The Investment Potential Of Pune’s Growth Areas

The 2012 Government Ready Reckoner for Pune shows a property rates increase of between 20-25% in some of the rural areas, primarily those that are being developed rapidly. Is this surprising? After all, would one not expect rates to go up more in urban rather than rural areas? Not necessarily.

homes

In the first place, it is the developing areas of Pune that are the investment hotspots, not the established ones. This is because these areas, though priced lower than the central city locations, are seeing addition of infrastructure and rapidly improving connectivity.

This means that property investors focusing on Pune can pick up properties at lower rates and watch their value grow as these areas become better connected to the city’s economic hubs. This phenomenon is already being witnessed in areas like Wakad, Punewale, Moshi and Ravet, all of which benefit from proximity to the Hinjewadi Infotech Park, the Expressway and the PCMC manufacturing belt. The demand for housing in these areas is high and increasing with every passing month.

It must be remembered that the price of housing is determined by the demand for it. In any given area, housing prices grow in tandem with the growth in local population. The basic logic is simple – as more people are added to a local economy, the more housing is required – and the greater the demand for housing, the higher will be the property prices. Pune property investors are obviously interested in cashing in on this trend.

The fact that Ready Reckoner rates are rising should also point the way for aspiring home owners. This is the right time to buy a home in one of the rapidly growing development areas of Pune. Investment in the right kind of home in the right kind of location can provide them a comfortable lifestyle now and financial security for themselves and their families in the long run.

Here are some quick guidelines for the selection process:

  • Ensure that the project is being constructed by a reputed builder with a good track record for timely completion
  • Ensure that the location has appreciation potential – ask a local broker by how much prices there have grown over the last three years and how much they are expected to grow in the next three years
  • Do not go by price alone but look at what is scheduled to happen in the location in the near and distant future
  • Invest in a township property. Township properties generally show better resale value than standalone projects because they have better infrastructure, security, construction quality, facilities and ambience

Posted by: K. D. Nagarkar

Tips On Buying A Home In Pune

Every Indian dreams of having their very own home, and most people work all their lives to save up enough money to purchase it. In fact, this is the primary driver of the Pune property market, since this city holds to the traditional concept of homeownership as a gauges of security and success. And, of course, a new home is the best gift you can give yourself and your family.

Because of the recent economic crisis, a lot of Pune property buyers have begun thinking twice about purchasing a new home. The major reasons are increased interest rates and the rather unfriendly Pune property rates. While a number of banks are offering to help out families in Pune who want to buy their own home, there are still clouds of doubt that hover above the decision makers.

It is true that buying a home is a huge investment, and that you need to maintain it for a lifetime. For a middle class homebuyer in Pune, buying a residence is literally putting all the chips on the table. Here are some tips that are worth considering before you proceed with buying a property in Pune:

  • Location

Location is perhaps the most important factor to consider, because it will say a lot about your purchase. Do not forget that its location dictates the price of your new home in Pune. For example, a 3 BHK flat in the middle of nowhere will cost you a lot less than a 1 BHK in the middle of the city’s commercial district. Some areas are called prime because of their central location. They are close to the places that we need access to, such as schools, healthcare facilities and shopping centres. These places cost a lot more because they offer all of these.

However, the new concept of township properties has created an entirely new paradigm. The new townships in Pune allows property buyers to avail of all these facilities even if the location is not in the centre of the main city. Some of the best townships in Pune are coming up in the Pimpri Chinchwad area – for instance, Woodsville in Moshi and Celestial City in Ravet, both being developed by Pharande Spaces. These are integrated townships that offer every convenience of modern living in Pune’s flourishing sister city.

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  • Price

The cost of your flat in Pune is obviously one of the most important considerations. As already stated, certain properties in Pune cost more simply because they are centrally located within the city. It is significant to note that despite the higher pricing, the homebuyer has to put up with traffic congestion, air pollution, lack of greenery and inadequate parking facilities.

Those who are looking for a reasonably priced flat in Pune will only find it in the further locations. Many of these new areas do still have some greenery and less traffic congestion and pollution. However, in time these areas will also succumb to the hammer of indiscriminate development which has been the hallmark of the Pune real estate market.

Again, Pimpri-Chinchwad township properties offer the perfect alternative. The real estate development in the PCMC area is strictly controlled. This means that infrastructure keeps pace with property development at all times. In other words, these Pune township properties will never be strangled by over-development and traffic snarls. They are the perfect alternative for Pune property buyers who are looking for a clean, green environment to live in – not only for the current generation, but for all generations to come.

