Pune has become renowned for its strongly-entrenched information technology (IT) culture, and this has led to the rapid growth of IT-centric precincts in and around the city, with a direct correlation to demand for real estate. The Hinjewadi IT Park has been a particularly strong growth generator for certain precincts. While Aundh was the first area to gain significantly from the IT boom in Pune, its development potential diminished rapidly under the onslaught of a relentless spate of projects. Prices also stopped appreciating. Soon, the limelight shifted and neighbouring Wakad has become one of the new high-interest investment locations for mid-income housing on the city's western periphery.
Located in the highly-developed PCMC area, Wakad has a host of positive market drivers to keep its real estate market vibrant. With proximity to the Mumbai-Pune Expressway and the thriving IT hub of Hinjewadi, as well as accessibility from the PCMC industrial area, Wakad now attracts end users in the age group of 30-40 years.
Residential property prices in Wakad are currently range Rs 5,500-6,300/sq ft, and a host of developers such as Kalpataru, Rohan, Kolte-Patil, Pristine, Kasturi and Javdekar are catering to the demand for homes from the mid-income segment. Wakad has seen annualised appreciation of 15-18 per cent and continues to benefit from demand drivers such as good civic infrastructure and vast improvements in connectivity to the city's key pockets.
While the absence of social infrastructure and a shortfall in public transport still provide a negative contrast, demand for housing in Wakad has been overtaking supply and prices have soared. Benefiting from the spill-over demand from Wakad, adjoining areas like Tathawade, Punawale, Ravet and Rahatani are also gaining momentum.
Wakad offers great connectivity to the industrial pockets of Chakan, PCMC and Talegaon. The key industries which have witnessed consistent and accelerating growth in Wakad and other key parts of Western Pune are IT, education and manufacturing. The demand for housing is driven by both the local industries and investors from Mumbai who are purchasing residential housing in this corridor.
The writer is managing director, Pune, JLL India
