Corridor of growth Corridor Description and Rating Areas Included: Undri, Pisoli, Handewadi and Mohammedwadi UNDRI - PISOLI Fig 1: Map of the corridor
02 About the Corridor Introduction The Undri Corridor covers the southern part of Pune and consists of upcoming localities like Undri, Pisoli, Handewadi and Mohammedwadi. This is primarily a residential corridor with associated support retail and infrastructure developments. South Pune, comprising of localities like Wanowrie, has been a residential hub given its proximity to the Central Business District (CBD) of Pune and Pune Cantonment. In due course of time, the development moved to Kondhwa and along and off the NIBM Road. However, these localities have become saturated. The next phase of development has moved further south covering new localities which fall under this corridor. Apart from being an extension of the existing residential areas, there are other newer demand drivers for this part of Pune. There is considerable IT/ITES development within a 10-km radius of the corridor at Magarpatta City in Hadapsar and SP Infocity at Phursungi. The capital value in the corridor is less as compared to other localities between the corridor and these IT/ITES office space clusters. Residential development in the corridor provides relatively affordable options to home buyers. This is also an affordable destination for consumers working in the Camp/CBD area of Pune who find Kondhwa, Wanowrie and NIBM Road expensive. Development in the corridor is along and off the existing roads. The Katraj-Undri-Hadapsar Bypass Road is a major development axis which has projects on either side. Development in Undri and Mohammedwadi localities fall mainly along this road. Another area in the corridor with large scale development is the Handewadi Road which lies to the east of the Katraj-Undri-Hadapsar Bypass Road. This road starts from the intersection of the Katraj Bypass Road in the south and connects with Hadapsar Road in the north. Here again, there are many projects on either side of the road. Mohammedwadi and part of Undri are amongst the 23 villages lying on the outskirts of Pune which have already been absorbed into the Pune Municipal Corporation (PMC) limits. The Master Plan for Mohammedwadi covers most of the development along the Handewadi Road as well. However, Pisoli and parts of Undri are amongst the 34 villages which have been proposed for absorption under the PMC limits. The timeline for this merger is not clear at present. Present Scenario The corridor offers properties in the price range of Rs 4,200-5,200 per sq ft in the re-sale market. The average rate in the market is Rs 4,800 per sq ft. Mohammedwadi is the most expensive locality in the corridor followed by Undri, Handewadi and Pisoli. The 2BHK is the dominant format amongst the multi-storey apartments and forms 65% of the re-sale supply. In terms of overall acquisition cost, more than 50% options are in the Rs 40-60 lakh segment followed by smaller format options in the Rs 20-40 lakh price bracket. The average 2BHK saleable area is 1100 sq ft while that of a 3BHK is 1530 sq ft. The long term price trend (4-5 years) in the area has been in the 25%-30% range. However, it must be appreciated that it was on a smaller base price. In line with the general market scenario, the price trend over the last two years has been subdued. Price appreciation has been in the 9%-12% range in the localities of the corridor. The corridor has projects by various Tier-1 and Tier-2 developers. These vary in terms of land area as well as number of units per project. Infrastructure Infrastructure is still evolving in the corridor. Projects which are close to
03 NIBM Road have access to relatively better support infrastructure as compared to others. In most of the corridor, support retail is in the form of small shops situated along the road or in existing village habitations. To access more organized retail, Kondhwa is the nearest destination. These are pre-existing roads and while the Master Plan calls for their widening, the same has not yet happened. Localities in the corridor at times suffer from lack of proper water supply. There are two reasons for the same. One, many areas of the corridor are not in the PMC limits. Hence, these projects rely on bore-well water or private tankers. The other is that due to the undulating terrain, pressure in the water pipes might not be sufficient to reach some projects. Some areas in a few localities of the corridor which fall under PMC limits and for which the Master Plan is available, fall under lowwater availability zone. Therefore, consumers are advised to check on water availability in the project(s) being