  • Security

Security is a major concern in a fast-developing city like Pune. Your choice of location for your new home also reflects on the safety of your family as well as your property. Security is definitely a very important consideration when you purchase a new home. It makes more sense to buy a property in a township project which offers round-the-clock security than in a urban city centre with a high crime rate.

  • Appreciation

While central location is a big driver for property prices, central locations are also the most volatile in terms of price fluctuations. This is because the property market in city centres is more often than not driven by investors rather than genuine end users. On the other hand, there are no other price drivers in a congested, overdeveloped city. Very little can be done to enhance the infrastructure and therefore the lifestyle quotient of property owners.

Though prices stagnate in the city centre for these reasons, property valuations for township properties in developing areas such as Pimpri Chinchwad increase because of the better infrastructure, more wholesome environment and the steady – yet controlled – addition of value-adding projects such as office complexes, malls, schools and hospitals.

While buying a flat in Pune, it makes a whole lot of sense to consider the purchase from all angles. In short, keep in mind what kind of standard of living you wish to enjoy in your lifetime and also pass on to your children.

Posted by: K. D. Nagarkar

Realty Bubble To Escape Action

An extraordinary sharp rise in property prices and robust growth in banks’ housing loans portfolio is drawing attention of policymakers, economists and bankers said this week.

It is not clear whether the Reserve Bank of India, in its mid-quarter policy review on Thursday, will take more than cognisance of these developments that have impact on the effectiveness of its battle against inflation. Some economists believe RBI won’t impose curbs on bank credit to realty sector although housing inflation is fed by easy availability of banks loans.

Not that it has ignored this development.

Late August, the central bank’s annual report noted, “Although housing prices witnessed correction during the global financial crisis, there was a sharp rebound in the subsequent period.”

“Greater pace of rise in asset prices continued to remain a concern from the standpoint of macroeconomic management,” the report said.

Realty bubble

Rising property prices in past one year have raised fears an asset bubble may be forming in real estate sector.

Reliable data on housing prices is limited. According to Makaan.com, a website on real estate, property prices in Mumbai and Pune rose 10-14% in the year to July 31. In Delhi’s National Capital Region, prices were up 30%. An official indicator of housing prices is the consumer price index for urban non-manual employees (CPI-UNME). This puts housing inflation at 33% from a year ago in June.

The escalation in property prices “is somewhat out of sync from fundamental viewpoint”, said Abheek Barua, chief economist at HDFC Bank. In the past, RBI has increased risk-weights on banks’ loans to real estate to limit lending to the sector. RBI hiked risk-weight on advances to commercial real estate sector to 1% from 0.4% in October 9. Rating agency Crisil’s economist dismissed ideas the banking regulator would impose stricter sanctions on real estate loans in Thursday’s policy.

“Real estate prices have been on RBI’s radar for some time,” acknowledged Dharmakirti Joshi, chief economist of Crisil. But “I don’t think there will be any major changes (in real estate lending norms) on September 16,” he said, noting, “There are still downside risks to the economy.” For some, spike in home prices mirrors growth in economy, and therefore there is no need for RBI to up the ante on housing.

“I don’t think there is any bubble in property prices at this point of time,” said Madan Sabnavis, the chief economist of Credit Analysis & Research, also a credit rating agency.

“Overall, if one takes a sanguine view of the Indian economy, things are looking positive. So it is natural realty prices will also go up,” he said. “I don’t think RBI needs to act or will act immediately. But if this upswing (in property prices) persists, RBI may act accordingly,” he said.

June Pune Real Estate Prices Went Up By 12.5 %

As per a recent survey of the Property Index (MPI) by a real estate business website, real estate prices in Pune have grown by 12.5 per cent in June compared with the same month last year.

The index for the month of June stood at 1094 vis- a- vis 972 a year ago. The increase in the Pune index can be attributed to the hardening of property prices in the underlining markets of Aundh, Pimple Saudagar, Chinchwad, Karegaon Park, Wakad, Wanowarie, Hadapsar, Viman Nagar and Talegaon, found a study by Makaan.com.

