Major Infrastructure Projects Reshaping Pune’s Real Estate

Pune has been on steady growth since 2006, but the growth accelerated with the incoming of the IT and infrastructure companies. COVID-19 has hit the real estate the most, but Pune’s real estate bounced back to becoming a residential and logistics demand leader. Pune has been home to not only pleasant weather but also to infrastructure projects, residential properties and commercial development. 

Pune’s infrastructure development has attracted a number of domestic as well as international investors. Areas like Hinjewadi, Baner, Bavdhan, and Kothrud have seen a rise of 24% in their price movement. A few significant infrastructure developments are revolutionising Pune’s real estate market. 

Pune Metro Development

Pune’s real estate is witnessing a strong revival in client sentiments post-COVID-19. The Pune Metro, a backbone in infrastructure projects, is a project costing approximately INR 11,420 crores and has been undertaken by the Government of Maharashtra, MAHA Metro, which is a Special Purpose Vehicle (SPV) of the Government of India.

The project is aligned with 2 lines consisting of 30 stations with 5 underground stations and 9 elevated ones. The implementation of this project will result in a higher appreciation of capital and rental yield. Line 1 covers a distance of 16 kilometres starting from Pimpri-Chinchwad to Swargate, and Line 2 covers 14 kilometres from Kothrud to Vanaz. The talks of Line 3 covering 23 kilometres from Hinjawadi to Civil Court are in process. Investors are lining up to develop along the lines of this metro project. MahaMetro Corporation plans to develop an area of 9.54 million sq. ft. along the metro line, promoting the commercial development in Pune. 

Smart City Development

The Indian Government has initiated a ‘Smart Mission’ project to nudge the residential properties in Pune. A total of 98 cities are participating in this project, with Pune soaring the highest. A smart city is a city decorated with amenities like highways, metros and efficient transport, charming the IT companies and investors. The price range of the properties is supposed to appreciate between 20% – 40%. This development project uses Information and Communication Technology (ICT) to boost the quality of services like energy, transport and other utilities while reducing total consumption, waste and overall price. Pune aims to become ‘future-ready’ by providing the best comfort while meeting the global standard of living. 

You May Also Like

Purandar Airport Development

Purandar airport is a commercial development in Pune to boost the real estate market by providing an easy commute. The new Pune International Airport, named Chhatrapati Sambhaji Raje International Airport, spreads over 2,400 hectares. This commercial development costs roughly INR 2,000 crores, and it is one of the infrastructure projects in Pune that will actively follow the green initiative upon completion in 2024. 

The real estate landscape of Pune is expected to bloom, and the most significant beneficiaries would be the nearby localities. The airport will comprise 2 runways stretching up to 4 kilometres each and will fetch investors from all corners of the world. The project is located 45 kilometres from the city’s heart and has become a prime spot for all real estate seekers. The villages near the airport are witnessing a blast of development with the promise of an influx of people. 

These key projects are the backbone of Pune’s infrastructure development. This beautiful city has taken a visionary step towards reshaping its real estate sector after being hit by the pandemic, which many cities are still struggling with. Apart from these, some other ongoing ambitious projects point out its resilience. Pune currently ranks as the second-largest IT hub and fifth for the pockets of the Foreign Direct Investments. This has resulted in a price surge of the properties in all localities. The trend that launches have brought with them can be seen in the following table:

Due to COVID-19, Pune faced a loss of house sales in the years 2020 and 2021, its percentage dipping by 12.1% and 20.6% respectively. For the year 2022, the market forecast is that house sales will cross the 40,000 mark due to the new projects marking a hike in sales percentage of 40.5%.