Is Pune a Viable City to Invest in a Luxury Property

The 2010s was the second phase of the development throughout India after establishing the IT framework in the previous decade. Within this significant decade, the economic growth of the prominent metros of India has a majority contribution from the IT, E-Commerce, Chemicals & Pharmaceuticals, Finance, and FMCG. Owing to these strong suits, the working professionals from these industries have experienced a substantial improvement in the standard of living, thus facilitating the demand for an upgrade in a residential zone as well.

This demand was a perfect opportunity for real estate developers to launch luxury residences in metros. But is this limited expansion enough to claim a luxury market in India?

As mentioned earlier, the past decade set off a timeline for urban renovation. Pune city was indeed at the forefront of this transformation, with Information Technology, manufacturing, automobile, and PSUs establishing a robust commercial zone. This facilitated an influx of professionals from all over India.

With this diversity, it was a level playing field for real estate developers in Pune to introduce quality projects accommodating varied needs. Subsequently, luxury projects gained traction too.

So the question here is whether Pune is actually a city that can complement the luxury segment. We have put forth some arguments to support this claim:

Efficient Suburbs that host such projects

New Kalyani Nagar, Kothrud, Koregaon Park, Erandwane are the top plush locales. However, some builders and developers in Pune believe that the most suitable location for an elaborate project is amidst the abundant green landscape in Pune.

Bavdhan (adjacent to Kothrud), is one such emerging suburb that is not entirely secluded from the city but also offers scenic tranquility. This also allows to set up projects that can incorporate lavish amenities.

Gera’s Isle Royale is a testament to a luxurious project that has perfectly assimilated the benefits of Bavdhan. Located in the peaceful hills, the apartments and the Villas in this project are luxuries within nature.

Physical Infrastructure for Convenience

Pune Municipal Corporation had issued several development projects to integrate a balance between the commercial and the residential sector. This prompted a vast array of advanced physical infrastructure that connects the inner city with the suburbs.

The State Government has allotted Rs.30000 crore to develop the infrastructure of new roads, airports, economic corridors, and highways. While Mumbai-Pune expressway was the asset of 2002, this decade started off with several productive proposed plans such as Pune Metro that is slated to cover Pimpri-Chinchwad to Swargate with Line 1 and areas between Vanaz and Ramwadi with Line 2.

Pune Metropolitan Region Development Authority (PMRDA) has commenced on the plans for a Pune Ring Road, stretched along 128 km that shall encapsulate around 66 villages and the fastest growing suburbs.

Real Estate Market Appreciation

The direct impact of the ongoing infrastructural development has upticked the speculative real estate market. The bullish outlook has already established a steady real estate in Pune as more young professionals are employed at the major commercial hubs such as Hinjewadi IT Park, Zensar Knowledge Park, World Trade Centre. Besides, since Pune also harbours conglomerates, the standard of living has facilitated a luxury segment in high demand.

All these components accounted for have projected a considerable market appreciation by the next decade itself. Simply put, one can enjoy high Long Term Capital gains (LTCG) on such investment.

Capitalizing on this property value, industry experts have estimated that luxury flats in Pune will not just be an alternative to the metro but a valued asset in itself, all on the guarantee that Pune City has created a viable landscape.

Dimple Ahuja is a freelance writer whose passion lies in the realm of real estate. With over 12+ years of experience in the real estate industry, she has had the opportunity to work closely with real estate developers and home buyers.