Aditya Verma, COO, Makaan.com, the organisation which conducted the survey, said “Pune property prices have moved up at a rapid pace keeping many home buyers at bay. The un-expected fast run-up has lead to a mood of caution in the near term. The home buyers seem to be in a wait and watch approach. The price movement over the next few months will determine the next definitive trend”

“The trend for June’10 deserves a special mention as it was around this time last year that the property prices started to look up after nine months period of continues decline caused by global slowdown,” said the report.

Other popular markets like Baner, Kalyani Nagar, Kharadi, Kothrud, Magarpatta and Vishrantwadi saw an appreciation lower than the city average. If one looks at the short term (quarterly) trend and compare the price index for June’10 with that of March’10, one would observe softening in property prices.

The Pune index during this period has moved from 1197 in March’10 to 1094 in June’10 signifying a fall of 8.6 per cent. This indicates a short term fatigue in the property prices after an upturn seen earlier in the year.

Read the rest of this article here.

Pimpri-Chinchwad: Pune’s Last Hope For Planned Residential Development

woodsville

Pimpri-Chinchwad, the twin city located south-east of Mumbai, is the fifth most populated city of Maharashtra and also one of the most prominent industrial destinations outside Mumbai. In fact, Pimpri-Chinchwad is the decisive factor in making Pune the second largest industrial city in Maharashtra after Mumbai.

Industrial Utopia

Over 4000 industrial units in the large, medium and small sectors dot its landscape, among these some of the most reputed industrial companies in the country. If one includes Bhosari and Dapodi in its purview, Pimpri-Chinchwad’s repertoire reads like a regular industrial Who’s Who. Among the major names are:

  • Bajaj Auto Ltd.
  • Force Motors
  • Sandvik Asia
  • Alfa Laval
  • Forbes Marshall
  • Atlas Copco
  • Kirloskar Filters
  • Kalyani Sharp
  • Mahindra and Mahindra
  • Hindustan Antibiotics
  • Kirloskar Pneumatics
  • Tata Motors
  • Indian Card Clothing
  • Finolex
  • SKF Bearings
  • Greaves Cotton

… and many more

Pimpri-Chinchwad’s status as a power-driven property destination also derives from its matchless connectivity. Its strong road network encompasses major transportation corridors – the Mumbai–Pune Road, the NH-4 Bypass, NH-50 (Pune-Nashik Highway) and the roads connecting Aundh to Kalewadi and the Mumbai–Pune Road to Bhosari.

Development Potential

Until fairly recently, Pimpri-Chinchwad was perceived primarily as an industrial hub and not a residential destination. However, with industrial development on ascend the population has grown exponentially there. Today, Pimpri-Chinchwad has emerged as a as a metropolis in its own right, with a thriving residential market on par with the best-planned cities and towns in India.

The residential market has multiple market drivers. The proximity to Hinjewadi IT Park apart, there is no doubt that this area’s future development will now be driven by the industrial clusters which are heavily concentrated in the PCMC area. Many landmark developments such as the International Convention Centre are coming up here, which clearly indicates that the PCMC area has a high potential for development. These projects are all part of the PCMC master plan laid down three decades ago.

Residential real estate development in Pimpri-Chinchwad has picked up rapidly in the last three years, and this area’s tag of an ‘Industrial City’ has vanished forever. The first wave of housing projects was driven primarily by the redevelopment of industrial campuses and plots into residential projects that catered to the workforce at the MIDC/industrial areas in Pimpri-Chinchwad and Talegaon.

Today, however, the fact that the PCMC area is, in fact, a meticulously planned area is making a truly decisive play on its real estate fortunes. Government-planned cities have various advantages over cities that have expanded via organic growth.

Planned development such as witnessed in Chandigarh and Gurgaon are the wave of the future in Indian real estate. PCNTDA — the Pimpri-Chinchwad New Township Development Authority — is a model closely based on that followed by Chandigarh, Gurgaon and Navi Mumbai.

Pune has witnessed organic growth, and the deficits in proper town planning have resulted in much of its infrastructure problems and shortfall in residential developments. In contrast, the properly planned Pimpri Chinchwad area – especially industry-intense areas like Chakan – should be able to avoid the mistakes done in central Pune.

PCMC has the advantage of proper town planning and the resultant infrastructure. However, there are areas of concern about how adequately development is being addressed in this vital growth area.

Residential Space Shortfall

The PCMC MIDC area encompasses approximately 3000 acres. The Chakan and Talegaon belt comprises about 11000 acres, which means that Chakan will need about 50,000 acres of planned residential development.

