Offers affordability with good connectivity

Pune's rapid growth as a city is constantly pushing the envelope for real estate development. Suburbs considered 'upcoming' less than two years ago are now established destinations, with increased property price appreciation creating a challenge for budget home seekers. One of the latest entrants of hot new budget home, destinations, Shikrapur in East Pune is one of the areas that still offer affordability with good connectivity.

In the past, Pune's eastern corridor along the Nagar Road delivered many new locations that became hotbeds of real estate development activity within very short periods. Like Shikrapur, Kharadi and Wagholi were seen as little more than remote industrial regions. Today, these areas have undergone a massive image makeover because of the frenetic economic development along the Nagar Road belt. After the rapid saturation and price escalation seen at Wagholi, affordable home buyers have now turned their sights and hopes on nearby Shikrapur.

Projecting no more than five years into the future, we can see Shikrapur's real estate market seeing the kind of price escalation that have already placed Wagholi beyond the reach of the lower income groups. Land prices will rise, available land parcels will decrease and we will witness the birth of yet another middle-class housing destination, with flats costing Rs 35-50 lakh and above. However, as of today, Shikrapur still offers scope for affordable housing to meet the requirements of its blue-collar industrial workforce.

Demand for homes in Shikrapur is primarily driven by the blue-collared workforce employed in the Shikrapur-Chakan industrial belt. However, Shikrapur is also located only 20 minutes away from Kharadi, and close to the airport and Nagar Road's rapidly expanding retail operations. In addition to the demand from industrial workers, Shikrapur is also a location of natural choice for modestly-salaried people employed at the airport and the various malls along Nagar Road.

With public transport always an important criterion for LIG home buyers, the fact that Pune Railway station is a mere 40 minutes' commute away adds to Shikrapur's advantages.

Infrastructure initiatives that will benefit Shikrapur include the proposed Ring Road, a four-lane flyover linking Shikrapur to Wagholi, and several additional roads that will improve connectivity to other key locations in Pune.

So far, the growing demand for affordable homes in Shikrapur has largely been addressed by small one-off projects, with limited facilities and modern amenities. Property rates range are Rs 2,800-4,500/sq.ft, depending on the location, completion status and available facilities and amenities.

The writer is managing director - Pune, JLL India