Pune: The Affordable Housing Capital Of India
Pune is the 8th largest metropolis in India by GDP as well as by population. Pune's economy is primarily driven by manufacturing, IT and education sector. In recent times, manufacturing has seen major growth in Pune and is expected to further grow in alignment with “Make In India” campaign of current government. A few of the upcoming Industrial parks in Pune are - 1200 acres Japanese Industrial Park and a 1400 acres China sponsored Industrial Park. The Pune International Exhibition and Convention Centre which is currently being constructed in Moshi will be six times the size of Pragati Maidan in Delhi and will also attract manufacturing companies to Pune. The headquarters of the National Industrial Quarter will also be set up in Pune. To meet the demand arising out of employees in these companies, Pune is leading the way for affordable housing in the country.
We recently completed a research report on infrastructure and real estate development in Pune City and below are our findings:
Infrastructure
Pune Metropolitan Region can be divided into three key regions – 1) central region is governed by Pune Municipal Corporation, 2) Northern region is governed by PCMC (Pimpri Chinchwad Municipal Corporation) 3) Rest of the Pune is governed by multiple municipal bodies. (See Exhibit 1)
Incidentally most of the manufacturing setups are either in PCMC or rest of Pune. Key industrial parks in Pune are Pirangut, Talegaon, Chakan, Khed, Sanaswadi, Ranjangaon, Supa, Solapur, Kurkumbh, Jejuri, Shirwal, Lonand and Phaltan. Most of these areas are connected to Pune central through radial roads which connects Pune to major cities in Maharashtra such as Nasik, Mumbai, Paud, Satara, Baramati, Solapur and Ahmednagar.
In last 2 – 3 years most of the new supply has come in micro markets in Rest of Pune Metropolitan Region such as Wagholi, Hinjewadi, Undri, Talegaon and Bavdhan. More than 50% of new supply launched is in affordable range of <50 Lakhs budget. Developers have achieved the same through construction of larger share of 1 and 2 BHK units (~81%) .
With large share of upcoming supply in outer micro markets, infrastructure is going to be severely constrained in Pune. Though there are multiple large road projects such as ring road, BRTS and road widening planned, yet on ground progress has been slow. In comparison, PCMC areas have shown remarkable improvement with completion of spine road and other social infrastructure.
Conclusion
We expect Pune will continue to be the hub of affordable housing, most of which will be constructed in outer micro markets such as Wagholi, Lonikand, Tathawade, Talegaon Dabhade, Moshi, Bhosari and Chakan. Government needs to quickly complete infrastructure projects to improve the habitability of these areas.
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