Prashant Thakur, Head – Research, ANAROCK Property Consultants
Once an anonymous destination comprising of small villages in the peripheral areas of Pune, Hinjewadi is now a prime real estate hotspot. With the launch of the Rajiv Gandhi Infotech Park and consequent entry of various IT-ITeS majors and multinational companies, Hinjewadi has witnessed spectacular growth in working population. The accompanying demand for homes, backed by improving social and physical infrastructure, has made Hinjewadi one of Pune’s fastest-growing micro-markets in Pune.
During the early 2000s, the Maharashtra Government introduced its game-changing IT-ITeS Policy which offered liberal incentives to the technology-driven industries to set up operations in Hinjewadi. Waiving off stamp duties for owned and leased properties built on MIDC land also aided the large-scale development of this region. Thus, the 2,800 acres Rajiv Gandhi Infotech Park, also known as Hinjewadi IT Park, came into existence.
IT Leads the Way
The establishment of the Hinjewadi IT Park acted as a powerful magnet for IT-ITeS companies, whose arrival and expansion have been the primary growth drivers for the real estate market of Hinjewadi. IT-ITeS companies continue to be Hinjewadi’s commercial office occupiers at 85%, followed by manufacturing (10%) and biotechnology (5%). This region contributes around 60% of the state’s total IT exports – and with more than 400,000 professionals employed in here, Hinjewadi is a vitally important economic powerhouse of Pune.
Its residential property market presents an interesting canvas, as Hinjewadi has evolved into a hub for self-sustaining townships popular with the region’s discerning working population. This micro-market also offers a big range of properties from luxury to affordable, accommodating a wide cross-section of demand. Residential property development in and around Hinjewadi has transformed it into a vibrant commercial-cum-residential destination that promotes the walk-to-work concept.
More or less the focal point of Pune’s IT-ITeS revolution, Hinjewadi has extremely well-developed physical infrastructure and enjoys excellent connectivity to other parts of the city as well as Mumbai.
Mumbai-Bengaluru Highway: Located very close to Hinjewadi is the NH-4, linking Pune and Mumbai to Bengaluru, this highway ensures excellent connectivity to Mumbai.
Rajiv Gandhi MIDC Road: The Rajiv Gandhi MIDC Road runs parallel to the Pune-Mumbai highway, and is an alternative route to Hinjewadi Phase I and II that avoids traffic congestion.
The nearest railway station to Hinjewadi is Pimpri at a distance of 11 km, and Pune Junction railway station is at 21 km.
Metro rail: The 23 km Hinjewadi-Shivaji Nagar metro corridor, expected to be operational by 2020, will improve connectivity and reduce travel time to the central areas of Pune.
Residential Supply & Demand
Due to continuous infrastructure upgrades and rapid growth of commercial developments in the precinct, Hinjewadi has seen a massive residential supply with 14,000 units launched between 2013 and Q3 2017. Approximately 40% of these units were launched in 2013, recording the highest new launch supply amidst rising demand.
Although there was a decline in new launches post-2013 due to negative sentiment, inflation and economic slowdown, 2016 saw a gradual revival in new launch activity in Hinjewadi. Out of the total units, around 19% are ready-to-move-in properties while 38% are expected to be completed within the next 12 months. Only 20% of the residential units in Hinjewadi are likely to take more than 2 years to be completed, thanks to developers’ increased focus on completing existing under-projects before launching new ones so as to ensure compliance with RERA norms.
Average residential property prices in Hinjewadi increased from INR 5,110/sf in Q1 2015 to INR 5,470/sf in Q4 2016. While a massive supply infusion restricted exponential price growth in the initial periods, DeMo, RERA and GST impacted prices post Q4 2016. As a result, property prices in Hinjewadi dipped marginally post-Q4 2016 and hover at around INR 5,310/sf as of Q3 2017.
Hinjewadi Tech Park’s Phases I, II and III developed and functional, and Phase IV will be constructed as planned. The existing road network is being widened to 120 feet and is proposed to pass through neighbouring localities such as Marunji, Nere and Kasarsai, and construction in these localities is at full tilt. This and various other infrastructure upgrades in and around this location will boost future residential price growth at Hinjewadi, whose strategic location, excellent connectivity, constantly rising employment opportunities and robust physical infrastructure will continue to define it as a remarkably vibrant real estate hotspot in Pune.