considered. There are many schools in the corridor which are within comfortable distance of the projects. For healthcare needs, options are available in Kondhwa and other areas to its north. Outlook The corridor offers good residential options in different formats, price ranges and builder/project preferences. It offers good connectivity from other areas of Pune as well as with main highways like the Pune-Mumbai Highway, Pune-Bangalore Highway and Pune-Solapur Highway. Some areas of the corridor might lack in support infrastructure at present but these are likely to get addressed once they are merged with the PMC. It is important to keep some buffer timeline for this to happen. It is an ideal destination for buyers looking for relatively affordable options which are not very far from the CBD of Pune as well the IT/ ITES office clusters in Hadapsar, Magarpatta City and Phursungi. Overall Connectivity Social Infrastructure Security/Water Properties available in the corridor The corridor offers options across a wide budget bracket. While the capital value (Rs/sq ft) varies within the corridor, difference between the highest capital values at Mohammedwadi and lowest at Pisoli is 20%, accounting for a small percentage of this budget variation. This is because most of the development is taking place in one locality within the corridor (Undri). Bulk of the supply is in the Rs 40-60 lakh segment because most of the properties are in the 2BHK format. Size of most of these 2BHK options vary from 1000-1200 sq ft. Similarly, in the Rs 60-80 lakh budget, most of the supply is in the 3BHK segment. While the size of a 3BHK varies from Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration
04 Table 1: Sizes and prices of flats available for various room configurations Sales Price Covered Area ( Lacs) (Sq.ft) 1 BHK 21-35 580-650 2 BHK 30-70 900-1200 3 BHK 50-95 1300-1700 4 BHK and Above 100-250 1800-4000 1200-2500 sq ft, most of the options are in 1200-1600 sq ft range. Majority of options in Rs 20-40 lakh are 1BHK units followed by 2BHK units. Mohammedwadi with relatively high capital values has projects in the Rs 60-80 lakh and Rs 80 lakh-rs 1 crore segment. Pisoli, on the lower end, has supply in the Rs 20-40 lakh and Rs 40-80 lakh price bracket. Undri has projects in all the budget segments from Rs 20-40 lakh to more than Rs 1 crore. Most of the options in the corridor are in the ready-to-move-in state as after a flurry of launches a couple of years back, new launches declined and developers concentrated on completing the existing projects. Best sectors to invest in a home Based on rental demand in sectors Fig 5: Top localities by consumer for renting a house Undri is the most preferred locality by consumers for renting a house in the corridor. This is followed by Pisoli. The preference for Undri can be explained on two counts. First, it is the center of development in the corridor and hence, offers maximum number of options to consumers. Second, the location of the projects. Most of the projects in this locality are situated either on the Hadapsar-Undri-Katraj Road or the Based on home buying demand in sectors Undrigaon Link Road. This puts them in proximity to existing residential areas and support infrastructure along the NIBM Road. Due to this, the corridor is considererd as an investment destination. Fig 6: Top localities by consumer for buying a house
05 Undri is again the most preferred locality by consumers by a wide margin when it comes to buying a house. Prime reasons are the wide variety of options available in the locality and the location of the project. Development in Undri is an extension of the existing development along the NIBM Road. This gives a sense of continuity to Undri as a location and it does not feel isolated. It also has options across a wide budget range from Rs 20-40 lakh to more than Rs 1 crore. This covers different BHK formats from 1BHK to 4+BHK units and sizes from 645 sq ft to over 3,000 sq ft. Best bedroom configurations to buy Preferred buying and renting options Table 2: Demand distribution for buying and renting Buying Renting Total (BHKs) Total (BHKs) 1 BHK 16% 21% 2 BHK 66% 58% 3 BHK 18% 20% 4 BHK and Above 0% 1% Both in terms of rent and house purchase perspective, 2BHK is the dominant segment. It has more than 50% share of consumer preference as rent or purchase options. About 55% of consumer preference in the 2BHK segment is in the Rs 40-60 lakh segment followed by the Rs 20-40 lakh bracket with 49% share. More than 70% of 2BHK availability is in the 900-1200 sq ft range. Consumers with higher budgets prefer the Rs 60-80 lakh range in the 3BHK formats. Though, there is supply and demand