Hinjewadi - Pune micro market report

Hinjewadi The 'Silicon Valley' of Maharashtra

MICRO MARKET REPORT | 2018

HINJEWADI MICRO MARKET REPORT- 2018

OLD PARVATI TEMPLE PUNE

HINJEWADI MICRO MARKET REPORT- 2018

INTRODUCTION Hinjewadi in Pune – is one of the localities that features prominently in any discussion centred around IT Hubs in India. Located on the western fringes of Pune close to the Mumbai-Pune Expressway, it is a classic example of a humble IT village which has metamorphosed into a prominent Cyber City employing 7-8 lakh IT professionals in the matter of just one and a half decade.

A rural area adjoining the localities of Wakad, Baner and Aundh until the establishment of the Rajiv Gandhi IT Park on a sprawling 2800 acres of land, Hinjewadi today is a throbbing locality spread across 3 phases having witnessed investments in excess of USD 1 Billion by the who's who of Global and Indian IT giants in the form of world class campuses.

This has spurred a wide range of infrastructure development activities in this locality in the form of initiatives by local authorities to provide connectivity with other important areas of Pune as well as development of other social infrastructure like homes, schools, colleges, hospitals, malls and other options for leisure and recreation.

Hinjewadi Baner

Pune Wakad

Aundh

HINJEWADI MICRO MARKET REPORT- 2018

KEY FACTORS DRIVING PAST GROWTH HOT SPOT

Before delving deep into these developments let's take a look at some key developments that brought Hinjewadi into prominence as a prime real estate hot spot: Ÿ

Lack of sufficient space in the Central Business Districts of Pune like Senapati Bapat Marg, Deccan, Camp, Pune Railway Station area and Bund Garden Road for future oriented growth.

Ÿ

Establishment of the Rajiv Gandhi IT Park in 2003 with the Maharashtra Industrial Development Corporation building the IT Park in 3 phases.

MIDC also developed high quality road infrastructure, water and sewage treatment plants, fire station etc. apart from the buildings of the IT Park.

Ÿ

Exciting SOPs offered by the Government to woo IT & ITES firms in the form of stamp duty waivers to quickly boost construction of owned and leased office campuses. This led to the setting up of 59 office campuses of leading IT giants like Infosys, Wipro, Cognizant, TCS to name a few.

Ÿ

Setting up of the Hinjewadi Industries Association (HIA) to regulate sustainable development of the area. HIA also overlooked the development of civic infrastructure and security provisions of companies and residents of the locality.

While the impetus to the growth of Hinjewadi was offered largely by the above listed regulatory and institutional factors; like any booming micro-market, Hinjewadi also benefited largely due to its excellent connectivity to other parts of Pune as well as being one of the suburbs nearest to the Mumbai-Pune Expressway.

HINJEWADI MICRO MARKET REPORT- 2018

One of the advantages of Hinjewadi is that not only is it

It is an important station on Pune-Mumbai-Chennai route. The main

very close to the Mumbai-Pune Expressway it is also

railway station – Pune Railway Station, is around 21 km away, while the

well connected to other parts of Pune city through

Pune Airport is around 25 km from Hinjewadi. Hinjewadi enjoys a

roads and flyovers.

robust public transport system. Auto-rickshaws, cabs, buses, and shared auto-rickshaws are the primary mode of transport for covering

Ÿ

Mumbai-Pune Expressway (NH-4) passes through Pune via

short distances. City Buses operated by PMPML (Pune Mahanagar

Hinjewadi. It provides smooth connectivity to Hinjewadi residents

Parivahan Mahamandal Limited) and ply frequently via Hinjewadi.

while traveling either towards Mumbai or Pune or beyond. Ÿ

Maan Road is the main link between Phase I &II of Hinjewadi which further connects to the Mumbai-Pune Expressway via Dange

The main conveyance points in Hinjewadi are Hinjewadi Phase 3, Mahindra Tech 1 and 2, Info Park, Infosys Phase 2, Wipro Circle, Hinjewadi Phase I, Shivaji Chowk and Hinjewadi Chowk. These are the

Chowk. Ÿ

Ÿ

Ÿ

bus stops from where one can onto a city bus for an easy commute.

Hinjewadi Road connects Phase II & III of Hinjewadi and ultimately also merges with the Mumbai-Pune Expressway.

