Times of India - March, 2005

The past few years have seen Pune's prime locations like Kalyani Nagar, Koregaon Park and Boat Club Road developing into reliable investment avenues for residential property. The property market has been gaining momentum in terms of volumes and prices and the trend is expected to continue this year as well. Many new locations are also set to witness a growth in construction activity and transactions.

Typically, an appreciation in property prices is considered a positive sign. However, the rise witnessed in Pune is even better, because it has happened gradually.

Most Punekars agree that the rise in prices is a reflection of the improved construction quality and amenities provided in the new projects that have come up in Pune during this period, a view echoed by developers and property consultants. The ‘walk to work' concept has also fuelled a residential demand at locations, which would otherwise have mostly witnessed commercial development.

Rohit Gera, director, Gera Developers, and a managing committee member of the Promoters and Builders Association of Pune (PBAP), explains that Viman Nagar, Aundh, Kothrud and Kalyani Nagar have seen a steady rise in the property rates, because of the civic infrastructure and good quality construction coming up in the area.

The IT development has added to the demand of the area. Another factor attracting buyers is the proximity of these areas to the Mumbai-Pune Expressway. The area has come up within a span of seven years, there are also no slums and there is lots of greenery, which people like. Now it is termed as a self-sufficient suburb because of which many people are opting for this area," he points out.

Baner and Bavdhan on the western side of Pune and Kharadi on the eastern side will be the areas of future, he emphasises. While Baner and Bavdhan would benefit from the IT boom and good construction, Kharadi will have the twin advantage of industrial development taking place along with an IT complex coming up.

Ashok Kumar, Principal, Cresa Partners, explains, "The last few years have seen a marked improvement in the quality of residential projects, which is to a large extent the result of the IT and ITES sector companies setting up offices in the city. If the influx continues at this pace, the demand for premium residential options will definitely increase even higher so there is scope for capital appreciation in future," he says.