Investment Destination – Pune
India’s Famous City ‘Pune’ needs no introduction. Citizens (Punekar’s) always says in proud, the Marathi idiom “Pune Tithe kaay une” which means “there is no deficiency in Pune and city is perfectly perfect, just like Punekars” (Not Kidding, Punekars Means it).
Pune also has known ‘Poona,’ is the second largest city in the Indian state of Maharashtra after Mumbai. The city is also considered as the Cultural Capital of Maharashtra. Due to Presence of various Educational hubs and Institutes, the city is known as ‘Oxford of East’. Savitribai Phule Pune University is the Premier University of India. Automobile Manufacturing & Information Technology sectors are the major Industrial hubs in the city. Pune is also looked upon as the ‘Next Silicon Valley of India’ after India’s Bengaluru City.
The ‘Mercer 2017 Quality of Living Rankings’ evaluated living conditions in more than 440 cities around the world and ranked Pune at 145, second in India after Hyderabad which is ranked at 144, they also highlighted Pune among evolving Business Centers and Nine Emerging cities around the world with the citation “Hosts IT and automotive companies”.
City participated in Indian Government ‘Smart City’ initiative & bagged the place in it, to be developed as the Smart City of India.
Video Courtesy: Youtube video published by ‘Smart Pune’
Approximate Distances from Pune to other Important Cities:
• Pune to Mumbai – 150 Km (Mumbai is Financial Capital of India & State Capital of Maharashtra, Mumbai is also the Business Centre & Tourist Destination)
• Pune to Lonavala – 67 Km (Lonavala is famous Tourist Destination & Famous for Traditional Indian Sweet “Chikki”)
• Pune to Nashik – 215 Km (Nashik is known as Pilgrimage Place of India, also famous for Grape & Onion (Lasalgaon) Cultivation. Nashik is also known as ‘Wine Capital’ of India due to presence of Winery Industries)
• Pune to Mahabaleshwar – 120 Km (Mahableshwar is a Hill station City & Known for the cultivation of Strawberries.)
• Pune to Aurangabad – 235 Km (Aurangabad is a famous Tourist Destination, Ajanta & Ellora Caves are World Heritage sites. Automobile manufacturing Industry is also present in the City.)
• Pune to Nagpur – 715 Km ( Nagpur is the second capital of Maharashtra & also known as Orange City, due to the cultivation of Oranges, Famous brand of Namkeen “Haldiram” comes from this place.)
• Pune to Goa – 445 Km (Goa is the Tourist Capital of India & very famous tourist destination among Foreigners. Famous for Cashew & Feni Production, Feni is a Spirit distilled from the cashew fruit & only produced in Goa, India)
The climate of Pune:
Pune experiences three seasons viz. Summer, Rainy & Winter.
Summer Season is from Mid-March to Mid-June. Warmest Month in city is May (Temperature generally ranges from 35degree C to 40degree C)
Rainy Seasons is from Mid-June to September. The city receives Moderate rainfall.
The temperature in October Month raises from35degree C to 38degree C. October month in the city is also known as ‘October Heat’ Month.
Winter Season is from October-End to February. Winters are not too severe but pleasant & temperature ranges from 17degree C to 8degree C.
The city is managed by Pune Municipal Corporation also known as PMC.
Apart from PMC, there are four other Municipal or Cantonment Boards responsible for governing respective areas of Metropolitan Region.
• Pimpri Chinchwad Municipal Corporation (PCMC) – Responsible for Pimpri, Chinchwad & surrounding areas.
• Khadki Cantonment Board (KCB) – Responsible for Khadki Cantonment area.
• Pune Cantonment Board (PCB) – Responsible for Pune Cantonment area.
• Dehu Road Cantonment Board (DCB) – Responsible for Dehu Road Cantonment area.
• Airport – Pune International Airport is an International Airport & is managed by Airports Authority of India. It is situated in Lohegaon Area. The airport is very near to IT hubs of Kharadi, Magarpatta City, Yerawada and Viman Nagar. New International Airport is also planned near Saswad – Phursungi which will connect to Industrial areas of Shirwal (Satara District, Neighboring District of Pune), Hinjewadi IT Park, Baner & Pashan Area through Pune-Bengaluru Highway.
• Railways – Railway Station is managed by Pune Railway Division of Indian Central Railways. Railway station connects the city with other Indian Cities such as New Delhi, Mumbai, Chennai, Kolkata etc. Local Trains also operates from the city, which connects the city to the Industrial town of Pimpri-Chinchwad, Tourist Destination City Lonavala.
• Roadways – The city is well connected to other Indian & State cities through National & State Highways. India’s first Express Mega-Highway Connects the city with Mumbai. A distance of 150 Km is covered in 2 Hours. Intercity Transport can be done by Local Municipal-operated Buses(PMPML), Auto Rickshaws( Three Wheeler), Private Taxis and Cabs (Operated by Ola/Uber etc.), Metro Zip hoping Buses (Operated by Private Transport Companies) for working people and of course Personal vehicles(Two wheelers & Four wheelers).
• Metro – Work for Mass Rapid Transit System – Rail based, known as ‘Pune Metro’ is been started in Phase wise manner.
Why Select Pune as a Real Estate Investment Destination.