of 3BHK options in the Rs 40-60 lakh segment as well. Units of 1BHK dominate consumer preference in the Rs 20-40 lakh price bracket. Price changes and future prospects Historic Price movement Table 3: Historical Price changes 6 monthly change Yearly change -2% -1% Undri-Pisoli corridor has seen considerable development activity over last few years as many projects were launched and lot of supply was added to the corridor. Slow market condition coupled with oversupply has meant that the price level in the corridor across localities has been stagnant or even seen a drop. Whatever price increment observed earlier was marginal and even this could not be sustained. The number of new launches has come down and the unsold inventory is getting cleared. But this requires price level to hold as any significant increase in price will drive away the demand. The price level is likely to remain in a narrow range in short to medium term. Fig 7: Historical Price changes of corridor
06 Price movement for top localities by Consumer Preference Individual price change for top localities by consumer preference in the corridor reflects the overall scenario in the corridor. Two out of four localities have seen price drop while the price increment in other two is negligible. All the localities in the corridor have historically seen a big increase in rate (Rs/sq ft) to reach at the present level. However, given the market scenario, large unsold inventory and current high rate (Rs/sq ft) for each locality, further increment is going to be challenge. The drop in prices is happening because investors in resale segment who want to exit are offering discounts on the prevailing rates. Fig 8: Price changes in top localities by consumer demand Infrastructure Updates Enhanced Security: A Police Chowkey has been opened in Undri which will cover Undri and its surrounding localities like Pisoli, and Mohammedwadi. This police Chowkey will be responsible for a stretch of 8 km with a Master Plan Mohammedwadi, most of Handewadi and part of Undri fall under the Pune Municipal Corporation (PMC) limits. Most of Undri and whole of Pisoli are outside the PMC limits. population 1.10 lakh residents. Pune Municipal Corporation Limit Expansion: 34 villages which includes part of Undri not already included in PMC limit and village of These villages are amongst the 34 villages which have been identified for inclusion in the PMC limits, but timelines for this inclusion is not clear at present. Most of the land under the Pisoli are to be added to PMC limit. This will help to improve the infrastructure in the area. However, the timeline for its implementation is not clear at present. zone is earmarked for residential development. Some areas under Mohammedwadi Master Plan have been marked as low water availability zone. Consumers need to check IN NEWS Why Pune s Undri is a good investment option? Undri is one such area in the city that is developing rapidly. The locality offers excellent social infrastructure and easy connectivity. The area has connectivity to Pune s Central Business District (CBD) and is close to the eastern IT corridor. The Mumbai-Bengaluru highway is also connected to the locality. One can easily find IT professionals and salaried class people looking for both rent and buy here. Due to its proximity to the IT and ITeS hubs of Magarpatta and SP Infocity, Undri is a good option for investment. The thriving high street shopping area of MG Road is also attracting buyers. Source: Magicbricks Bureau NIBM Annexe is attracting home buyers NIBM Annexe is grabing home buyer s attention. There is a wide gamut of housing options in the NIBM Annexe that makes the area well-liked by both the end-users and investors. The area is well connected through NIBM Road to other premium areas such as Koregaon Park, Kalyani Nagar, Kharadi and Swargate. The public transport system is quite good. In fact, the basic facilities such as water and electricity come under the purview of Pimpri-Chinchwad Municipal Corporation limits. Source: Magicbricks Bureau Why Undri attracts Pune s home buyers Undri s superior location advantages have worked well in its favour. It is conveniently close to Pune Camp, and is easily accessible from various other key centers in Pune. Road-widening initiatives and other infrastructure enhancements are constantly adding to the value of this location on Pune s real estate map. Being close to NIBM, Salunke Vihar and Wanowrie, Undri provides easy access to shopping, entertainment and healthcare, but the biggest advantage is that the locality is conveniently close to the IT and ITeS. Source: Magicbricks Bureau
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