With lakhs professionals travelling to the IT Park at Hinjewadi daily,

Hinjewadi–Karsarsai Road is an arterial road which connect

traffic in Hinjewadi during peak hours is choc a bloc leading to

Hinjewadi Phase II and Karsarsai.

commuters getting late for work. With hawkers and roadside stalls

The nearest railway station to Hinjewadi is Khadki Railway Station,

rampant in the area, heavy traffic jams are also on the rise in this

located at a distance of around 16 km.

locality.

Hinjewadi, Pune

HINJEWADI MICRO MARKET REPORT- 2018

CONNECTIVITY OF HINJEWADI TO OTHER PARTS OF PUNE One of the advantages of Hinjewadi is that not only is it very close to the Mumbai-Pune Expressway it is also well connected to other parts of Pune city through roads and flyovers.

Mumbai-Pune Expressway (NH-4) passes through Pune via Hinjewadi. It provides smooth connectivity to Hinjewadi residents while traveling either towards Mumbai or Pune or beyond.

Maan Road is the main link between Phase I &II of Hinjewadi which further connects to the Mumbai-Pune Expressway via Dange Chowk.

Hinjewadi Road connects Phase II & III of Hinjewadi and ultimately also merges with the Mumbai-Pune Expressway.

Hinjewadi–Karsarsai Road is an arterial road which connect Hinjewadi Phase II and Karsarsai.

The nearest railway station to Hinjewadi is Khadki Railway Station, located at a distance of around 16 km. It is an important station on Pune-MumbaiChennai route.

The main railway station – Pune Railway Station, is around 21 km away, while the Pune Airport is around 25 km from Hinjewadi.

Hinjewadi enjoys a robust public transport system. Auto-rickshaws, cabs, buses, and shared auto-rickshaws are the primary mode of transport for covering short distances. City Buses operated by PMPML (Pune Mahanagar Parivahan Mahamandal Limited) and ply frequently via Hinjewadi.

The main conveyance points in Hinjewadi are Hinjewadi Phase 3, Mahindra Tech 1 and 2, Info Park, Infosys Phase 2, Wipro Circle, Hinjewadi Phase I, Shivaji Chowk and Hinjewadi Chowk. These are the bus stops from where one can onto a city bus for an easy commute.

With lakhs professionals travelling to the IT park at Hinjewadi daily, traffic in Hinjewadi during peak hours is choc a bloc leading to commuters getting late for work. With hawkers and roadside stalls rampant in the area, heavy traffic jams are also on the rise in this locality.

HINJEWADI MICRO MARKET REPORT- 2018

FUTURE INFRASTRUCTURE BOOST TO HINJEWADI Owing to its significance in the growth story of the IT Sector and its emergence as a prominent location, the Government and other Civic bodies of Pune have elaborate plans to decongest the main and arterial roads of Hinjewadi by boosting connectivity through the following initiatives:

A 2 storied flyover is proposed at Dange Chowk to provide flawless connectivity between Hinjewadi and the industrial and manufacturing cluster of Pimpri-Chinchwad.

This flyover will be constructed by Pimpri Chinchwad Municipal Corporation (PCMC).

PCMC has also proposed to construct a 2.5 km long, four lane flyover from Kaspate chowk to Hinjewadi.

The PCMC also plans to build an 8 km long, two lane BRTS corridor to reduce travel time for daily commuters in and around Hinjewadi.

Pune Metropolitan Region Development Authority (PMRDA) has proposed Metro Line 3 from Civil Court via Hinjewadi further onto Megapolis Circle.

HINJEWADI MICRO MARKET REPORT- 2018

AN ECLECTIC MIX OF SOCIAL INFRASTRUCTURE By virtue of being a locality of high importance, Hinjewadi's social infrastructure has developed really well and is dotted with a great mix of schools, colleges, shopping malls, local markets and hospitals.

Hinjewadi boasts of many reputed schools such as Mercedes-Benz International School, Blue Ridge Public School, Navkshitij School, Indira National School and Pawar Public School.

The Balewadi National Games Stadium which offers a plethora of sporting activities is 4-5 km away while the Sentosa Resorts & Water Park is located at a distance of 10 km from Hinjewadi.

Hinjewadi is also home to International Institute of Information Technology (IIIT), Symbiosis Institute of International Business and Alard College of Engineering and Management which impart a range of courses from graduation and beyond.

Xion E Square Mall bang in the heart of Hinjewadi along with Ozone Mall in Aundh at a distance of 11 km and City One Mall located around 12 km away in Pimpri offer multiple avenues for shopping and entertainment for the residents of this locality.

