Pimpri-Chinchwad: Pune’s Satellite City Coming Of Age..! - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Wednesday, March 23, 2016

Pimpri-Chinchwad: Pune’s Satellite City Coming Of Age..!

Pimpri-Chinchwad: Pune’s Satellite City Coming Of Age..!
by Mr. Alok Jha, Manager – Research, JLL India

Infrastructure, economic generators and quality housing supply will trigger PCMC’s housing market in the coming quarters

The Pimpri-Chinchwad Municipal Corporation or PCMC, a twin city to Pune and one of India’s most prominent industrial hubs, is strengthening its economic prowess by adding sophisticated manufacturing and information services along its periphery, in Chakan and Hinjewadi respectively.

Demand drivers for real estate in the region – Strategic location, affordable real estate, activity magnets like the Chakan industrial area, development of the IT cluster at Hinjawadi, good connectivity, strong road network and excellent physical and social infrastructure
Alok Jha, Manager – Research, JLL India

The transformation process

As any city matures, land and property prices go up. With the increasing price of real estate, the cost of living also goes up – and with the city corporation ending tax subsidies, not all industries can sustain growth. Industries need to move up the value chain to prosper, while others have to modernise or even relocate. Such a trend is being observed in the Pimpri-Chinchwad area. 

Various companies have unlocked their land to invest money back into their core business, which has provided an opportunity for real estate development – a few examples being Mahindra and Mahindra, Elpro, Premier, Crompton Greaves and Indian Card Clothing Co Ltd.

Real estate scenario

The Pimpri-Chinchwad area has become one of the most vibrant real estate destinations in the past few years. It has come closer to Pune in terms of being accepted as a residential destination instead of merely being a decent suburb, and it is on its way to becoming a self-sustaining satellite city. Developers are coming up with some large, quality residential projects in this area which are proving to be very attractive for the citizens of Pune. 

In addition, the number of colleges this market is home to has prompted demand for rental housing, and hence this area has been on the radar of investors too. Also, the presence of a number of retail developments/malls and commercial projects is beneficial for the area. Prominent retail projects in the area are City One Mall, Plaza Centre and Megamart.

Visionary infrastructure projects are a big pull factor for real estate in the Pimpri-Chinchwad area, and one of the major demand drivers for real estate. Ongoing infrastructure developments such as the Bus Rapid Transit System and the proposed international convention centre have given a boost to real estate development in the region.

Hinjewadi, which is one of India’s premier IT clusters, is located in close proximity to Pimpri-Chinchwad. Nearby areas such as Wakad, Pimple Nilakh, Ravet and Pimple Saudagar, have benefited immensely from the demand generated by employees working in the Hinjewadi IT cluster. Pimpri-Chinchwad will continue to benefit from further development in Hinjewadi.

While Pune continues to battle with the slow pace of infrastructure execution, Pimpri-Chinchwad is already passing on the benefits of visionary urban planning to its residents.

However, to sustain growth and attain maturity to remain capable of offering a good quality of life, the anticipated growth needs to be fuelled by local, central and state level government policies envisioning the city’s prospects and then implementing the proposals and interventions swiftly. The city also needs to tackle issues of irregular structures, and there needs to be more stringent execution of laws for not allowing illegal structures to be built again.

In addition, there is still a strong perception of the area being suitable for lower and mid-segment housing, but not premium housing. This perception could have something to do with the industrial zones nearby. However, this perception is slowly changing, with many manufacturing firms relocating to other industrial areas and a few quality residential and commercial projects being developed.


All in all, it is likely that the residential market in Pimpri-Chinchwad will attain a multifaceted character offering properties across different price points. High-end residential property, which was missing here for long, is now poised to grow the fastest – and reasonable land costs will allow developers to experiment with the creativity of the built form.
Pimpri-Chinchwad: Pune’s Satellite City Coming Of Age..! Reviewed by S. Chitra on March 23, 2016 Rating: 5 Pimpri-Chinchwad: Pune’s Satellite City Coming Of Age..! by Mr. Alok Jha, Manager – Research, JLL India Infrastructure, economic gene...

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