This kind of development will happen in a periphery of around 50 sq km. However, the magnitude of actual development today is lamentable. This is a major lacuna. 50% of Chakan’s industrial era is already developed and occupied. Major industrial giants like Volkswagen, Bajaj and Mercedes Benz have already started production.

The key area of Pradhikaran is the logical location for absorbing the residential demand of this industrial belt; however planning for the residential requirements of employees in these industries in Pradhikaran is completely inadequate. This needs to be done soon. To boost the residential sector in Pradhikaran, proper road connectivity between Pradhikaran, PCMC and Chakan must be established.

Pradhikaran has the potential of becoming the latest real estate growth area – not only for PCMC, but in terms of Pune as well. Pune is, in geographic terms, a small city typified by haphazard development of its real estate market. The PCMC area is a diametric opposite – it is 100% planned, with the groundwork for the planning in place since 1965.

Pune’s growth boosters are education and IT / ITES. In PCMC, and particularly in the Pradhikaran area, there is a plethora of factors to amplify economic and real estate market growth, including IT, automobile and various other industries.

The result is that a huge magnitude of residential and utility space needs to be developed in Pradhikaran alone. However, this has not been addressed by developers.

Three years back, the average property rates in the PCMC area were below Rs. 1000/sq.ft. Now, the average rate throughout the region is between 2500-3000/sq.ft. – a growth rate that Pune has been able to replicate only in certain IT-centric or high-profile residential areas.

At the current time, it is still possible to locate residential projects to commercial projects in Pradhikaran. This allows for maximum appreciation potential, since the demand for either of these two segments feeds the other. In another five years, the area will have reached such a high level of development that such juxtaposition will no longer be feasible.

Developers still have an opportunity to take advantage of this fact and develop residential and commercial projects close to each other. While this makes excellent business sense, it will also ensure that Pradhikaran will attain a balanced real estate profile that dovetails perfectly with the PCMC master plan.

Currently, the residential property rates in Pradhikaran range between 2500-3000/sq.ft. Once the International Convention Centre and the new International airport are launched, these rates have the potential of doubling. Until then, the minimum appreciation potential for Pradhikaran will remain at a steady 15-20% year-on-year.

Anil Pharande is President of CREDAI PCMC and Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

This article may be reprinted with proper attribution to the author and a link back to PunePropertyBlog.com

Ravet: A Promising Residential Destination For Pune Property Buyers

celestial-city-ravet

In a rapidly developing city like Pune, it takes a lot to make a new destination stand out from the rest – and to interest those who seek to buy property in Pune.

This city has been spreading steadily outward, embracing most of the rural areas around it and bestowing the benefits of urbanization on them. Areas like Aundh, Baner, Wakad, Pimple Nilakh and Pimple Saudagar have all had their heyday.

However, it is now the turn of the hitherto obscure area of Ravet, located on the North-West side of PCMC and Pune, to receive a wave of the real estate magic wand. By a combination of various advantageous factors, Ravet is now certainly among the most promising of upcoming residential locations on the Pune property market.

Accessibility

Developed by the Pradhikaran-Pimpri Chinchwad New Township Development Authority (PCNTDA) Ravet is extremely strategically placed on latter-day Pune’s map. By virtue of the fact that it is the first town one encounters after leaving the Mumbai-Pune Expressway, it is now known as the Gateway to Pune.

Ravet is, in fact, a confluence point of the old NH4, the Katraj-Dehu Road bypass and the Mumbai-Pune Expressway. Moreover, it is located equidistantly from two major real estate market drivers – the Hinjewadi IT hub and Pimpri-Chinchwad industrial belt.

At this strategic point, JNNURM has now launched a 45-metre, grade-separated, non-signaled four-lane BRT (Bus Rapid Transport) road that provides access to the key area of Aundh in under ten minutes. 40% of the work on this vital conduit is already completed. Pimpri, Chinchwad, Chakan and Talegaon are now quite easily accessible from Ravet.

Developer Activity In Ravet

Pharande Spaces and the Rama Group have joined hands at Ravet in launching an integrated residential township called Celestial City. Located in the focal centre of Ravet, this project is spread over 25 acres and will be developed over three phases.

Since  the current property rates in Pune tend to be unrealistically high, the highest demand is currently for affordable housing. Keeping this in mind, the first phase targets the middle-income group with 2 and 3BHK flats ranging in size from 800 to 1200 square feet. These flats are affordably priced between Rs. 22 to 24 lakh at the initial offering phase.

