Where Should You Rent or Buy Flats in Pune?

Where should you rent or buy flats in Pune?
The rental residential market in Pune has experienced exponential growth in the past decade. Because of the migration of people from all parts of the country for job and education opportunities in Pune, many people look for residential options to rent. There are quite a few areas in Pune which do better than others in the rental market. The top 10 rental localities preferred in Pune include Magarpatta, Wakad, Kharadi, Aundh, Pimpe Saudagar, Kothud, Hadapsar, Baner and Viman Nagar. Of the top localities, Magarpatta and Wakad are the top two most preferred areas.
These two areas are most popular among immigrants because of their proximity to IT companies located here. The elevated demand is pushing up rental values in the area. When it came to leasing and sales, this area is one of the most popular. When it came to leasing property, Wakad tops the list of residential neighbourhoods while Magarpatta tops when it comes to flats in Pune for rent.

Wakad
When it comes to rental and capital localities preferred, Wakad has topped the list. There is good infrastructure in the area and it will continue to grow in future. Connectivity is being enhanced with a flyover which will connect Hinjewadi to Pimpri passing through Wakad. Roads in Wakad have been widened and power supply to the area is quite adequate. The drainage system in the area has been improved over the years.
Hinjewadi has an IT hub and Wakad being close to Hinjewadi has attracted a large population of employees of the IT sector. Also, Wakad is only 10 to 12 kilometres from areas such as Baner, Aundh, Pashan and Balewadi. The locality is also only 3kms from Pimpri-Chinchwad Industrial Area. The rental average value in this area is only Rs 13,000 or so. Several 1 BHK apartments are also available within Rs 5000 to Rs 10000 in a month.
The Bio Technology Park and IT companies of Hinjewadi have led to a growth in popularity of Wakad continuously. Those working in industrial areas of Pimpri Chinchwad and IT companies have a preference for this locality. Those working in senior levels in the company prefer to buy flats in Pune in Wakad while those starting out prefer rental accommodation. The area is quite peaceful and near work places of professionals which is why it is mostly preferred by families and professionals. Part of the increasing popularity of Wakad can be contributed to the PCMC or Pimpri Chinchwad Municipal Corporation. The wider roads, improved drainage and uninterrupted water and electricity supply makes the area lucrative.  Developers are being attracted to Wakad because of the improvement in infrastructural amenities. Both investors and end users prefer this area. Those coming into Pune from Mumbai would have Wakad as their entry point which is why many people from Mumbai are investing in properties in Wakad. Apart from the hefty monthly earning through rents, there would be high capital returns on flats in Pune Wakad in the near future. 

Hospitals, schools, ATMs and banks are all present in Wakad and entertainment zones such as restaurants, theatres and malls are located nearby. Wakad enjoys connectivity to the Mumbai-Pune Bypass Road whereas Chinchwad and Pimpri provide connectivity via railways. Realty agents who are active in this area believe that the realty growth experienced by Wakad shall be boosted as Hinjewadi is expanded in near future. Therefore, even for the coming few years, Wakad would continue to enjoy popularity as residential destination.
Earlier, Wakad was a small village which has now turned into a bustling suburb of Pune. The rapidly developing infrastructure and numerous companies have led to the popularity of Wakad as an investment destination. Wakad has held its top spot not only in the first quarter of 2014 but also in the last quarter of 2013. 





Magarpatta
When it comes to rental properties, Magarpatta is the second preferred locality in Pune. The rental average value of the area is around Rs 15,000 to Rs 20,000 in a month in Magarpatta.  Despite being a satellite area in Pune, it has an IT hub which makes it preferred among IT professionals. Reputed IT concerns such as iGATE, Accenture, HCL Technologies, Avaa and ATA Elxsi are located here. The other IT parks which are closer to Magarpatta are the EON IT park, Kharadi IT park, Fatimanagar, Koregaon Park, Hadapsar Industrial Estate and Kalyani Nagar. The proximity to so many IT parks also adds to the appeal of Magarpatta as a residential locality.Magarpatta is not too far from Pune Railway Station and the Lohegaon Pune International Airport. 
These landmarks are only 8kms and 13kms away from Magarpatta which makes the locality appealing to those looking for temporary accommodation. Therefore, if you are seeking to invest in the real estate market in Pune, think of investing in Magarpatta or Wakad as it would be profitable in the near future in terms of rental returns and capital gains.  

