Pune Property Investment: Harnessing The Boom At Dhanori And Charoli

Arvind Jain

Location is everything in real estate - and never more so than in Pune, which is among India's most exciting and active housing markets. Pune has not only emerged as a IT-driven hotbed but also a powerhouse of manufacturing activity, even as the excellent education and healthcare institutes in the city consolidate its reputation as the most preferred City To Live In.

Naturally, Pune's real estate market is in a boom phase which shows no signs of slowing down. The challenge for property investors who want to make their fortunes in this city lies in finding the right locations among the confusing array
of options.

The areas that have seen the highest appreciation in previous years (such as Kalyaninagar, Vimannagar, Kharadi, Koregaon Park and Magarpatta) are by now either over-priced, almost saturated or both. Price appreciation has slowed down in these locations after peaking out at very high levels, making them unaffordable to mid-income home buyers and retail investors alike. The time has once again come to
widen the search net for areas which are still at the cusp of their growth trajectory.

Luckily, Pune is a growing city that delivers new investment hotspots with remarkable regularity. With IT / ITeS and manufacturing still remaining the key drivers for property investment success in Pune, investors now need to identify locations that benefit from both while still being on the first lap of their growth cycle. Two of these areas are Dhanori and Charoli.

Dhanori in East Pune began its rise to prominence only a few years back. Apart from its proximity to the large industries and IT/ITeS firms located Yerwada, Vishrantwadi, Kalyani Nagar and Kharadi, it also had the advantage of being close to Pune Airport and having sufficient availability of land. By now, the area is already in a fairly advanced stage of development.

Despite the fact that Dhanori enjoys good connectivity and access to the necessities of modern life, the entry points for property investment still remain attractive. Dhanori still has good availability of options in the mid-income homes bracket, and demand is predominantly driven by end-users. Dhanori's growth will also be helped by the coming of Pune's much-awaited Ring Road, from which it stands to benefit directly.

Charoli in the Northern part of Pune is another location that has been attracting investor interest for various reasons. Firstly, it is located a mere 6 kilometres from Pune Airport. In previous years, before its emergence as economic microcosm in its own right, proximity to the airport was the most important trigger for the real estate boom on Nagar Road. Like Dhanori, Charoli benefited from being close to this key transport hub, which plays an important role in keeping the gears of almost every industry in Pune - Information Technology, manufacturing, retail and healthcare - well oiled. Also, Pune Airport is a massive employment generator in its own right.

Charoli is seeing an upsurge in property demand because it is advantageously located along the planned 170-kilometre Ring Road around Pune and Pimpri Chinchwad. The connectivity that this road will provide to inter-connectivity to various workplace and logistics hubs will ensure that real estate growth in Charoli will be considerable over the next few years. The arrival of a massive 400+ acre township in this key location is also serving as a big profile boost to Charoli.

Property investments into these two locations are going to bring in very satisfactory returns to those who have managed to catch the best entry point. The demand for homes in Dhanori and Charoli is set to rise exponentially over the next five years, providing the assurance of both high appreciation in base property values and sustained rental income.


About The AuthorArvind Jain is Managing Director of The Pride Group, a world-class property development conglomerate that is changing the cityscapes of Pune, Mumbai and Bangalore. Established in 1996, The Pride Group has built and delivered over 10 million sq.ft. of constructed area.