Pune being developing city of India, a lot of infrastructural development Projects are currently underway. Residential & Commercial Properties at various locations are still available at affordable rates as compared to neighboring Mumbai city. Real Estate market of the city is well priced with a wide assortment of buyers various needs. When we look at trends in Real Estate Prices, it shows an upward growth at a constant speed which makes Pune a safe and reliable location for Investment. The investor can also earn a good rental income from his investment property may it be Residential or Commercial.
- Let us have a look at Market Trends for Few locations of the city.
Property Price Trends
|Location||Asking Rate per Sqft. in INR|
Year 2015 & Year 2018
|Rental Rate for 1 BHK|
|Rental Rate for 2 BHK Year 2018||Rental Rate for 3 BHK Year 2018|
|Kalyani Nagar||Y 2015 - Rs. 6000|
Y 2018 - Rs. 11000 to Rs. 12000
|Rs. 13000 - Rs.16000||Rs. 21000 - Rs.24000||Rs. 31000 - Rs.42000|
|Kharadi||Y 2015 - Rs. 6000|
Y 2018 - Rs. 8000 - Rs.8500
|Rs. 11000 - Rs.12000||Rs. 16000 - Rs.18000||Rs. 19000 - Rs.23000|
|Koregaon Park||Y 2015 - Rs. 10000|
Y 2018 - Rs. 12500 - Rs.13000
|Rs. 13000 - Rs.16000||Rs. 20000 - Rs.24000||Rs. 30000 - Rs.42000|
|Magarpatta City & Surrounding||Y 2015 - Rs. 7000|
Y 2018 - Rs. 8000 - Rs.9000
|Rs. 12000 - Rs.14000||Rs. 17000 - Rs.20000||Rs. 25000 - Rs.28000|
|NIBM & Surrounding||Y 2015 - Rs. 5000|
Y 2018 - Rs. 6000 - Rs.7000
|Rs. 7000 - Rs.9000||Rs. 10000 - Rs.13000||Rs. 15000 - Rs.20000|
|Lohegaon & Airport||Y 2015 - Rs. 4000|
Y 2018 - Rs. 6000 - Rs.8000
|Rs. 8000 - Rs.10000||Rs. 11000 - Rs.11500||Rs. 13000 - Rs.16000|
|Kothrud & Dahanukar||Y 2015 - Rs. 8000|
Y 2018 - Rs. 10000 - Rs.11000
|Rs. 9000 - Rs.11000||Rs. 15000 - Rs.18000||Rs. 22000 - Rs.28000|
|Hinjewadi||Y 2015 - Rs. 6000|
Y 2018 - Rs. 7000 - Rs.7500
|Rs. 10000 - Rs.12000||Rs. 15000 - Rs.16000||Rs. 17000 - Rs.22000|
|Pimpri-Chinchwad||Y 2015 - Rs. 6000|
Y 2018 - Rs. 6500 - Rs.7500
|Rs. 8000 - Rs.9000||Rs. 10000 - Rs.12000||Rs. 13000 - Rs.16000|
|Baner||Y 2015 - Rs. 7000|
Y 2018 - Rs. 7500 - Rs.8500
|Rs. 10000 - Rs.12000||Rs. 15000 - Rs.17000||Rs. 20000 - Rs.25000|
|Aundh||Y 2015 - Rs. 9000|
Y 2018 - Rs. 10000 - Rs.10500
|Rs. 10000 - Rs.12000||Rs. 16000 - Rs.17000||Rs. 20000 - Rs.25000|
Data collection Date: January 2018.]
- Let us find Potential Future Value (PFV) of your Real Estate Investment:
To find the PFV, we need to first derive the Future Growth Factor which depends upon average % of the Yearly growth of the properties in the planned Location.
Considering the Safe Average Yearly Growth of Pune location as 3.4%, the calculation for Potential Future Value after 10 years for Rs. 1 Lakh invested on the present date in the property will be as below.
Consider Present Property Cost – 1, 00,000/-
Average yearly Increase in Property Value – 3.4%
Future Growth Factor (FGF) = (1+Annual value) ^number of years.
FGF= (1+0.034) ^10 = 1.4
Potential Future Value = FGF x (Present Cost of Property) = 1.4 x 100000 = Rs.140000/-
Thus 1.4 is the Multiplying Factor for Future Value of Your Property after 10 Yrs.
Thus you can multiply 1.4 with your invested value to find potential FV of your property after 10 Yrs (Assumption:3.4% avg. Yearly increase).(10 Yrs. is considered for mid-term investment Goal)
Again this will depend upon Market Conditions & Risks & shall be used as a thumb rule calculator.
- City Zones:
The city is divided into 5 Zones viz. North, South, East, West & City Central Zones. Let us see zone wise suburban locations.
Pune Property Zones
|North Zone||South Zone||East Zone||West Zone||Central, City Inner Zone|
|Pimpri-Chinchwad||Katraj||Kharadi||Kothrud||All Peth Areas (17 Peths)|
|Pashan||Bibvewadi||Magarpatta||Dhole Patil Road|
|Dhanori||Lullanagar||Wanowri||Pune Camp Area|
Courtesy: Google Map
As we have already discussed, Pune is developing city & development works are in progress in every direction of the city, investors can grab this Investment opportunity.
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