Real estate market in Pune
On an average, the capital values of flats in Pune range between Rs 5,400 and Rs 6,400 whereas the rental value is between Rs 10,000 to Rs 15,000. For a 2BHK apartment which costs between Rs 40 lakhs and Rs 80 lakhs, you would have to pay Rs 15,000 or so as rent. The size of such an apartment is between 800 sq. ft and 1200 sq. ft. Mostly 2BHK units are supplied in Pune.
For buying a 3BHK apartment in Pune, one would have to pay up between Rs 80 lakhs and Rs 1 crore while the rental values of the area are between Rs 15,000 and Rs 22,000 in a month. You can also find 1BHK flats in Pune for rent whose rental rates vary between Rs 5000 and Rs 10,000 in a month, while the capital value is between Rs 30 lakhs and Rs 40 lakhs. 

Therefore, the real estate scenario in Pune is quite upbeat and both seekers of permanent residence and temporary residence have options to explore. Other popular areas in Pune include Koregaon Park, Hinjewadi, Pimple Saudagar and Aundh where buyers can explore property investment.

Top 2 Localities of Pune to Rent Property In

Pune is a fast growing city and most surveys have estimated that Bangalore and Pune are the cities whose capital values for residential properties are growing the fastest. Both cities are centres for the IT Boom and there are certain areas in Pune which are doing very well. Most of the IT firms of the city are concentrated in Koregaon Park, Viman Nagar, Kalyani Nagar, Hinjewadi and Aundh. Therefore, it is natural for rent seekers to prefer these areas.

Those interested in living in Central Pune, close to the railway station and airport and other IT hubs should choose Sopan Baug or Vishrantwadi. These areas are less expensive compared to Koregaon Park and Viman Nagar but they offer good connectivity and quality of life to their residents.
Vishrantwadi

Those who have invested in Vishrantwadi in Central Pune have much reason to rejoice. When it comes to the rental market, the locality gives areas such as Kalyani Nagar and Viman Nagar a chase for their money.

The highest returns for the second quarter of 2014 have been clocked by this area with a rental yield of 3.18 percent. Therefore, you are set to receive the highest rental returns every year compared to other areas of Pune if you have invested in property here.

Currently, capital values of Vishrantwadi are around Rs 5100 to Rs 6500 per sq. ft Therefore, if you have invested roughly Rs 50 lakhs in a property here, you can earn around Rs 1.5 lakhs from it every year.  The capital market of the area is saturated almost but the demand for rental accommodations is quite high here.

Affordable and Plush

Vishrantwadi is a classy area in Pune to live in which offers premium lifestyle. Also, compared to areas such as Viman Nagar, Kalyani Nagar and Koregaon Park, where the rental values are roughly 20 to 25 percent more, the rental values of Vishrantnagar are much affordable.

Flats in Pune for rent in the 3, 2 or 1BHK style are available here for Rs 12000 to Rs 20000 in a month.

Infrastructure and Connectivity of Vishrantwadi

Because of its central location, access to different parts of Pune is possible from here. The area is near the Alandi Road which is in proximity to Viman Nagar, Kalyani Nagar and Shivaji Nagar. The important roads which connect Vishrantwadi to other areas of Pune are Dhanori Road and Vishrantwadi Airport Road or Tingre Nagar Road.

The airport and Pune Railway Station in Lohegaon is quite close. The airport is roughly 8 minute drive away or 4kms from here and the railway station is only 7kms which takes 20 minutes by car.  Autos and buses connect the locality to rest of Pune. The PMPML or Pune Mahanagar Parivahan Mahamandal Limited has a number of routes on which buses ply. A proposal for implementing BRTS corridor on Airport Roads and Alandi has also been proposed.

