In this article, we bring you the list of 5 affordable localities in Pune that offer low-cost residential options to homebuyers. With developing infrastructure and connectivity prospects, these localities are bound to garner huge realty traction in the next 3-5 years.
Real estate being a price-sensitive business, demand for affordable housing is always high. Pune, in particular, gets most of its housing demand from homebuyers belonging to the city’s middle class and the working migrant population. Such a section of home buyers is continuously looking for pocket friendly budgeted homes. According to one of the prominent city developer, “End users are looking for mid-sized homes within the city limits that comprise good amenities and fall in a budget range of Rs 29-50 lakh. Many reputed developers are offering homes in this budget range with an all-inclusive package that taps the end users demand.”
From an investment perspective, the profitable opportunities are currently mid-income homes in well-connected affordable localities in Pune. These properties are primarily configured as 1 BHK and 2 BHK units in popular areas such as Wagholi, Punavale-Ravet-Kiwale, Bhugaon, the Undri-Pisoli belt and Hadapsar. These areas are the future growth corridors, which are experiencing consistent development on all fronts, and prices still meet the buyers’ pockets.
Defining affordability in Pune’s realty market
The concept of an affordable locality in Pune has changed with time. Earlier, a 1 BHK apartment costing around Rs 15-20 lakh and a 2 BHK apartment ranging between Rs 25 lakh and Rs 30 lakh were considered affordable. But after the pandemic, the increasing land and construction costs and inflation have changed this definition. In Pune affordable housing definition has been revised. Now a 1 BHK apartment costing between Rs 30 lakh and Rs 40 lakh and a 2 BHK property ranging from Rs 40 lakh to Rs 50 lakh are considered as cost-effective now. Likewise, a 3 BHK unit costing between Rs 60 lakh and Rs 80 lakh falls under the affordable category.
Average values of residential apartments
|1 BHK units
|2 BHK units
|3 BHK units
|Rs 28-35 lakh
|Rs 42-48 lakh
|Rs 50 lakh onwards
|Rs 34-45 lakh
|Rs 50-65 lakh
|Rs 70 onwards
|Rs 29-45 lakh
|Rs 42-60 lakh
|Rs 65-75 lakh
|Rs 29-35 lakh
|Rs 40-52 lakh
|Rs 55-84 lakh
|Rs 28-34 lakh
|Rs 49-57 lakh
|Rs 65-83 lakh
Popular affordable localities in Pune
The housing demand in the north-eastern sub-market of Pune is primarily driven by IT/ ITeS developments in Viman Nagar, Kalyani Nagar, Nagar Road/ Off Nagar Road and Kharadi. Numerous IT parks, such as Giga Space, Eon, Weikfield IT Park and Tech Park One, in Kalyani Nagar are home to major global IT and Business Process Outsourcing (BPO) firms.
The presence of these offices boosts employment opportunities, creating high residential demand. In addition, the Wagholi sub-market benefits from the presence of important physical and social infrastructure comprising proximity to the Hadapsar Railway Station and airport, retail developments, prominent hospitality and renowned educational institutes.
Wagholi has developed as a most sought-after destination in the last five years. Property prices are more competitive here compared to other areas, such as Nagar Road, Viman Nagar, Kharadi, and Kalyani Nagar. In addition, the availability of land here at relatively low prices makes Wagholi an affordable realty hub. While the average capital values in Wagholi stand at Rs 5,200 per sq ft, the same hover around Rs 3,500 per sq ft -Rs 4,500 per sq ft for Bakori. Additionally, the rental cost for 1 BHK and 2 BHK units varies between Rs 8,800 and Rs 13,100 per month for Wagholi and Rs 5,000-Rs 7,500 per month for Bakori.
The investment activity in Bhugaon pocket and neighbouring Pirangaut Road has increased significantly in the last two years. According to Sanjay Bajaj, Managing Director, JLL India, “Bhugaon is the south-west corridor of Pune that has witnessed a slew of new housing projects lately and has emerged as a weekend destination due to its proximity to Manas Lake.” Thanks to its smooth connectivity to central Pune and nearness to developed areas like Bhavdhan, Chandini Chowk and Kothrud, it is a preferred residential locality of the city.
The property prices in these areas vary as per the amenities offered. In Bhugaon, the buy rates are Rs 6,800 per sq ft, and in Pirangut, the prices stand at Rs 4,500 per sq ft. The rental cost for 1 BHK and 2 BHK units varies from Rs 12,000 per month to Rs 15,000 per month for Bhugaon and Rs 6,200-Rs 8,500 per month for Pirangut.
Smooth connectivity to some areas like Baner, Aundh and Balewadi to Pune-Mumbai Expressway has led to numerous industrial developments in the past. But as these areas have experienced development close to their maximum capacity, the focus has now shifted to areas like Punavale, Marunji Road, Gahujne and Mamurdi.
Robust infrastructure, availability of land at lower prices and high inventory supply are the demand drivers in these areas. Average property prices in Marunji Road and Mamurdi hover around Rs 6,600 per sq ft and Rs 7,200 per sq ft, respectively. However, in Punavale and Gahunje, the cost of the residential apartments is around Rs 6,100 per sq ft and Rs 6,900 per sq ft, respectively, adds Bajaj.
Magarpatta IT development and industrial units in Hadapsar acted as growth stimulators for the residential sub-market of the Undri-Pisoli corridor. It is the most sought-after location for people working in the Camp areas. Maximum housing demand here is from areas like Kondhwa, Fatima Nagar and Wanowrie. The wish to upgrade to bigger flats at affordable prices pulls buyer interest to these areas.
The average capital values in Pisoli and Undri vary between Rs 4,300 per sq ft and Rs 5,100 per sq ft.
As western Pune has witnessed development, the eastern suburbs lack the residential look and feel. Thus, the major residential demand in this area is only driven by workers in three prominent SEZs, Magarpatta, Amanora Parktown and Fursungi IT Park
Credits : 99Acres