Made by:

Yomi Vinayaka

Points Covered Executive Summery

Pune Fact File

Pune Real Estate

Demand Supply Gap

Key Findings

Property Attractiveness Index

Future Predictions

The Oxford of India, Pune is known for its education and rich culture across the world. Along with the University colleges and its affiliates, there are a number of other deemed universities and institutes which are captivating attention of students and researchers to Pune round the globe.

The city continues to be an IT and manufacturing hub, as a result, its providing employment to a huge mass of people. This has also led to a massive increase in the rate of people migrating towards the city.

The GDP rate in the first quarter of the year is recorded to be 4.9% which is the slowest economic growth rate in the last nine years. Notwithstanding, the supply in the real estate market is still unable to catch breath with demand.

Loan interest rates are expected to go down by the coming quarters following it the real estate market is expected to be bullish in the next half of the year.

Pune is a weekend gateway for Mumbaikars. The hospitality industry and organized retail will continue to magnify.

Yellow pages results in 582 registered builders and developers in the city as of 16th April 2014

Religion in Pune

HinduMuslimsBuddhistJainsChristiansAtheist

Total Population in Pune

82,42,142 Literacy rate and male female ratio:

Other Facts: Density of population as per census 2011 was 11000 KM^2

65% of the total population is below 35 years of the age.

The per capita income as per 2011 census was 1,11,637

(INR).

1. Residential

2. Commercial

Zone Areas Covered

Central Pune Bhosale Nagar, Deccan, Model Colony, Prabhat Road, Shivaji Nagar

North Pune Chinchwad, Akrudi, Pimpri-Chinchwad Road, Pradhikaran

South Pune Ambegaon, Katraj, Kondhwa, Parvati, Salisbury Park, Sinhgad Road, Mohammadwadi Road, NIBM, Wanowrie

East Pune Hadapsar, Kalyani Nagar, Kharadi, Koregoan Park, Wagholi, Viman Nagar, Bund Garden, Camp.

West Pune Aundh, Balewadi, Baner, Bavdhan, Hinjewadi, Kothrud, Pashan, Pimple-Saudagar, Wakad.

Major Locations in Pune

Preference Areas Covered

Central Business Areas(Prime Locations)

Deccan, FC Road, Bund Garden, Boat Club Road, MG Road and JM Road

Secondary Business Locations

Koregaon Park, Senapati Bapat Road, Aundh, Kalyani Nagar, Wanowrie, Viman Nagar, Kothrud, Magarpatta and Pimpri-Chinchwad

Other Business Locations Kharadi, Baner, Hinjewadi, Talawadi, Wakad, Pimple Saudagar and Phursungi

Detailed Price list of different locations in Pune is attached at the end

Locations with highest price appreciation for the period June 2011- June 2013

Source: Based on a research from GERA

Locations with lowest price appreciation for the period June 2011- June 2013

Source: Based on a research from GERA

Demand Supply Gap Expected to Remain till the Next Year

Factors Affecting Property Ownership Decision for Residential Purpose.

Property Attraction Index Infrastructure: Proper transport facility. Connectivity with schools, colleges,

hospitals and rest of the city. Baner, Aundh and Kalyani Nagar are the best areas.

Accessibility: Cost of the property. Its capital and rental values. The cost of the

property in the above mentioned areas is very high. Hinjewadi and Kharadi can be smart pick. Areas like Chakan are coming up with good residential projects.

Proximity: The distance between workplace and home. Close to organized

retail. Baner, Aundh and Kalyani Nagar are closely connected to major IT zones in Pune. These areas also have good number of FMCG brand outlets.

Future Developments: As far as future developments are concerned, Pimri-

Chinchwad and Hinjewadi area are most likely to get restructured with a number of new commercial project lined up to welcome customers in the coming 3 years.

Other Factors: There are other factors which also attract consumers like community, distance between temple/other prominent places, amenities etc.

Key Findings Major Factors Responsible for the Growth of Real Estate Market in Pune

o Pune is an Education hub attracting students from across the world. o Development of IT sector and manufacturing units which gave employment to a huge mass of

people. o As a result the rate of people migrating to the city has escalated

Pune is the second most affordable places to rent in India. It is ranked as 3rd among the major cities of India to own a house.

Over the last few years Viman Nagar has become the finest locations in Pune for it having five star

hotels, malls, luxurious residential projects and homes to industrialists. Investors are more inclines towards buying property at Hinjewadi area because of its easy accessibility

to Mumbai-Pune Expressway

The city is expanding in concentric circles. Upcoming properties in Pune are very urban and more environment friendly than inner city. There are 20 proposed malls projected in the city which will give a total different outlook to organized retail market in the city.

Commercial

o Commercial space is cheaper than residential space o Demand Supply Mismatch

Source: icicihfc.com

Key Findings

Commercial: o Major Driver of Investment Decision

Cost is the major driver of decision in commercial property trade Close proximity to Pune Airport or Mumbai Pune Expressway Other factors include employee accessibility, possibility of future expansion

and connectivity with the rest of the city. o The key area to invest are :

Hinjewadi Solapur Road to Loni Kalbhor

Residential

o Demand Supply Mismatch

Source: icicihfc.com

o The highest demand is for 2BHK apartments. o Houses in Pune are more spacious and affordable than Mumbai. o Infrastructure is the major driver of purchase decision for residential property. o The key areas to invest are

Pimpri Chinchwad

Future of Real Estate Market Pune The investment in property in Pune will continue to be rewarding

The market will be driven by end users as there will be a higher demand in the

real estate market for residential use than for commercial purpose.

The sole purpose of acquiring new residential property by majority will be self occupancy by first time owners.

The market will witness a slight appreciation after the political stability (elections 2014) in the country. However, the budgets of the end users will remain same.

The interest rate on credit is expected to increase after elections. There will be a scarcity of budget homes this year.

Though there will be a higher demand from 1st time home buyers, the builders

will keep their focus on NRI investors and will gain greater attention whilst participating in International Property Expos.

REITs to get approved this year in October, will help investment in real estate more accessible, long term and income oriented.