Prashant Thakur, Head – Research, ANAROCK Property Consultants
Located in south-eastern peripheries of Pune, Undri was once a small and unremarkable village outside the Pune municipal corporation limits. After opposition from residents regarding merging of Undri into the Pune Municipal Corporation (PMC) in 1997, it was demerged in 2002.
In 2017, Undri came under the purview of the Pune administrative authority – Pune Metropolitan Region Development Authority (PMRDA). Many residents of the region, whose primary occupation was agriculture, sold their land parcels to private real estate players, thus paving the way for rapid growth of residential and commercial developments in Undri.
Surrounded by micro-markets such as Hadapsar, Pisoli and Handewadi, Undri offers relatively serene surroundings with thick green cover. It has good social infrastructural facilities including educational institutions, healthcare facilities and entertainment options.
Various IT-ITeS establishments including Magarpatta City in Hadapsar, Eon Free Zone in Kharadi and SP Infocity in Phursungi have created massive residential demand in and around the regions, eventually hiking property prices in these areas.
Undri caught the spill-over demand from these nearby markets with its relatively lower property values. This was a primary factor behind Undri turning into a preferred residential destination for Pune-based IT-ITeS professionals.
Undri scores high on connectivity due to the presence of a good road network and easy connectivity to the railway station and the airport.
Road: Major arterial roads that provide connectivity with Undri are Hadapsar Road, Kondhwa Road, Solapur Road and NIBM Road. Its proximity to NH 48 connecting Mumbai-Pune and NH 65 which connects Katraj with Hadapsar enhance Undri’s connectivity quotient further.
Rail: Pune railway station is 11 km away via NIBM Road and 12 km from Hadapsar via Mundhwa Road.
Air: Undri has easy access to the Pune Airport (located 18 km away) via Airport Road and Kondhwa Road.
Residential Supply & Pricing:
Since 2013, 12,300 units have been launched in Undri. The highest supply of 4,000 (33%) units was registered in 2014, after which the new launch supply fluctuated until 2017. Q1 2018 witnessed no new launches in Undri due to the presence of a significant unsold stock.
Currently, nearly 5,600 units in Undri are lying unsold. Of this total unsold stock, nearly 93% is under construction.
Undri’s property market is dominated by mid-segment (prices between ₹40 – 80 lakh) properties accounting for 55% of the total new launch supply since 2015, followed by 44% of properties priced less than ₹40 lakh.
Out of the total stock, just 2,000 residential units are ready-to-move-in in Undri, offering limited choices for end-users.
While 1,700 units will be infused into the market in less than a year, another 8,500 units are likely to take more than a year for completion.
Amidst the transition happening in the real estate sector due to RERA and other policy reforms, developers in Undri are focusing on clearing their previously-launched stock rather than engaging in fresh launches.
Property prices in Undri have been on the rise since Q1 2017 till Q1 2018. With the impact of economic reforms like DeMo, GST and RERA being gradually absorbed, residential prices in Undri have been heading steadily northward. Property prices in Undri have appreciated by around 7% in the past two years, with average the price as of Q1 2018 being ₹4,500/sq. ft.
The once nondescript hamlet of Undri came into the limelight with the saturation of nearby regions and is now emerging as one of the most rapidly-developing real estate precincts in the south-eastern corridor of Pune. While the region faces certain civic challenges such as inadequate water supply, poor quality roads and inefficient sewerage network, these bottlenecks are now likely to be addressed by the administrative body which is planning to develop the region further.
Replete with affordable and mid-segment residential options, Undri will continue to see significant interest from both end-users and investors going forward.