The amazing growth and rise of Pune’s real estate market can be due to many factors, from the exponentially increasing Small & Medium Enterprises or SMEs to the IT or ITes and also the always improving physical and social infrastructure. But the point to note here is that, many other cities have similar reasons for development but have been reaching saturation point in two to three years of urbanization.
This is not the case with Pune, though, and in fact, the property market of Pune is ever-growing. What is the differentiator that makes Pune different from other emerging cities? Also, how long will Pune sustain this level of real estate growth?
Analysts who track the real estate market in this country believe that an outside view of Pune’s general economy and specifically its property market is responsible for these apprehensions.
The Deciding Factor – Education
Interestingly, many other cities in India that were on their way to becoming preferred corporate destinations lacked one main element that made them only attractive to expat professionals. Pune has that element, which is education, and historically the city has earned the moniker of being the Oxford of the East. This is why Pune’s growth and rise as a sustainable corporate destination has been well rounded.
Everyone who is connected to Pune’s real estate agrees that the city is slowly becoming a city for academic institutes even today. You can argue about the extent to which the education system in the city will act as a catalyst for the growth of Pune’s real estate market, but the education sector has real possibility and this can be assessed by the fact that some of the developers in Pune are now planning to venture into the education industry because they anticipate immense opportunities.
An important point to note here is that while education could be the catalyst for other cities and instigated the demand for real estate development, the growth of academic institutes in those cities was not sustainable because they followed only the corporate demand of a specific business that does well in that particular city.
In contrast, in Pune, IT and ITes may be one of the in-demand zones of education, but it is not only IT and ITes driven academic institutes that are growing. It is a fact, and industry players also agree, that the education industry in Pune has grown in all segments, not just IT and ITes but also other vocational or professional education.
Micro-markets Ideal for Newcomers to Pune
The best residential flats in Pune for newcomers to the city can be found in areas like Bibvewadi, Central Pune, and Koregaon Park. These areas have well-developed infrastructure, schools, entertainment hubs, and hospitals. However, flats for sale in Pune in this area may be a little expensive.
Alternate options of residential flats in Pune for sale can be found in Magarpatta and Hinjewadi, which are located near to IT hubs and other companies and prices are more affordable in these areas. Good Property for sale in Pune can also be found in the outskirtsof the city, like Ravet, Talegaon, Wagholi, Undri, and Wakad. Hadapsar is also a popular location for people wanting to buy property, from an investment aspect. These localities have good potential for capital appreciation and rental income.
Key Points for Real Estate Investors
These are points to consider for prospective investors in real estate, especially if they are outsiders in Pune:
- Understand why you are purchasing the flat – is it for rent or self-use or investment or resale?
- If you want to move in, do you want to do it quickly or sometime later in the future?
- If you want to move out later, you should check the existing rental market to evaluate the return on investment.
- If you are purchasing a property for self-use, find out if the physical and social infrastructure in the area meets your needs.
- Check your home loan eligibility with banks before you make any down payment on a property.
- Always have a consultation with a real estate expert to find out more about the locality you are interested in and the flexibility in selling and buying the house.
Pune’s Real Estate market is on a good rise, and you can invest in it, but you should do your homework first and then jump in!