Pros And Cons Of Buying Property In Pune
The real estate market in Pune has developed exponentially over the last two decades and the city has witnessed an intense transformation due to an increase in the employment and business opportunities, helping the city grow rapidly in terms of its spatial extent, economic activities and demography. The IT industry has brought about a linear co-relation and growth to the real estate industry. While the Mumbai market has turned out to be relatively exorbitant and slow-moving, Pune in comparison has been developing constantly across the peripheral fringes. It has seen consistent appreciation with specific micro-geographies exceeding the average capital value appreciation rate due to the influx of new IT offices/parks, infrastructural growth, and the proximity of commercial places to Pune’s central business district (CBD).
The improvement in the market sentiment is also due to the investments being made in the construction of metro rail links, new airport terminal and ring road. Additionally, new flyovers and roads like the city’s first outer ring road, New Kharadi - Shivane Riverside Road are being built to enhance connectivity within the city and also with other cities. The municipal corporation has approved plans to create new IT parks in Aundh, Baner, Balewadi and Kharadi, to increase the employment opportunities in the city. The city is a host to some of the most renowned names in the commercial & IT sector like EON, Tech Park One, Giga Space, Weikfield IT Park, Raheja Commerce zone, RMZ Westend, Kumar Cerebrum, and Talawade IT Park, educational institutes and the presence of some of the best brands in healthcare. The city is not only an education hub but also adds to its lively young atmosphere with some popular social infrastructure that define the quality living like primary healthcare hospitals, malls and multiplexes, hotels and restaurants, recreational facilities, theatres etc.
Overall, there are several advantages being seen and understood to investment in Pune
- Excellent Planning - One of the better planned cities, especially the suburban fringes of Kharadi
- Infrastructure is excellent - Well laid, broad roads with tracks for parking and the presence of multiple arterial roads makes connectivity easier
- An Abundance Of Nature Vs A Concrete Layer - More expansive greenery within housing catchments and communities
- Better Social Infrastructure - Better planning has ensured the presence of adequate entertainment options as well as a clutch of restaurants serving an entire assortment of cuisines
- Pricing Advantage - The weighted average price per Sq. Ft. is definitely lower than the other metropolitan cities in the country
- Higher Return On Investment - This is not a saturated market and the periphery is growing in concentric circles with adequate scope to expand supply and ensure migration from the core and central spaces to the suburban areas.
- Better Quality Of Life - The larger quantum of inventory available in the immediate catchment of prominent IT parks that allow for lesser time to be spent in traffic on the roads and more time with family.
- Decluttered - Does not have densely populated areas cluttering specific micro-geographies within a city unlike other metropolitan cities
- Social Heterogeneity - Pune is increasingly beginning to represent a greater cultural heterogeneity. The city is characterized by a diverse population that has inhabited it. There is also a larger variety of food offering consequently made available. Needless to add, different living conditions, religious beliefs, cultural outlook, customs and traditions characterize this city.
- Social Character - Social Character & Identity better characterize many micro-geographies in Pune like Kothrud, the peth areas, Kharadi, Hadapsar and Magarpatta and Bavdhan. Further, the integration of what would have been a rural community with the new found urban community. Pune is being increasingly characterized by multiple business migration that allows for multiple occupations growing rapidly.
There are also certain constraints with a view to buying property in Pune
- Materialism - Pune is being increasingly characterized by the urban syndrome of wealth and material possessions. There is increased judgement not by what one is but by what one has. Status symbols in the form of financial assets, salaries, expensive residential neighbourhoods count a lot for the urbanites. This could allow for the development of ghettos.
- Individualism - Greater importance is attached to individual welfare and happiness. There is a lack of collective spirit and welfare and people hesitate to think or act for the good of others.
- Rationality - In urban communities in Pune, relationships are governed, for the most part, by the consideration of gain or loss. Relationships exist on a contractual basis.
- Anonymity – Borrowing from Bogardus, “Urban groups have a reputation for namelessness.” By simple virtue of size and population, the urban community cannot be a primary group. This syndrome gets witnessed in large apartment complexes. Nobody knows anybody and nobody cares for anybody. This urban syndrome is anti-society.
- Social Role Conflict – Extreme Occupational Specialization:
The urban community is characterized by norm and social role conflict. Factors such as the size, density and heterogeneity of the population, extreme occupational specialisation which characterises Pune with the predominance of IT and Auto.
Conclusively, there are several factors that are driving people from over the country as well as the world to making investments in Pune. The city has created outstanding prospects for investors in the residential segment of real estate. The persistent inward migration of professionals to the city has led to the transformation of the city into a hub of IT, Automation and Manufacturing. Known as the cultural capital of Maharashtra, adding to its existing culture, Pune is witnessing vibrant growth from various foreign cultures. What makes the city a happening hub is the ample amount of land availability, cool climate and young working professionals which is giving rise to its own identity as a promising destination in terms of livelihood. The Smart City model of development, being supported by government bodies in the planning of residential projects are economically, socially and environmentally sustainable.
The article is authored by Bennett Fernandes, Marketing and Brand Head of Duville Estates.