Prashant Thakur, Head – Research, ANAROCK Property Consultants
Pune, once known as a ‘pensioners paradise’, has transformed significantly over the past few years.
The booming IT/ITeS and manufacturing sectors led to a rapid makeover of the city, and working professionals from all parts of the country started flocking to Pune. The concentric development pattern of the city helped expansion in the suburbs and peripheral regions.
Undri and Ambegaon, located in South Pune, are in the process of becoming Pune’s next vibrant property boom areas over the next few years. More and more of Pune’s homebuyers now seek out residential destinations which still offer the unspoiled natural splendour and healthy environment which Pune was once famous for.
Such areas are increasingly hard to find in the face of the rampant real estate construction drive all over the city. The availability of large, contiguous land parcels for development in Undri and Ambegaon is another big advantage for the area, which for this reason lends itself particularly well to sizeable township projects.
This region’s history as far as real estate development is concerned is not very long. Development is largely happening on land parcels that landowners and developers have been holding for several years while they awaited the inevitable development push which would shift Pune homebuyer demand into this direction.
Between 2013 to 2017, only about 14,000 units were launched in Undri and Ambegaon, which is a mere 5-6% of overall supply infusion in Pune during the same period. This indicates that the region is in the early stages of development, which makes it an eminently fertile real estate investment destination as well.
These two markets are predominantly led by strong local developers who appropriated the first-mover advantage. Amit Enterprises Housing Ltd. is one of the major developers who are very active in the Undri-Ambegaon region. Their projects Bloomfield and Astonia Royale (Ambegaon) and Colori and Astonia Classic (located at Undri) have garnered considerable success as they cater to the specific demand groups existing in the region.
In addition, local developers such as Shree Venkatesh Buildcon, Tara Constructions and LushlifeDevelopers also have projects for various buyer categories. The success rates of all projects here have largely been a function of how well the developers have understood these markets and the dynamics that drive them.
Undri and Ambegaon’s real estate development potential is similar to that of other rapidly-upcoming residential property development precincts such as Bhugaon, Bavdhan, Kondhwa, Wagholi and Katraj.
Ambegaon is close to Katraj and therefore enjoys bracing hill views, making it an ideal destination for homebuyers seeking to escape the central city area chaos. It is advantageously connected to the inner city by road and is also close to the Mumbai-Pune Expressway, as well as the very popular NBN Sinhagad Technical Institute and various hospitals and schools.
Property price appreciation has been significant in Ambegaon and Undri as compared to many other locations, varying according to the exact location, developer’s profile and amenities offered in the project.
In locations such as Baner, Wakad, Hinjewadi and other growth areas of Pune, investor interest has predominantly come from neighbouring Mumbai and prices have risen unnaturally as a result.
In Undri and Ambegaon, thanks to their unique location, investors have also been coming in from Sangli, Miraj, Kolhapur, Satara and Shirval.
Property rates in Ambegaon currently range between 4,500 – 5,800/sq.ft. and in Undri between 4,300 – 5,200/sq.ft, depending on the type of projects, included amenities and specific location along main roads.