In Pune, Old Is Gold And New Is Kicking

Though it is an important determinant, budget is not the only factor that drives our home-purchase decisions. We want our home, even if it is small, in a locality that is safe, has a well-developed social infrastructure, and is fairly green. We also want our home to be in such parts of a city where prices are likely to increase in future. Simply put, when you are out to buy a home, you have several goals attached to it.

Now, if you begin to zero in on a city while keeping all these factors in mind, real estate in Pune is one of the first that you think of. Often referred to as India's Detroit and Maharashtra's cultural capital, Pune is a city that has seen growth across localities. Properties in Pune remain an exceptional performer, despite overall demand in the real estate sector remaining muted.

In fact, a PropTiger DataLabs analysis of the city's eight micro markets – National Highway-4 Bypass, PCMC (Pimpri-Chinchwad Municipal Corporation) , South, Northeast, East, West, Central, and Nagar Road – shows localities in Pune had a better absorption rate in 2015 than markets in other major cities of the country. The analysis ranks the micro markets based on absorption, new launches, inventory overhang and livability score, from one to eight.

Here's a look at the key findings of the analysis:

Central Pune: Pune's central localities were ranked first in terms of livability and third in price appreciation, showing the co-relation that price appreciation is mostly taking place in areas that score well in livability. Some of the best properties for sale in Pune are those in the Central Pune localities of Ashok Nagar, Bhawani Peth, Bibwewadi, the Camp Area, Dattavadi, Deccan Gymkhana, Gultekadi, Guruwar Peth, Kasba Peth, Koregaon Park, Narayan Peth, Parvati Darshan, Rasta Peth, Raviwar Peth, Sadashiv Peth, Sangamwadi, Shanivar Peth, Shivaji Nagar, Shukrawar Peth and Swargate. However, among the eight micro markets, the absorption rate in Central Pune was the lowest, partly because of high prices.

NH-4 Bypass: Including localities of Ambegaon Budruk, Aundh, Balewadi, Baner, Bavdhan, Bhugaon, Hinjewadi, Karve nagar, Kothrud, Mahalunge, Mulshi, Pashan, Ravet, Shivane, Sus, Talegaon Dabhade, Wakhad and Warje, the NH-4 Bypass micro market was the top investment destination in the city in 2015. The working population of the information technology (IT) sector was the prime reason for better investments in these comparatively affordable localities. Flats in Talegoan locality of NH-4 Bypass attracted buyers' interest for the locality's proximity to Mumbai.

PCMC: Together with NH-4 Bypass, the PCMC region accounted for 51 per cent of all launches and 54 per cent of total sales in the city. The IT/ITeS hubs were the main drivers of growth in both markets. In terms of absorption, PCMC stood second. Localities in the PCMC region, an automobile and manufacturing hub, include Akurdi, Alandi, Bhosari, Bopodi, Chakan, Chikhali, Chinchwad, Dapudi, Dighi, Gahunje, Jambhul, Kalewadi, Kasarwadi, Khadki, Mamurdi, Moshi, Pimple Gurav, Pimple Nilakh, Pimple Saudagar, Pimpri, Rahatani, Rajgurunagar, Talwade, Tathawade, Thergaon.

East and Northeast: The east and northeast micro markets of Pune offer upsides for the future as these micro markets are still coming up. Future growth in these markets is likely to be triggered by the fact that they are close to IT and industrial hubs. Wagholi, a locality in Northeast, was rated the top performer in 2015, for its healthy sales volume and new launches. The east localities include Hadapsar, Loni Kalbhor, Manjari, Mundhwa, Phurshungi, Saykarwadi, Sopan Baug and Uruli Kanchan. The Northeast micro market has localities like Bakhori, Kharadi, Wadgaon Sheri and Wagholi.

West: Among properties for sale in Pune, those in the western region – Agalambe, Chandkhed, Katarkhadak, Lavasa, Nere, Panshet, Pirangut and Varasgaon – present a relatively cheap investment option for the long term. The market stood seventh in terms of absorption and price appreciation, and eighth on the livability score.

Nagar Road: In terms of year-on year price appreciation, the Nagar Road localities – Dhanori, Kalyani Nagar, Lohegaon, Tingre Nagar, Viman Nagar, Vishrantwadi and Yerawada – were the top performers. While the micro market was second on livability score, it stood sixth in terms of absorption of properties.

South: The overall score of the localities in the South Pune micro market remained steady, with the micro market standing third in livability and absorption, and fourth in y-o-y price appreciation. The south micro market includes localities of Dhayari, Handewadi, Katraj, Kondhwa, Mohammadwadi, Sinhagad Fort, Undri, Vadagaon Bundruk and Wanowrie.

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