Saturday, May 10, 2008

Pune growing on all sides

As per Times of India, all periphery areas are growing by leaps and bounds. The builder lobby is heavily advertising their wares in their weekend supplement. Hiring fesh graduates to cook up fancy stories is a good way to monetize their paper while charging exhorbiant rates.

The coming of the Information Technology culture has been high-octane fuel to the speed of property development in Pune. More and more land was required to accommodate the various national and international IT companies that finally led to the formation of such landmarks as the Hinjewadi IT and Software Park. Once this process was begun, there was no stopping it. Tempted by the sudden prosperity and opening up of the job market, job seekers from other cities made Pune their final destination of ambition's pilgrimage - the new Entrepreneurial Promised Land. The development is spreading to many different areas in Pune, giving rise to potential real estate hotspots.
Since the demand for commercial and residential space was growing hand in hand, many outlying villages along the major expressways and highways were officially added to Pune's geographical territory. Areas like Baner, Pimple Saudagar, Wakad, Kharadi, Warje and others emerged as undisguised gold mines on the realty scene. The above-mentioned areas, along with more centralised locations such as Solapur-Nagar Road Bypass, have witnessed an upsurge in property development.
Mohammed Aslam from Jones Lang Lasalle Meghraj says, "On the property market, the phenomenon of expansion and development is known to be a self-perpetuating one - prosperity is never confined to a single locality. It positively affects its immediate surroundings. A special case in point would be Koregaon Park. Th e presence of the Osho Commune has given rise to a level of exclusivity that is still hard to match in the rest of the city. The number of Category A residential developments is now spilling over into its surrounding areas, as well. This has been eminently true in Pune's overall property boom, as well. Using the central part of residential and commercial Pune as a reference point, development is distinctly visible on all four sides of the compass."
He adds, "Beginning at Aundh, we have the more suburban areas of Baner, Thergaon, Pimple Nilakh/Pimple Saudagar, Wakad and Aundh displaying accelerated rates of development to one side. From the perspective of Kalyani Nagar and Koregaon Park, the areas of Vadgaon Sheri, Mundhwa and Kharadi are receiving increasing favor from property buyers. Laterally, Wanowrie and Kondhwa have spawned minor property booms at Hadapsar and Undri. Diametrically opposite, the development of Bibwewadi and Dhankawadi has led to greater attention being focused on Katraj and properties along Lullanagar Road and Kondhwa-Katraj Road."
Yogendra Chordiya of Prithvi Estates, a local property dealer says, "Areas like Kondhwa, Pashan, Hadapsar, Talegaon, Chakan Mundhwa, Wagholi have developed a lot. Talegaon is good for second homes or weekend homes. But other areas have been for permanent buyers. Malls have come up in Kondhwa. The residential rates have increased from 2000 to 4500 sqft in Kondhwa. Pashan is developing, as it is close to Hinjewadi IT Park. In Hadapsar, Amanora Township is coming. Chakan is also getting revamped due to the upcoming airport. Areas like Mundhwa, which is near Koregaon IT Park has also developed."
Milind Sant, an estate agent from Pune says, "Pashan is a good area, which is near Hinjewadi IT park. Talegaon is viewed as a second home or weekend home destination. But I think in the next five years, it can be a hot destination for permanent buyers, as the industry is developing there. As for Chakan, it is a potential option for investing, as the new airport is coming in Chakan.
“I think the Pune market is now stable, but it will increase further. So investing in Pune today will give good returns in the years to come," he adds.


ashvin said...

This looks like a sponsored article to me. The current property rates in Pune are so high that no one even in the next ten years would be able to buy a house, the areas mentioned in this article are far , very far away from civilization. There is no drinking water in these areas. No one in pune will pay Rs 4K per sq ft for Kondhwa, there is no water there and most of the area is Muslim dominated. Maybe outsiders like ignorant Mumbai investors might purchase houses in these areas. Locals would not

Lilli said...

Property brokers and agents say that stabilisation in Pune's real estate market reflects the trend prevalent in the country's property segment. The country's economy is facing a slow-down and it is the same case with the construction sector as well.

Ramesh Naik from Naik Navare Association, a property brokerage firm, explains that oversupply of property, especially in the residential segment is adding to this trend. "Most of the construction projects are in their initial phases. Hence, the property developers are in a hurry to sell their projects. The projects are priced comfortably. And the developers are luring home seekers with gifts and rebates. Some property developers are offering reduced Equated Monthly Installments (EMIs) and some are wavering parking fees for housing units," says Naik. He adds that many transactions are happening the actually figures are difficult to compute.

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