 "Undri-Pisoli, Pune: Spillover demand from nearby areas, good connectivity to drive prices")
Undri-Pisoli, an emerging pocket of Pune belt, has various good demand drivers, such as the working population in Magarpatta and the central business district (CBD) area, spill-over demand from Hadapsar, affordable prices, connectivity to central Pune and advantageous proximity to the CBD when compared to other outskirts. The information technology (IT) development within the Magarpatta township, along with industrial units in Hadapsar, are the primary drivers for residential demand in this corridor. With Wanowrie, Kondhwa and NIBM Road already densely developed, the focus has shifted to Undri, Pisoli and neighbouring areas.
In the past three to four years, this area has become one of the most preferred residential markets for people working in the Camp areas. This sub-market is now also in demand from people staying at Wanowrie, Kondhwa and Fatimanagar. The major reasons for buying properties in this pocket are the possibility to upgrade to bigger flats at affordable prices, acquiring a second home close to the existing one and also second-generation buying in this area.
The region has also witnessed spillover demand from Hadapsar and Kharadi, as the prices in those locations have increased significantly and are no longer affordable for entry-level home buyers. This belt has also gained significance because of the presence of quality schools. Retail development is also becoming a factor driving the potential of the region.
Once the new Ring Road is completed, this pocket will see massive development, on the heels of highly improved connectivity in the coming years. Some prominent developers have also acquired big land parcels in this region, and are likely to launch large residential projects in the medium to long term. Amit Enterprises Housing currently have two mid-income residential projects in Undri, and other builders, such as Godrej, Goel Ganga and Kumar also active.
Property buyers can expect 5-10 per cent annual appreciation on capital values, depending on location, product, delivery time. Unlike end-users, investors are also focused on the best time to exit; a horizon of three years or more needs to be maintained for investments done today. That said, returns are subjective and will depend on factors like project, area, location, etc. There is no thumb rule for how long one should stay invested, with the optimal horizon always being a function of specific project, entry cost and annual appreciation achieved. However, a horizon of five-seven years from project launch is very advisable.
In all cases, buyers must do thorough due-diligence before buying properties in any of Pune's emerging locations. This includes due-diligence of the certified copies of registered title deed of the land parcel on which the property is to be built, and ensuring all approvals are received for the development. Based on the survey numbers mentioned in the title deed, buyers must check the land use of the land parcel approved by the development authorities' master plan.
In the past three to four years, this area has become one of the most preferred residential markets for people working in the Camp areas. This sub-market is now also in demand from people staying at Wanowrie, Kondhwa and Fatimanagar. The major reasons for buying properties in this pocket are the possibility to upgrade to bigger flats at affordable prices, acquiring a second home close to the existing one and also second-generation buying in this area.
The region has also witnessed spillover demand from Hadapsar and Kharadi, as the prices in those locations have increased significantly and are no longer affordable for entry-level home buyers. This belt has also gained significance because of the presence of quality schools. Retail development is also becoming a factor driving the potential of the region.
Once the new Ring Road is completed, this pocket will see massive development, on the heels of highly improved connectivity in the coming years. Some prominent developers have also acquired big land parcels in this region, and are likely to launch large residential projects in the medium to long term. Amit Enterprises Housing currently have two mid-income residential projects in Undri, and other builders, such as Godrej, Goel Ganga and Kumar also active.
Property buyers can expect 5-10 per cent annual appreciation on capital values, depending on location, product, delivery time. Unlike end-users, investors are also focused on the best time to exit; a horizon of three years or more needs to be maintained for investments done today. That said, returns are subjective and will depend on factors like project, area, location, etc. There is no thumb rule for how long one should stay invested, with the optimal horizon always being a function of specific project, entry cost and annual appreciation achieved. However, a horizon of five-seven years from project launch is very advisable.
In all cases, buyers must do thorough due-diligence before buying properties in any of Pune's emerging locations. This includes due-diligence of the certified copies of registered title deed of the land parcel on which the property is to be built, and ensuring all approvals are received for the development. Based on the survey numbers mentioned in the title deed, buyers must check the land use of the land parcel approved by the development authorities' master plan.
The writer is managing director - Pune, JLL India