Home Buying in Pune on your mind? Keep a mental note of these things before investing

4 min read

If there is one city that has the soul of a hill station and the vibe of a hi-tech city, it is Pune. Nestled in the Sahayadris, the quaint city has evolved to be one of the fastest-growing cities in India.

Situated just 2 hours away from Mumbai, Pune is now an attractive destination for investors and homebuyers alike. Boasting a splendid climate, lush greenery, robust social infrastructure, cosmopolitan character, booming IT hub and proximity to some awe-inspiring holiday destinations, Pune has everything in its kitty to take the crown as the best city to live in.

Recently, Pune bagged the title of the Top Indian City in terms of liveability in The Ease of Living Index 2018 report. The city has an unrivalled living experience as it is surrounded by hills, giving it an edge over other metropolitan cities drastically affected by a pollution crisis.

Realtors have thus shifted their focus on this vibrant city amidst the hills and are coming up with residences that cater to the sensibilities and contemporary living aspirations of the city folk.

For those who want to call Pune their new home, here are some things to take note of before making an investment decision.

What is the cost of living in Pune?

Annual Expenses

For a family on a budget living, the expenses would come to 7-10 lakhs after taxes depending on the location.

For families who want to live a comfortable life with all the bells and whistles, the expenses go upwards from 10-15 lakhs. Tax included.

Living the luxury life can take your expenses northwards to 17-25 lakhs, with all taxes included.

Accommodation

Apartments Rental in Pune Price (Rs)
1 BHK ₹6,000 – ₹10,000
2 BHK ₹10,000 – ₹17,000
3 BHK ₹15,000 – ₹35,000

 

Miscellaneous Expenses

Description Bachelors Couples Families
Accommodation 5,000 – 10,000 12,000 – 20,000 15,000 – 25,000
Groceries 1,000 – 2,000 2,000 – 5,000 2,500 – 9,000
Transport 1,500 – 25,00 2,000 – 2,500 1,500 – 3,000
Utilities 1,000 – 2,500 2,000 – 3,000 2,000 – 3,000
Entertainment 4,000-7,000 2,000 – 5,000 2,000 – 5,000
Shopping 4,000-5,000 3,000 – 5,000 3,500 – 6,500
Kids Schooling Nil Nil 2,500 – 10,000

Best residential localities to stay in Pune

Affordable localities in Pune
Kothrud
Hadapsar
Wakad
Viman Nagar
Kharadi
Wadgaon Sheri
Wagholi
Kalyani Nagar
Hinjewadi
Magarpatta City
Karve Nagar
Baner
Pimple Saudagar
Talawade

Posh localities in Pune
Boat Club Road
Model Colony
Senapati Bapat Road
Erandwane
Koregaon Park
Sopan Baug

Ready Reckoner Rates in Pune

Pune is on the cusp of a massive urban boom. The infrastructure of the city is in  the hive of a massive transformation with new SEZ hubs, employment hubs, metro construction projects and other social infrastructure constructions. Though the rate of property appreciation has slowed down in a few areas, there is ample scope of property appreciation in the coming years.

Locality Property price (2019) Oct-Dec Property Price (2020) Jan-Mar
Kothrud 7,830-12,366 7,891-12,404
Hadapsar 4,799-8,291 4,830-8,523
Wakad 5,514-7,754 5,493-7,684
Viman Nagar 6,624-9,768 6,803-9,835
Kharadi 5,639-8,454 5,589-8,311
Wadgaon Sheri 5,514-8,654 5,337-8,410
Wagholi 3,699-5,523 3,817-5,819
Kalyani Nagar 7,407-12,239 7,497-12,110
Hinjewadi 4,597-6,748 4,611-6,756
Magarpatta City 6,484-9,665 6,861-9,899
Karve Nagar 7,241-11,535 7,194-11,765
Baner 6,095-9,352 6,083-9322
Pimple Saudagar 6,045-8,102 6,026-8319
Tathawade 5,051-7,124 5,015-7,001
Boat Club Road 11,304-17,538 10,767-16,071
Model Colony 10,435-15,845 10,818-16,160
Senapati Bapat Road 10,611-15,694 10,431-14,868
Erandwane 9,995-15,689 9,784-15,235
Koregaon Park 8,419-13,695 8,527-13,577
Sopan Baug 8,233-12,712 8,049-12,643
Akurdi 5,068-7,752 5,167-7,966
Mamurdi 4,377-6,302 4,284-6,237
Undri 4,062-5,989 4,153-6,145
Talegaon 3,235-4,819 3,200-4,817
Pashan 5,921-8,547 5,928-8,253