Taking a cue from this pioneering project, other developers have also acquired land in Ravet, although their projects are yet to be announced. Meanwhile, this location continues to hold the highest promise for the Pune property market.

Vital Market Drivers

Apart from its accessibility, which by itself spells gold in real estate terms, there are other important establishments close to Ravet that add to its value as a residential location.

These include the Aditya Birla Hospital, the Bajaj Auto manufacturing plant, SKF, Telco and major educational establishments such as the Indira Institute of Business Management, D.Y. Patil College as well as the Mercedes Benz School.

Its proximity to the Hinjewadi IT hub is of strategic importance, since this fact makes it a new and affordable residential location for software employees there. It is also a location of high value to employees from the Talegaon MIDC and Chakan MIDC. It is, in fact, a binding location for these very important hubs.

Compared to the now staggering Pune property prices, rates are welcomingly low in Ravet, and the appreciation potential is undoubtedly high. It is therefore not surprising that some major names from PCMC’s developer community have taken an active interest in this lodestone location.

We expect it to reach a high level of investment and end-user potential in less than four years, after which rates should show significant and steady upward movement.

Avinash Gokhale is Director – Marketing & Corporate Planning, Pharande Spaces – a leading construction and development firm operating in the PCMC area of Pune, India.

This article may be reprinted with proper attribution to the author and PunePropertyBlog.com

The Real Estate Dynamics Of Satellite Towns

The immediate impacts of satellite town formation – and the primary advantages – would be an at least partial decongestion of the central city and a rise in property valuations in the satellite town.

The appreciation rate would depend on what kind of infrastructure has been/is being put in place in the satellite town, and what other market drivers it features.

Price Dynamics

Since appreciation is of paramount interest from an investment point of view, this aspect deserves amplification. Property prices are a function of demand and supply. Demand is created by a suitable combination of market drivers such as employment potential, infrastructure and overall quality of living.

If a satellite town offers these in sufficient magnitude, and if there is sufficient connectivity to the main city by means of road and rail, this new area can often put a slight downward pressure on property prices in the more centralized regions while showing a steady upward trend on its own property price graph.

This, however, happens only under optimum conditions, which must be created by meticulous town planning and proactive local Government support.

The Downside

Of course, living in a satellite town is not everyone’s cup of tea. There would be a perceived disadvantage for those use their home in the satellite town to travel to their workplace in the central city, especially if the necessary degree of road/train linkage has not been created.

Also, buying a home in a satellite town can lead to a sense of isolation and general dissatisfaction if the location does not feature the kind of social life and entertainment that would be seen as necessary lifestyle quotients.

Some central city dwellers would choose to move to such satellite towns in response to the available relief from city-related stress and cheaper property rates. However, the majority of metropolitan inhabitants would choose not to relinquish their foothold in the main city.

Many satellite towns coming up today are of greater interest to migrant populations rather than core city inhabitants, and local developers tend to zero in on this population while planning their projects.

Developers’ Delight

A classic example of best-scenario satellite town planning would be the Pimpri-Chinchwad Municipal Corporation (PCMC) of Pune, which is an industrial hub in its own right.

Within the PCMC area, Pradhikaran has emerged as the location of choice for mid-to-high level management staff working in the various surrounding industries, and various local development have recognized and focused on this potential.

Areas such as Navi Mumbai and Pune’s PCMC are planned developments that have their own social infrastructure as well as distinct resident profiles social character.

If satellite townships have been meticulously masterminded by the relevant town planning authorities, they will incorporate their own economic drivers such as employment opportunities, social infrastructure and lifestyle quotients.

Simply put, such a combination of factors opens up a new growth area for the real estate market. Under suitable circumstances, office, retail and residential property will work in tandem to create a symbiotic growth pattern.

Moreover, once such a satellite town is established, it tends to attract various industries specific to the available workforce, further boosting this pattern. The overall effect is one of economic diversification of a possibly congested metro into new directions. This naturally spells nothing but good news for the region’s real estate market.

Author: Subhankar Mitra is AVP – Strategic Consulting, Jones Lang LaSalle Meghraj, the largest real estate consultancy in India.