The social fabric of the area is also well developed as retail and brand showrooms are present here. Banks, restaurants, medical care centres, colleges and schools are present here.

Closeness to IT hubs

The IT hubs of Yerwada Jail Road are only 3kms from Vishrantwadi. IT employees would find this a promising location to be in because of the presence of companies such as TCS and IBM. In fact, IT employees are the biggest demanders of rental flats in Pune Vishrantwadi. In terms of connectivity, Vishrantwadi is a good place to stay in for connectivity, good lifestyle and affordability.

Sopan Baug

One of the most premium areas in Pune is Sopan Baug whose flats’ capital value is around Rs 1 crore roughly. Surprisingly, rent is quite affordable here. Spacious and premium properties are available in this area for only Rs 17,000 as monthly rent. For this amount, you can easily rent a 2BHK apartment here.

The capital values in Sopan Baug for 3 and 2BHK flats are between Rs 75 lakhs to Rs 1.45 crores and more. Surprisingly, the rental values are between Rs 18,000 to Rs 25,000 in a month. For a 2BHK apartment whose size is between 1000 and 1200 sq. ft., you have to pay Rs 20,000 as monthly rent. Several options for 3BHK apartments are also available for Rs 25,000 or more in a month. These flats range from 1400 to 1600 sq. ft. 

Most people who relocate to Pune for jobs assume that cost of renting an apartment in Pune’s premium and posh locations is very high. However, most of them are taken aback when they find out that the rental accommodations in Pune’s prime locations are not only affordable but also spacious and comfortable. They offer peaceful environments which allow residents to live a relaxed and quality life.

Sopan Baug is close to Kalyani Nagar which is a hub of IT firms. A lot of IT firm employees choose to stay at Sopan Baug over Wadgaon Sheri, Koregaon Park and Hadapsar.  This is mainly because of the peaceful environment offered by Sopan Baug for its proximity to the Empress Garden. Peaceful and serene environment along with spacious flats offer good and quality life to renters.

Rents in Sopan Baug are slightly higher than Hadapsar and Wadgaon Sheri although the locality is quite well established and is classified as premium over many others. The social infrastructure is also quite good in the area alongside connectivity. Another positive aspect of SopanBaug is that its rents are cheaper by 10 to 15 percent compared to Kalyani Nagar and Koregaon Park.

Sopan Baug enjoys good connectivity with the railway station and the airport via the Princes of Wales Road. Lohegaon’s international airport is only 9.5kms away from here while the Pune Railway Station is only 4kms away. Other prominent areas such as Koregaon Park, Kalyani Nagar and Viman Nagar are only 5 to 9 kms away from here. The posh location, access to other posh and important areas and a serene and calm environment in Sopan Baug attract property buyers and renters.

Therefore, if you are new to Pune, you should choose one of these affordable, safe and secure localities to live in.

Top 3 Areas of Pune Offering Affordable Housing Options

A lot of areas in peripheral Pune are developing into residential hubs for their proximity to the IT hubs in the areas. One such area towards the north west of Pune is Sinhagad Road which has shown elevated residential development as roughly 22 brand new projects are slated to be delivered in 2016-17. Given the population concentration in Pune which is active in manufacturing and IT industries, the demand for multi-storeyed flats in Pune has heightened.

Because land banks have started shrinking inside the city, residential properties need to be constructed in peripheral areas. Micro markets are seeing a lot of development in real estate.  From villas to multi-storey apartments, a large variety of housing choices are available to buyers. The prices of these apartments are between Rs 50 lakhs to Rs 1 crore. The sizes of these flats in Pune are between 650 sq. ft. to 1500 sq. ft. and their layouts are 3, 2 and 1 BHK. Some of the projects also offer 4BHK apartments whose size varies between 1800 sq. f.t and 2000 sq. ft. However, buyers in Pune prefer the 2BHK configuration.

The projects are mostly gated communities while amenities such as gymnasia, club houses, children’s play area, indoor games room, parks, lifts, rain water harvesting facilities, power back up, swimming pool and 24 hour security is available. 

