Hinjewadi, Pune: IT hubs drive demand for residential properties
We look at the factors fuelling the demand for residential properties in Pune’s Hinjewadi and whether it makes sense for buyers to invest here
Pune’s real estate market is expanding towards its emerging economic hubs. This includes Hinjewadi, which has properties for all types of home buyers. Owing to the diversity of home buyers in Hinjewadi, who come from different economic categories and working segments, even when there is a slowdown in one real estate segment, it is compensated by growth in other segments. Hence, the real estate market in Hinjewadi has witnessed consistent growth. If you are planning to buy a house in Hinjewadi as an end-user or as an investor, it would be crucial to understand the demographic structure of buyers and growth trend in this market.
Properties in Hinjewadi
“Hinjewadi is one of the major IT/ITeS hubs of Pune and with an estimated stock of close to 17 million sq ft, it provides employment to more than two lakh people. With the IT/ITeS sector being the major employer, the home buyers here are typically those working in these companies and are people in the range of 30 to 40 years. Apart from IT/ITeS, there is a significant amount of migrant population working across sectors like biotechnology, manufacturing, pharmaceuticals and automobiles,” says Divya Seth Maggu, director, valuation and advisory (mid-India) at Colliers International. People who move to Hinjewadi, initially tend to stay on rent. However, those who foresee a continuance in the city and find properties that are pricing to their liking, opt for home purchases.
Hinjewadi real estate overview
Hinjewadi is located close to the National Highway 4 (NH4) in the western suburbs of Pune. Being the focal point of the IT/ITeS revolution in Pune, it has a well-developed physical infrastructure, offering excellent connectivity to other parts of the city, as well as to Mumbai. “Apart from the 300+ companies already operating from Hinjewadi, there is an upcoming supply of 4.5 million sq ft of office space over the next few years, in and around Hinjewadi, thus, providing good employment opportunities for professionals,” adds Maggu. Pune airport is located at a distance of about 20 kms, while the nearest railway stations are Pimpri and Pune Junction at 11 kms and 21 kms, respectively.
“The metro rail work is going on in full throttle and once Line-3 starts, there will be direct connectivity from Hinjewadi to Shivajinagar. It will provide pollution-free and traffic-free connectivity to Pune city. Other major infrastructure developments include the high capacity mass transit route corridor, bypasses on the Mumbai-Pune Expressway and Pune-Bengaluru Highway, the proposed Pune ring road, etc. Hinjewadi has all the necessary civic amenities for people living here. International schools, good hospitals, shopping mall, multiplexes and recreational facilities are also available,” explains Raj Shah, director of the Namrata Group.
Hinjewadi real estate price trends
|Number of units launched||1,661||1,309||993||4,967||2,494||6,090||4,510|
|Number of units sold||2,101||1,281||1,202||1,805||2,535||4,375||4,258|
|Weighted average price on year end (Rs per sq ft)||4,742||4,987||4,944||4,894||4,845||5,186||5,282|
Source: Proptiger DataLabs, December 2019
The difference between the number of units launched and the number of units sold, has narrowed down in 2019. Property prices have remained stable in the last five years and at the same time, sales have increased gradually, indicating consistent growth in demand. Any drop in supply, may result in a spike in property rates in the near future.
Why is Hinjewadi a good investment
Lifestyle: From social to civic amenities, Hinjewadi is able to cater to all needs of a family. Proximity to work, educational institutes, hospitals and entertainment zones, add to the attractiveness of the micro-market.
Rental demand: The continuous rise in demand for commercial properties, has also led to the influx of people to this region, thereby, boosting the demand for properties for rent in Hinjewadi.
Growth prospects: Hinjewadi already has three operational phases with a proposed phase-4, as well. As the office market grows and generates more employment opportunities, it will lead to more migration and demand for homes. Consequently, capital values of good properties are likely to appreciate.
Overall, the saturation of the core areas of Pune, along with growing employment opportunities in the region, have been the main drivers for the demand for residential housing in Hinjewadi.