In terms of healthcare, Marunji Hospital is one of the popular hospitals in hinjewadi, Kotbagi Hospital at Aundh is around11 km away and Aditya Birla Memorial Hospital at Thergaon is around 8 km away.

Because of being a vibrant locality, a wide range of reputed hotel chains like Courtyard by Marriott, Fortune Inn Exotica, St. Laurn Business Hotel and Double Tree Hotel by Hilton have properties in and in close proximity to Hinjewadi.

HINJEWADI MICRO MARKET REPORT- 2018

CIVIC INFRASTRUCTURE A MIXED BAG Hinjewadi has abundance of ground water courtesy Marunji Natural Water Reservoir and the Hinjewadi Lake in the vicinity and a good amount of regular rainfall each year during monsoons. However, there is no water supply from the Civic Authorities yet and residents depend entirely upon ground water.

Also, the efforts to put into place proper drainage and sewerage systems has not exactly caught up with the pace of development that this locality has witnessed.

InsufďŹ cient and irregular power supply is also a feature of this locality. Establishment of a large number of corporate parks and ofďŹ ces could be a reason behind the 1-2 hour power outages in Hinjewadi. However, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has proposed a sub-station in Marunji to address the issue of surge in demand for power of Hinjewadi.

HINJEWADI MICRO MARKET REPORT- 2018

PROLIFERATION OF IT PARKS AND COMPANY OFFICES As a leading IT hub of Pune generating revenues in excess of Rs. 30,000 Crores annually, Hinjewadi is dotted with offices of more than 100 Indian and Multinational blue-chip firms. Some notable IT Parks and Corporate offices in the locality are listed below:

Ÿ

Rajiv Gandhi IT Park, , MIDC InfoTech Park, Quadron Business Park along with a few others are the well-known IT parks in Hinjewadi housing the offices of many IT giants.

Ÿ

Prominent companies like TCS, Infosys Technologies, Cognizant Technologies, IBM, Barclays, Accenture Services Limited, Tech Mahindra, Wipro Technologies, KPIT Cummins Infosystems, Synechron Technologies etc. all have their offices across Hinjewadi

Ÿ

Apart from IT/ITES firms, notable pharmaceutical companies like Emcure Pharmaceuticals and Lupin Limited also have their offices in Hinjewadi

HINJEWADI MICRO MARKET REPORT- 2018

HINJEWADI MICRO MARKET REPORT- 2018

DYNAMICS OF RESIDENTIAL POCKETS IN HINJEWADI With the establishment of IT Parks and the setting up of offices by major IT

The price range for multi-storied apartments in Hinjewadi is Rs.

players in Hinjewadi, the residential markets of Hinjewadi also rapidly

4,642/sq.ft to Rs. 6,844/sq.ft with the weighted average price being

started matching up to the influx of working professionals.

about Rs.5,759/sq.ft.

On the back of the Special Township Policy Act, developers with lands

Pre-dominantly, 2 and 3 BHK apartments are the configurations of choice

banks in the area started developing large integrated residential

in Hinjewadi with several projects in advanced stages of construction.

townships. These townships were targeted mainly at the young IT professionals looking to live and work in the same locality. Some

Residential plots and Villas are also on offer but they make up only 14%

observations about the residential market of Hinjewadi are listed below:

of the total inventory of residential options in Hinjewadi.

There are several affordable, mid-range and luxury residential projects by

Of the total residential properties in Hinjewadi, 37% are new launches,

developers like Paranjape Scheme, Kolte Patil, Vascon, Kumar, Xrbia,

41% are under construction and the remaining 22% are ready to move in.

Megapolis, Vilas Javdekar, Godrej Properties and others.

HINJEWADI MICRO MARKET REPORT- 2018

UNIT SIZES AND BUDGETS

Hinjewadi as a locality has homes for offer across the entire spectrum. The below

1 BHK

table gives a snapshot of the sizes and budget range starting from 1 BHK all the way to 5 BHK apartments:

350 - 850 Sq. Ft. RS. 19.74 - Rs. 46.06 Lakhs 9219

2 BHK 6448 5759

Average Prices in nearby areas

600 - 1400 Sq. Ft. RS. 33.97 - Rs. 79.26 Lakhs

7299

3 BHK 840 - 2070 Sq. Ft. RS. 51.72 L - Rs. 1.20 Cr.

4 BHK 2007 - 2500 Sq. Ft. RS. 84 L - Rs.1.96 Cr.

Hinjewadi

Wakad

Baner

Aundh

*Average price per sq.ft

Compared to adjoining areas like Wakad, property prices at

5 BHK 3000 - 3265 Sq. Ft. RS. 1.20 Cr. - Rs. 2.80 Cr

Hinjewadi are 15-16% lower and around 22-25% lower compared to Baner.

