Pune has seen rapid transformation in real estate development over the past decade. The growing demand for housing from buyers and investors has led to tremendous growth. Information technology (IT), manufacturing and education are driving this demand.
A major chunk of residential real estate transactions are now in the emerging peripheral micro-markets. The attractive pricing of real estate projects in these areas is a major draw, and Chakan in the Pimpri-Chinchwad Municipal Corporation in West Pune is one of the fastest-growing among these.
There are many reasons why Chakan has been striking a chord with people looking for reasonably-priced homes . The industrial growth in and around this micro-market, combined with significant influence from the neighbouring IT hub of Hinjewadi, has spurred the demand for affordable housing here.
The 25-km Chakan-Talegaon belt is a Apecial Economic Zone (SEZ) supported by Maharashtra Industrial Development Corporation. It is home to some of the leading automobile production plants in India. Around 750 large and small scale industries are operational in this burgeoning industrial market. The sustained demand for budget homes emanating from the workforces can therefore be imagined.
The IT hub of Hinjewadi, a major growth driver for real estate development in the western region of Pune, is another residential demand generator in Chakan. Emerging peripheral micro-markets such as Chakan and Talegaon present better prospects for budget-constrained home buyers.
This demand, coupled with the availability of land in the Chakan-Talegaon belt, has been attracting developers' interest. Many prominent and local builders such as Naiknavare Developers, Maruti Group, and Eiffel Group are active or entering the region with a wide spectrum of housing options.
Chakan also receives significant spill-over demand for homes from the closely situated Khed SEZ by the Kalyani Group. With property prices ranging between Rs 2,300 and Rs 3,300 a sq ft, the major demand for homes arises from end-users who are mostly first-time home buyers. Many also look at this belt for second homes or as rent-generating assets - the attractive prices have worked well in strengthening investor sentiment on the region. The many infrastructure projects planned for the region, such as the proposed international airport and the ring road connecting Chakan to the other parts of Pune, will further help boost its real estate profile. Riding high on factors such as availability of space, affordable property prices and proximity of industrial establishments, Chakan is definitely a very interesting investment proposition over the mid to long term.
The writer is managing director - Pune, JLL India
