Don’t miss the latest developments in business and finance.

Next destination for Pune's mid-segment buyers

Image
Alok Jha
Last Updated : Jun 27 2016 | 12:19 PM IST
Proximity to the airport, land availability, reducing supply in nearby sub-markets, infrastructure improvements and affordability will trigger new housing supply in the Dhanori region. Dhanori is adjacent to Lohegaon, where Pune's airport is located. It is a rather nascent market for the housing sector but is witnessing spillover development on account of its proximity to Viman Nagar. The interest of developers has now moved further towards Lohegaon and Dhanori, which are emerging as the new residential hubs in the neighbourhood.

While Dhanori has already witnessed substantial residential development on the stretch just off the main Lohegaon-Dhanori Road, the defence establishments and height restrictions due to the Air Force base have been impediments in the way of larger real estate developments in Lohegaon. The major developments are in the form of stand-alone and small residential projects/individual houses.

Current real estate dynamics
Due to the proximity to major defence installations in Lohegaon, the demographic profile of Lohegaon is currently inclined towards defence personnel. The dearth of developable land parcels and the increasing real estate prices in Viman Nagar have led to significant real estate activity . This activity is primarily led by small and mid-level developers, who are targeting the affordable and mid-segment buyer. In Dhanori, the profile of development is similar but the scale is bigger, due to the availability of more land.

The current residential prices in the sub-market range from Rs 3,400 to Rs 4,500 per sq ft. Dhanori has seen an overall annual appreciation of about six-seven per cent in the last two years. The current residential inventory and supply are skewed towards affordable and mid-segment housing projects, with configurations in the one and two BHK sizes, together contributing about 75 per cent of supply in the launched projects.

Infrastructure to spur growth
The concreting and widening of existing roads is a big pull factor for residential projects in this area. The State Government is also plans to improve the connectivity of Lohegaon with other parts of Pune. The 170-km-long proposed Ring Road, which will pass from neighbouring Charoli (two-three km from Lohegaon-Dhanori), will act as a major driver to spur real estate activity at a faster pace The average appreciation of residential prices in 2016 is likely to be six to nine per cent in the region.
The writer is Manager Research, JLL India

Also Read

First Published: Jun 26 2016 | 11:23 PM IST

Next Story