Pune’s North West Market

Understanding the Hottest Location for Real Estate Launches

Pune’s North West market, comprising locations like Hinjawadi, Mahalunge, Tathawade, Wakad, Balewadi, and Baner, has emerged as the hottest location for real estate launches in recent years. With a constantly increasing graph of launches and sold inventory, it is crucial for buyers, especially first-time homebuyers, to understand this market and make informed decisions. In this article, we will delve into the factors driving the demand in this region and explore the current trends and potential repercussions.

Connectivity and Accessibility

One of the primary reasons behind the surge in demand for properties in Pune’s North West market is its excellent connectivity. All the locations in this region are well-connected to the Mumbai-Pune-Bangalore highway and the Aundh-Ravet BRTS, providing easy access for residents.

“All these locations are connected to Mumbai-Muney-Bangalore highway and Andh-Ravir BRTS. Because of which, there is easy access for people in all these locations so people like to buy the launches coming here”

However, the increasing popularity of these locations has also led to traffic congestion at various junctions and underpasses. The authorities must focus on developing infrastructure to mitigate these issues and ensure smooth commuting for residents.

Affordability and Demand from Young Professionals

The North West market’s proximity to major IT companies in Hinjawadi has attracted a large number of young professionals working in the service sector. These first-time homebuyers prioritize affordability, seeking properties in the range of 35-50 lakhs.

Something that is affordable for him Because the first time home buyers want something affordable Because they don’t want to take too much risk When their first home is, i.e. The age from 22 to 30 everyone wants to take in our budget in 35 lakh, 40 lakh, 50 lakh because of that people showed their interest in this nearby location which is Hingori and working in its nearby location

Consequently, the past five years have witnessed a rapid launch and sale of compact, affordable houses in locations around Hinjawadi and Hingori. This trend has significantly contributed to the increasing graph of launches and sold inventory in the North West market.

Rising Home Values and Shifting Preferences

Despite the focus on affordability, the average value of homes in the North West market has increased by 40% from 2019 to 2023. The average price of a house has risen from 56-55 lakhs in 2019 to 76-77 lakhs in 2023.

Interestingly, there has been a noticeable shift in the type of launches in this market. In recent years, there has been a growing trend of launching larger apartments, particularly 3BHK units, instead of smaller 1BHK or 2BHK units.

“If you see the record of the last few years So here the launches of the fastest big flat are increasing That is, more than 3BHK are coming in the market Now, in the previous calendar year There are more than 3BHK launches instead of 1BHK launches and the trend that is showing in the coming time, the 2BHK launches will surpass the 3BHK launches”

This shift can be attributed to the application of UDCPR 2020 (Unified Development Control and Promotion Regulation) in newly added locations like Mahalunge and Maan, allowing developers to load more FSI and create more inventory.

Developers’ Perspective and Pricing Strategy

From a developer’s perspective, launching larger apartments offers several advantages. Constructing smaller units entails higher costs for elements like kitchens, sanitary fittings, walls, and finishing work. Moreover, selling smaller units requires finding a larger number of buyers.

On the other hand, buyers of 3BHK units tend to have a higher budget and are willing to pay premium prices. Developers can charge around Rs. 13,000 per square foot for 3BHK units, compared to Rs. 11,000 per square foot for 1BHK units.

“When you make a big flat, the buyer you get is premium And because of that, they can claim the premium prices suppose the average price of 1 BHK is Rs. 11,000 per square feet then if they are making 3 BHK then they can also take Rs. 13,000 per square feet”

Potential Repercussions and Market Dynamics

The increasing launch of 3BHK units in the North West market may lead to several repercussions. Buyers looking for larger apartments in premium locations like Baner or Balewadi may opt for more affordable options in areas like Wakad, Tathawade, Hinjawadi, Mahalunge, or Maan, where they can avail of metro connectivity.

However, the scarcity of smaller, affordable apartments may pose challenges for investors and first-time homebuyers who prefer to start with a lower risk. They may have to explore locations further away from the city center.

“So if people will not get it at affordable prices, then the sale graph there can come down. And when it comes down and becomes 3BHK then there will be a possibility of the rate increasing but a hope will definitely develop in the surrounding locations”

Advice for Buyers

As a buyer, it is crucial to understand your financial capacity and specific requirements before making a purchase decision. Avoid getting swayed by crowd mentality or the fear of missing out (FOMO). Take the time to research and evaluate your options thoroughly.

“What is important for you is that you have 30 lakhs, 40 lakhs, 50 lakhs, 1 crore rupees in which you are going to take loans. So first understand this. What is your need? What do you want to target from this? Which location can be better for you? What kind of developer can be better?”

Remember that there are still numerous land parcels available in locations like Marujji, Punawale, and Tathawade. With the application of UDCPR, these areas are likely to witness the development of high-rise towers and an increased number of inventories in the future.

Role of Authorities

As the North West market continues to grow, it is essential for the authorities to proactively address infrastructure challenges. Developing an efficient metro connectivity, implementing water harvesting measures, and ensuring a reliable water supply from dams to residential locations are crucial steps.

“Along with that, authorities should also be careful about how you develop the infrastructure so that there are no traffic issues. How will you water harvest water? How will you deliver water from dams to residential locations? Tankers which are spread all over contaminated water from borewells how to stop that If authorities are proactive on this then it will be good for Pune real estate and the future”

Conclusion

Pune’s North West market has emerged as a sought-after destination for real estate launches, driven by its connectivity, affordability, and proximity to IT hubs. While the increasing launch of larger apartments offers opportunities for premium buyers, it also presents challenges for investors and first-time homebuyers seeking smaller, affordable units.

As a buyer, it is essential to make informed decisions based on your financial capacity and specific requirements, rather than succumbing to market pressure or FOMO. The authorities must also play a proactive role in developing infrastructure and addressing issues like traffic congestion and water management.

By understanding the dynamics of the North West market and making well-informed choices, buyers can navigate this exciting and evolving real estate landscape successfully.