HINJEWADI MICRO MARKET REPORT- 2018

PRICE TREND Real estate prices for residential projects has remained more or less stagnant in Hinjewadi in the past one year.

Only around 1.1% capital appreciation has been witnessed in the last 12 months which signals the following:

5800 5780 5761

5760

5759

5740

5738

5720 5700

5716 5709 5697

5693

5684 5681

5680 5660 5640 Oct’ 17

Nov’ 17

Dec’ 17

Jan’ 18

Feb’ 18

Mar’ 18

Apr’ 18

May’ 18

Jun’ 18

Jul’ 18

*Average price per sq.ft

·

Prices have bottomed out in this locality and can now be expected to move northwards

·

With more than 200 projects offering homes in the range of Rs. 4,642/sq.ft. – Rs. 6,844/sq.ft. spanning mid segment to premium offerings, it is a buyers' market.

·

Rental yields are infact on the upswing, hence it makes sense for buyers to look at ready to move in options in this locality which can be rented out if not meant for self use.

Locality Price Trend

5727

HINJEWADI MICRO MARKET REPORT- 2018

RENT OUTLOOK Owing to a high-volume job market for IT and ITES industry, homes in Hinjewadi and adjoining areas are very much in demand for renting out. Residential apartments in Hinjewadi enjoy a rental yield of 3.28% per annum which is highly lucrative compared to cities like Delhi & Mumbai.

Other points regarding the rental scenario in Hinjewadi are: Ÿ

Demand for semi-furnished apartments is higher compared to fully furnished or unfurnished apartments.

Ÿ

Rent is around Rs. 10,800 per month for a 1 BHK apartment; Rs. 13,750 per month for a 2 BHK apartment, while it hovers around Rs. 18,700 per month for a 3 BHK in 2018.

A research by Vestian Global reveals that the total population of working professionals residing in Hinjewadi is around 80,000. Annual absorption rates of residential spaces are in the range of 1.75 – 2 million square feet. These figures are expected to grow in the coming 2-3 years on account of the momentum that this locality is witnessing in terms of job opportunities in the IT sector and the push by developers to complete projects in the pipeline.

20000

18674

18000 16000

13751

12000

Rental Activity in Hinjewadi

14000

10314

10000 8000 6000 4000 2000 0 1 BHK

2 BHK

3 BHK

*Rental Price Estimate Per Month (Rs.)

HINJEWADI MICRO MARKET REPORT- 2018

CONCLUSION In past few years, the interest and demand for property in Hinjewadi has grown by leaps and bounds. Apart from the obvious factors behind the growth of the locality like the presence of IT parks and offices, proximity to the Mumbai – Pune Expressway and to other parts of the city of Pune, below are certain other Pros and Cons of the locality:

PROS Hinjewadi Phase II & III are surrounded by hills of the western ghats and lush Prices of residential projects are affordable as compared to other nearby green forests. Approximately 30% of Hinjewadi has green cover which helps areas like Wakad, Baner and Aundh. a lot in keeping the weather pleasant almost all year long.

Social infrastructure is developing to catch up with the growth every year.

Presence of IT giants and other industries in the locality provides lots of job Hinjewadi is a good destination for schools, colleges, hotels, hospitals, opportunities and attracts many migrants to the area. malls, recreation and entertainment.

Hinjewadi is one of the planned localities of Pune as compared to other areas.

CONS With only 36 buses plying in the area, transportation is an area where Hinjewadi struggles. With no proper provisions for public transport, people are compelled to use personal vehicles which has contributed highly to the traffic and pollution levels in the area.

Having said the above, PropTOQ has a favourable outlook in general towards Hinjewadi and predicts an upward swing of 5-7% in residential property prices in the next 12-18 months, with the rental rates also mirroring the same sentiments. has the following scores to give on the parameters listed below:

There are no municipal water supply and residents depend entirely upon ground water and Hinjewadi also lacks drainage and sewerage systems Phase II & III also lack social infrastructure in the form of local market places.

Security in Hinjewadi is also a minor concern with instances of eve teasing being reported in the recent past.

9/10

7.5/10

Physical Infrastructure Social Infrastructure

7.5/10

Overall Liveability

Team Proptoq Editor - Amit Ahlawat Researcher - Nivriti Raj Designer - Anurag Prashant Designer - Manish Gusain

www.proptoq.com