Pimpri-Chinchwad – The Emerging Corridor

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Pimpri-Chinchwad has managed to come up in the top 5 locations amongst current active real estate investment in Pune based on its location, real estate activity and quality of life. Considering the spatial distance and accessibility Pimpri-Chinchwad is the next node of development in Pune region as this place has immense real estate potential which can be tapped by investors and developers of the surroundings. What are the development drivers? Proximity to a pilgrim site of Alandi, where more than a million people visit annually can give a boost to hospitality infrastructure. Affordable property rates of both residential and commercial properties in Pimpri are positioned as affordable in comparison to other parts of the city. In the past few years, this area has become a vibrant real estate destination, from being an industrial area to growing as a self-sustaining satellite city it has come a long way. The presence of industrial area (Pimpri MIDC and Chakan MIDC), IT Parks and several colleges has prompted demand for the housing sector. Infrastructure development has been a big pull factor as a development driver in the Pimpri-Chinchwad area. Panvel-Chakan, new state highway, Pune outer ring road, the upcoming metro line which will directly connect to Pune city. Pimpri-Chinchwad region is also emerging as a Multi-Modal Hub with enhanced connectivity from Pimpri railway station, Vallabhnagar State Bus Transport and Proposed Metro. Brief on Pimpri-Chinchwad Municipal Corporation (PCMC) Initiatives The development in this area is been thoroughly planned by Pimpri-Chinchwad New Town Development Authority (PCNTDA). To gain the maximum value of every location, PCNTDA follows a master plan for the development of residential property in PCMC. The anticipated growth needs to be fueled by locals, central and state-level government policies envisioning the city’s prospects and implementing the proposals and interventions swiftly. One huge advantage to this location is 30 minutes’ drive time to Hinjewadi IT park. In the recent turn of Events, GERA development brought 12 acres of land parcel situated in Pimpri-Chinchwad from Dai-Ichi Kakaria for INR 153 crores. What is the future outlook of real estate development in Pimpri-Chinchwad This micro-market is dominated by residential developments and the overall sales rate CAGR% in the last 5 years is observed to be about 2.43%. Currently, in the Pimpri-Chinchwad node, the commercial stock is about 2 Million which is majorly a rental driven market. This market focuses more on leasing rather than sales strata because of the presence of IT ITES and Manufacturing industries in the region, where the developers are expecting a continuous appreciation in rental values. Talegaon and Chakan have been sanctioned 600 acres of land under the magnetic Maharashtra 2.0 initiative, to further strengthen the real estate base and supplement the demand for commercial and residential spaces in the nearby proximity of the region. Lack of A’ grade commercial office spaces in this area and other ancillary support have led to the demand for office spaces. The industrial area of MIDC and Non-MIDC areas of Bhosari, Chinchwad and Pimpri provided employment to 5-6 lakhs people in more than 4000 small and medium scale industries. Pune houses 1.3 lakhs registered MSMEs and 650-700 large scale units employing 17 lakh people. Pimpri-Chinchwad has huge potential in attracting investments in the coming years as it’s the fastest-growing node reason being location advantage, infrastructural advancements and as well as affordability land availability. The investment is expected to rise in the coming years both in the medium and long-term considering the development opportunities in this area. The development of the Pimpri-Chinchwad corridor is quite similar to the Thane-Belapur corridor and is expected to grow in a similar pattern. Colliers report in association with Kohinoor Group