Prominent Satellite Towns + Benchmark Property Rates

Pune:
Rupees
PCMC under aegis of PCNTDA(Pimpri-Chinchwad New Township Development Authority)
2000-2800/sq.ft
Mumbai:
Navi Mumbai
3000-3500/sq.ft
Kalyan/Dombivili
2200-2700/sq.ft
Vasai/Virar
2000-2200/sq.ft
Delhi:
Ghaziabad
3000-4000/sq.ft
Faridabad
3000-5000/sq.ft
Guragon
3500-5500/sq.ft
Greater Noida
2500-3500/sq.ft
Bangalore:
Yelahanka
2800-3200/sq.ft.
Devanhalli (Villas)
3 to 9 Cr.
Chennai:
Sriperumbadur (proposed as satellite town)
2000-2200/sq.ft
Siruseri (proposed as satellite town)
2500-2800/sq.ft
Kolkata:
Rajarhat
2000-2500/sq.ft
Kalyani/Batanagar
1800-2200/sq.ft

(Rates are indicative only and may vary according to projects and location dynamics)

Pune Real Estate: Manufacturing Companies Eye Realty Market

Small manufacturing companies are increasingly eyeing the growing real estate market as it turns out to be a goldmine for property developers in the country. At least half-a-dozen companies have either announced real estate projects with their partners or monetised their prime land assets in the last three to four months.

The reason: Home prices in cities like Mumbai and Pune have shot up surpassing the record levels of 2007-08, after seeing a drop of 30-40 per cent last year as home buyers postponed purchases.

Textile company Arvind today said it will develop 10,00,000 square feet of residential complex in Ahmedabad, with its joint venture partner B Safal Group. The land is owned by Ashoka Cotsyn, a unit of Arvind. Arvind already announced its plans to unlock around 600 acres of land in and around Ahmedabad and floated a separate subsidiary Arvind Infrastructure to pursue its real estate dreams.

Mumbai-based cable manufacturer Cable Corporation of India (CCI) is also looking at developing real estate projects across western India. Its maiden project in Borivali area of Mumbai is expected to cost around Rs 1,000 crore. Incidentally, the company’s Borivali land used to house its main plant will be shifted to Nasik in Maharashtra.

Hiten Khatau, chairman and managing director of CCI said the company has received booking for 70 apartments in its Mumbai project where it will develop 700 flats. Recently, the Rs 3,500-crore steel wire maker Usha Martin launched an affordable housing project in Boisar, on the outskirts of Mumbai, and plans to launch similar projects in Pune and Bangalore by the year-end.

Read the rest of this post here.

4.5 Acres Of Land In Mumbai’s Mulund Surburb Sold For Rs 200 Cr

MUMBAI: Kalpataru Builders has purchased 4.5 acres of land in a busy Mulund area for close to Rs 200 crore in one of the biggest real estate deals in the suburbs here, a source said. The total land area is a little over 1.5 lakh square feet with a floor space index (FSI) of 2, the source said.

The land owner, Schrader Duncan Ltd, had shifted its automotive plant from Mulund to Ranjangaon, in Pune, in 2009, where commercial production has already started.

Read the rest of the article here.

Pune Real Estate: Scaling New Heights

While the global economic slowdown of 2008-09 had some impact on the Indian economy, Pune’s realty market remained virtually unscathed.

It is an acknowledged fact that in the last one decade Pune has seen an enviable escalation in realty. The rise in construction activity has been widely attributed to Pune’s new face as the emerging IT hub of India following at the heels of ‘over crowded Bangalore’ and beating Hyderabad that has recently been overwhelmed with the Telengana issue.

“Pune is the safest, most stable and most rapidly progressing realty market,” says Mr Shashank Paranjape, Managing Director of Paranjape Schemes, a city-based developer.

“From 2001 onwards, the city witnessed a phenomenal growth. But it was only in 2003-04 that the Pune realty market actually took off,” explains Mr Satish Magar, promoter of mega township Magarpatta and Chairman, Pune chapter of Confederation of Real Estate Developers’ Associations of India.

“While IT is still the major driving force behind the real estate market, the demand and growth has also been fuelled by other industries. Pune also has more favourable conditions for living as Mumbai and Navi Mumbai are now largely unaffordable and saturated,” he says.

According to Mr Magar, Pune has four growth engines — IT, auto, educational and migration. “Migration to Pune from rural Maharashtra is on the rise due to the excellent demand for skilled and unskilled labour, leading to the growth of the city,” he emphasises.

Read the rest of this article here.