 

Three things to keep an eye on before investing in Pune

  1. Location and Connectivity: Pune is well-connected to every point of the city through its robust transport network. So, homebuyers can rest assured that zipping from one part of the city to another will be of zero hassles. However, every home buyer wants to cut travel time to office locations as much as possible.

So, for people travelling to Mumbai daily via the Pune-Mumbai Expressway, properties in Wakad, Aundh, Pashan, Mamurdi and Baner will be a good choice. The IT hub at Hinjewadi is also near to these locations and the areas are fully developed with malls, cafes and hospitals.

Apart from the above areas, places like Wagoli, Undri, Kharadi, are opportune destinations for real estate investment due to its proximity to the airport and emerging IT parks.

  1. Segment: Pune caters to home buyers from all walks of life. The city has residences in prime locations from renowned developers like Godrej, Avior, Shapoorji Pallonji, etc. in affordable, mid-segment and luxury segments. For homebuyers looking for affordable properties, head on to Wagholi, Kesnand, Undri, Talegaon. For mid-segment homes, scour at Viman Nagar, Kalyani Nagar, Koregaon Park, and Kharadi. Luxury homebuyers can peel their eyes for properties in Aundh, Baner, Wakad, Hinjewadi.

Buyers must do thorough research on the location, check out the necessary amenities on offer in the projects shortlisted and look for convenience factors before driving home their choice.

  1. Budget: The budget of a homebuyer can be a deciding factor at owning a home at a prime location in Pune. It is imperative to look at the carpet area of the property and its location. A good location will give a home buyer excellent price appreciation in the future and he will get a good ROI from the property. So, the budget must be planned and allocated in a way that can be of some benefit to the buyer.

Tips to check whether a builder in Pune can be trusted or not

  1. Evaluate past records: A strict evaluation of the developer’s records can give homebuyers a crystal-clear picture about its reputation. Scope for past records of projects delivered by the developer. Were they able to deliver on time? If there was a delay, dig out the reasons for the delay. Check whether the builder has handed over possession certificates to all his previous clients.

Next, look at the Ministry of Corporate Affairs website (http://www.mcs.gov.in) and find out whether the developer’s name is within the list of registered companies. See whether the developer has any history of charges against it.

  1. Financial health of the developer: A sound financial health track record is a sign that the developer can be trusted. Check out the annual reports of the developer if the company is a listed one.

A fraudulent developer will use funds collected from one project for other construction projects. It means that he has taken a loan in the name of an ongoing project or collected money from homebuyers of that project and showered that money on a new project. Stay away from these developers.

  1. Developer Rating: A developer’s track record in executing different projects as per the guidelines and handing over titles at the right time goes a long way in influencing the rating meter of the developer. Also taken into account are factors such as legal records, sizes of past projects, delivery schedules, financial strength, adherence to safety, market reputation, management quality and after-sales service. Developers are rated on a five-point scale from DA1 (Excellent) to DA5 (Poor).
  2. Reputation in the eyes of banks: Banks do extensive research on the developer profile before approving a loan for a project. They check the history of the developer, whether it has repaid previous loans on time, the type and amount of loan taken and project statuses. So, it can be beneficial if you find out whether a developer is in the good books of banks and housing finance companies.
  3. Pay a visit to past projects: Visiting past completed projects and interacting with the home buyers of those projects will clear the rest of the clouds hovering over your mind. Match the facts given to you by the developer with those provided by the buyers. It would be good if you can contact some brokers in the area and ask them about the developer.

Sumit Mondal Content Analyst at Square Yards
Sumit Mondal Content Analyst at Square Yards