The impact of growing infrastructure in Pune is visible yet again. This time, it’s Baner Road and Balewadi in the East of Pune, which have been positively impacted by the growth of IT companies, retail and educational institutes.
Owing to the growing infrastructure towards and beyond these localities, the rental values have witnessed a leap of almost 21-31 per cent in the last two years, reports the data with Magicbricks.
While the rental values are an indicative of the increasing number of end users in this area, the location has also been serving healthily to its investors. The data records a hike of almost 27-30 per cent in the property values of the two locations within a span of two years.
Pune has grown from a pensioners’ destination to an industrial and educational city. As some of the world’s largest industries started setting up their base here, demand for housing went up manifolds.
“Industry requires manpower, and manpower requires homes. Inhabited homes require retail shopping and entertainment facilities. With the demand for commercial and residential space growing hand in hand, several outlying villages along the major expressways and highways were added to Pune’s territory, including Baner and Balewadi,” says Mohammed Aslam, head – Pune, Jones Lang LaSalle India.
Baner Road and Balewadi started growing on the back of their proximity to the Hinjewadi IT hub. Today, the two locations have their own IT base to boast of.
“Not only do the IT companies in Hinjewadi form the major source of home buyers for Baner and Balewadi; several other companies have set their bases in the two locations too. Cummins IT Park in Balewadi is one of the biggest in Asia. Currently, there are several other developments going-on, including the construction of malls and educational institutes. Pune University, located at a distance of 5km from Baner, forms a major source of rental demand,” says Suraj Dhumal of Sparkle Properties, a city-based realtor.
Another factor that adds to the popularity of Baner and Balewadi as rental destinations is the availability of homes at affordable values. The rental values in the two locations range from Rs 13,000-16,000 per month for a 1000-sq-ft apartment. Aundh, located hardly four-five kilometer away offers a similar property at nothing less than Rs 17,000 per month.
Given the amount of infrastructure development happening around, Baner and Balewadi are not very far from the day when the prices there will compete with established locations like Aundh. It’s for the investors to take the right cue and make the most out of the situation.