have come up in the city to improve intra-city, regional and international connectivity. The Bus Rapid Transit System (BRTS) corridor, the metro rail and the ring road, are currently proposed to improve the connectivity within the city. Four routes under the BRTS corridor – Aundh-Ravet, Sangamwadi-Vishrantwadi, Nashik Phata-Wakad and Yerwada-Wagholi, are already functional. Several social and physical infrastructure development projects such as road improvement, recreational parks, etc., have also been proposed for Pune, under the Smart City mission. Also, apart from the Expressway connecting Pune and Mumbai, a hyperloop project has also been announced, which will reduce the travel time between the cities, to 25 minutes.
The economic opportunities and well-planned infrastructure have made Pune an attractive commercial and residential real estate destination. The city has been one of the best-performing residential markets in terms of demand, after Mumbai, attracting many prominent developers to this city.
The latest property market trends in the city suggest the following:
- New supply in Pune registered a triple-digit growth, 154 per cent YoY growth in 2022, with a total of 75,309 units launched as compared to 29,608 units in 2021. Similar to Bengaluru and Hyderabad, the city is witnessing growth in residential activity on the back of a rise in end user demand as IT and ITeS offices have gone back to work full-time or on a hybrid model post the pandemic.
- Most (40 per cent) of the units were launched in the price range of INR 45-75 lakh, followed by 21 per cent in the INR 25-45 lakh price bracket. Developers mainly focused on the 2 BHK configuration, which accounted for 54 per cent of the new launches.
- Micro-markets such as Moshi, Ravet, Hinjewadi, Kharadi and Wagholi accounted for the maximum number of new launches in 2022.
- On the sales side, a total of 62,029 units were sold in Pune in 2022, as the residential demand registered a growth of 46 per cent YoY in 2022.
- Pune recorded the second-highest sales among the top eight cities after its western counterpart Mumbai. The city took a 20 per cent share in the national sales tally.
- Locales such as Hinjewadi, Ravet, Moshi, Wagholi and Tathawade, Mahalunge and Wagholi witnessed maximum buyer activity, taking 24 per cent share in the overall sales. The western micro-markets in the Pimpri-Chinchwad region are gaining traction owing to relative affordability, combined with the presence of IT hubs and connectivity through major roads have attracted the homebuyer interest in these micro markets.
- Of the total sales, 33 per cent were concentrated in the INR 45-75 lakh price bracket, closely followed by the INR 25-45 lakh price range with a share of 31 per cent, respectively. Homebuyers preferred apartments with a 2 BHK configuration (53 per cent), followed by 1 BHK (28 per cent).
- Pune holds the second-highest unsold stock amongst the top eight cities. The unsold inventory stood at 1,32,331 units at the end of 2022, registering a positive decline of 11 per cent YoY.
- The inventory overhang stood at 26 months at the end of 2022, which means it will take 2.1 years to offload the current stock.