Popularity of Sinhagad Road 

The area is only 8kms from the central part of Pune and it takes 30 minutes to reach the area by car. The IT parks of Hinjewadi and Baner are well connected to the area as both these areas are 30 to 35 minutes from the two IT hubs of Pune. Mumbai-Bangalore Highway is also quite accessible from this area. Banks, hospitals, restaurants, schools and entertainment zones are all located within 5km radius from Sinhagad Road. The availability of land and easy connectivity has made the area lucrative to buyer and developers alike.

Future of the Area

A nine kilometres long road is being proposed which shall lead to the Sinhagad Fort directly. To avoid the traffic snarls that this stretch faces this road shall be constructed. One of the 4 corridors being planned by PMC or Pune Municipal Corporation for BRTS (Bus Rapid Transit System) is the Dhayari to the area of Hadapsar shall go through Sinhagad Road.

A mega township titled Nanded City shall be spread over 700 acres in Sinhagad Road shall provide additional thrust to realty market of the area. The township is located only 3kms from here and can be reached within 7 minutes. Numerous IT companies, corporate houses, gaming and animation companies shall be located here. The location of these corporate offices shall create work opportunities that would in turn result in housing demand of the area. From this, it can be inferred that demand for property would be high in Sinhagad Road and so would the supply be. Many property options are available in the area to pick from and they are negotiable as well. 

Rahatni and Chikhali

Located in Northern Pune, Rahatni and Chikhali have witnessed the largest supply of small flats. These two neighbourhoods have mostly 2 and 1 BHK flats to offer. The higher capital values for large units has made the middle class turn to probably house buyers for opting for relatively affordable and lower priced smaller units. Most of the buyers of the area are professionals whose monthly salary is between Rs 25,000 to Rs 50,000. Such professionals belong to the mid income group that cannot afford loans of bigger amounts. As these people are not willing to invest more than what their budget permits, they have to keep away from bigger units.

For a 1BHK flat in Pune Chikhali which has a carpet area of 600 to 700 sq. ft, buyers would have to pay around Rs 20 to Rs 25 lakhs while for similar apartments in Rahatni with carpet area of 700 to 900 sq. ft., the price is around Rs 30 to Rs 35 lakhs. In Rahatni, 2BHK flats of carpet area 900 sq. ft. to 1200 sq. f.t are priced at Rs 40 lakhs to Rs 65 lakhs while similar flats in Chikhali that measure 700 sq. ft. to 900 sq. ft. would set buyers back by Rs 30 lakhs to Rs 50 lakhs.

Builders have understood the trends in the market and are willing to provide more numbers of small units. In these areas, the sales of 4 and 3BHK flats are almost negligible this is another reason why builders are focusing more on small units. Developers cannot slash price and in turn profits which are associated with bigger units. However, they can focus on smaller units when the demand is high. The profit margin of small units is lesser but the demand being high makes it profitable to supply small units as the margin is covered. Relative to 2BHK and 1BHK apartments, only a handful of 3BHK flats in Pune are available in these areas. The cost of a 3BHK flat in Chikhala is around Rs 45 lakhs to Rs 70 lakhs while price of similar units begin from Rs 60 lakhs and may hike up to rupees 1 crore in the area of Rahatni.

Compared to investors the numbers of end users in Rahatni and Chikhala are more. Those who purchase these flats prefer living in them and not consider them as investments. A lot of the buyers are not locals of Pune and hence they are unwilling to spend too much on property. They prefer rental accommodations and even then small units are chosen over large ones.

When it comes to physical and social infrastructure, Rahatni and Chikhali are both developing. Compared to developed areas of Pune such as Koregaon Park and Hinjewadi, prices are still low. Market analysts believe that land banks of Koregaon Park and Hinjewadi are saturated almost and hence Rahatni and Chikhali have a lot of scope as many developers are introducing projects in these areas.

Therefore if you are constrained by budget, then you can opt for Rahatni or Chikhali as an investment destination.